Butyl Cellosolve prices soaring Globally on the back of firm demand
- 24-Mar-2022 4:30 PM
- Journalist: Robert Hume
In this month, the global Butyl Cellosolve prices stayed buoyed. The market continued to experience great demand from the downstream cleaning sector due to solid feedstock Ethylene Oxide, n-butanol, and the racing upstream oil value. The international oil benchmark Brent crude lingered above USD 112 per barrel on Monday, higher than 4% from the previous week, which supported this uptrend of downstream Butyl Cellosolve pricing.
Despite the ongoing Russia-Ukraine war that has disrupted the international oil market sentiments, Saudi Arabia, being the world's largest oil exporter, fell short of its oil this week. Yemen's Houthi rebels launched one of their most intensive series of strikes, affecting the global petrochemical derivative market. The kingdom's oil and natural gas output were targeted on Sunday, setting fire to a petroleum distribution centre in Jiddah's port and halting production at a petrochemicals complex in Yanbu on the Red Sea coast. The Saudi Energy Ministry identified a temporary decline in the oil output at the Yanbu site, producing 400,000 barrels per day which collectively affected many dependent nations like China, India, Japan, South Korea in the Asia-Pacific region. Thus, the key players of Butyl Cellosolve, like Dow Chemical Company, Solventis, Vertec Biosolvents, were compelled to implement positive base price revisions because of the increased raw material input costs.
On the other hand, the growing population, changing lifestyles, improved hygiene maintenance, and increased health consciousness amid uncertainties of rising Covid cases have been the major driving factors that promoted the product's demand as a disinfectant, household, and industrial cleaner. Also, the advancements in the automotive sector and increased production of cars enhanced the usage of Butyl Cellosolve in the paints and coatings industry.
As per ChemAnalyst, "Accelerating strategic tensions in Europe and the Middle East combined with production cuts from Russia with no signs of ease anytime soon might further push the prices of Butyl Cellosolve higher in an already tight market."