Benzaldehyde Prices to Shot up in Q1 2022 as China Prepares for Winter Olympics
- 29-Dec-2021 5:01 PM
- Journalist: Li Hua
China’s clamor for blue skies in order to have more aesthetic appeal for the impending Winter Olympics have created clouds of uncertainty over production rates in heavy industry enterprises. This has resulted in market speculations around material availability of several key materials in the upcoming quarter. In lieu of that, prices of Benzaldehyde are expected to climb in coming months.
Winter Olympics 2022 are scheduled in early February next year. Aware of the dire environmental situation across China, authorities have been highly proactive. Ministry of Environmental protection has noted some critical areas and has been taking some stringent steps in the concerned areas. As per latest information, North China, Huaibei, and West China are the most polluted areas and need considerable transformation.
There has been consistent news around preemptive operating rate cuts and plant shutdowns in heavy industries to cut emission rates and enhance overall watching experience aesthetically. Rate cuts and shutdowns are planned from the beginning of the new year till 1st week of March 2022.
Uncertainty around feedstocks availability in coming months have sent shockwaves in Benzaldehyde market where market participants are expecting strong price spike in coming months. Benzaldehyde, highly versatile petrochemical, found its varied use across a spectrum of industries ranging from pharmaceutical to dye and paints industry. Toluene, a key feedstock for Benzaldehyde, is likely to face the brunt of the shutdown and rate cuts.
As per ChemAnalyst, “upcoming shutdowns and production disruptions are likely to cause a wave of uncertainty around the petrochemical availability in the coming quarter. Benzaldehyde along with several other chemicals and petrochemicals are likely to face lopsided supply dynamics in coming months. However, production levels are likely to improve in Q2 which is anticipated to balance the market fundamentals after skewed Q1.”