Butyl Glycol Prices Soar in India, Declines in Germany and South Korea at the Beginning of Q2 2023

The recent pricing analysis shows Butyl Glycol's upward trajectory in April 2023 in the Indian market. This was majorly driven by an increase in demand from downstream industries like cleaning agents and paints. However, the price of Butyl Glycol continued to fall in Germany and South Korea. In Germany, the prices have shown a decline of 3.5% despite the rising price of its raw material, n-Butanol, due to a lack of demand from the downstream industries. In like manner, the pricing trend has shown a decline in South Korea because of the same reasons.

The Indian market has been performing better than several other major economies for a long time, helping prices sustain firmness. Butyl Glycol has shown an ascending trend by a margin of 1.35% in April 2023 because of the increased demand from the downstream industries. The firm demand for water and solvent-based paints from various sectors, including construction, industrial, food, and chemical, has been pouring buoyancy in demand for Butyl Glycol in India. Also, the swift development of India towards the automobile industry has been contributing to its rise in consumption and prices.

European markets have been struggling to gain momentum while the economies are either in recession or on the edge of a recession. Consequently, Butyl Glycol prices have shown a fall of around 3.5% despite of rise in the price of n-butanol (the raw material used in manufacturing Butyl Glycol). Diminished demand for this product in the market from the downstream company has caused the price of this product to fall. Also, a major long-term factor for the decline in demand for Butyl Glycol is great environmental concerns that have occurred over the timeframe. Growing information about its adverse effects on continuous exposure has resulted in a slight loss in its demand.

As per the ChemAnalyst analysis, it is anticipated that the prices of Butyl Glycol may show a rise of around 2-3% in India, Germany, and South Korea in the upcoming months of 2023 due to expected improvement in seasonal offtakes from the downstream industry and expected further increments in prices of raw materials, Ethylene Oxide and n-Butanol.