Taking Pressure from Rising Upstream Value, Butyl Acrylate Price has Started Rising in India
- 14-Feb-2022 4:01 PM
- Journalist: Jai Sen
As per recent insights, rising upstream value i.e., crude oil is putting pressure on several downstream derivatives and inducing further inflationary pressure on consumers. Butyl Acrylate in India is one of the products whose prices have started showing buoyancy in domestic market, and there are couple of reasons behind these price fluctuations. Rising crude oil value remained a major factor behind this uptrend, which is also affecting feedstock n-Butanol and Acrylic Acid prices. As per ChemAnalyst data, after witnessing consistent decline for several months, a rise of around $18/MT was observed during first half of February in India.
Recently, crude oil price has risen exponentially due to uncertainties hovering across the global market. Low inventories level of USA pushed up the spot prices of Brent, while geopolitical tension between Russia and Ukraine increased global contract purchases. Meanwhile, improved consumption in China after ease in dual energy policy and winter Olympics related restrictions, also affected the overall pricing dynamics for crude oil in the global market. In addition, demand fundamentals for the product have also risen from the downstream derivative segment, which is also supporting this overall price uptrend in Indian market.
As per ChemAnalyst analysis, prices are likely to stay buoyant for further period in India, as rising demand fundamentals for the product as well as for feedstock commodities are inducing optimism across domestic manufacturers. Furthermore, as per the analysis, if the issue between Russia and Ukraine escalated further, it may lead to a steep rise in prices of essential commodities including Crude and LNG, else crude oil value may stabilise by the mid of April.