Butyric Acid prices showing buoyancy in Asia with rising feedstock costs
- 08-Apr-2022 4:37 PM
- Journalist: Rene Swann
The prices of Butyric Acid are on a continuous uphill trend in Asia on the back of strong feedstock Propylene market which is further under cost pressure from skyrocketing upstream Crude oil. This inclination is additionally being supported by the never-ending hunger of the global pharmaceuticals sector.
Sky-high upstream crude oil prices in the international market have been alarming global converters, affected by Russia and Ukraine's continuous conflict. Notably, the world's largest consumers are China, India, South Korea, Japan, and the United States, where petrochemicals are getting expensive week after week. The US-based WTI Crude May contract futures traded at USD 98 per barrel, while the Brent Crude June contracts traded around USD 103 per barrel on the 7th of April.
According to the recent ChemAnalyst data, the major international producers, such as Vigon International, LLC. (United States), Yufeng International Co., Ltd. (China), Tokyo Chemical Industry Co., Ltd. (Japan), and Hefei TNJ Chemical Industry Co., Ltd. (China) have upped bids for their Butyric Acid product lines in the regional market to protect their margins. The product's consumption has been increasing since the start of 2022 due to solid offtakes from downstream pharmaceutical and nutraceutical players and a powerful interest from Chemical Intermediate producers.
Butyric Acid is also utilized in the animal feed industry to improve nutrient absorption, promoting intestinal health and animal performance. In Asia, poultry farms are one of the most important end-users of animal feed. As a result of the rising output of poultry meat in the region, demand for animal feed is increasing, propelling Butyric Acid prices to new heights.
As per ChemAnalyst, "The prices of Butyric Acid will stay buoyant in the Asian market with the mounting upstream Crude oil prices heading for historical highs due to prevalent turbulence in Europe. Also, the continuous growth of the pharmaceuticals industry and substantial demand for butyric acid in this industry can further be the driving factors of Butyric Acid market growth."