Inflationary Pressure in the Paints and Coating Industry Uplifts the Glycol Ether Market Globally
- 21-Apr-2022 6:36 PM
- Journalist: Patricia Jose Perez
In the first quarter of 2022, the global commodity market observed a persistent gyration in the market dynamics. Several external factors have impacted the sentiments, such as the rising upstream values and geopolitical conflicts. Supply dynamics in the Northeast Asian region have pressurized against the soaring inquiries from the paints and coating industries, creating an imbalance in the overall supply-demand outlook. The market players were keen to hold the wait-and-see sentiments in China as the COVID spread restricted the market movement, creating hindrances in arbitrage activities. Traffic at major Chinese ports has exceeded the limit by 500% amidst the slower onloading and offloading activities.
The Russian forces' ongoing hostilities of "special military operations" over the Ukrainian territory added an inflationary pressure on the commodities value chains. So far, Russia is accountable as a significant Crude Oil producing country, and the conflict brought strict sanctions from the western nations over its considerable energy and chemical commodities. In response, it uplifts the crude oil value in the international market to a seven-year high, identical to the prices in 2014. The impact levied in the complete downstream value chain, end-use sectors, and quotations of every commodity witnessed a significant increase in the producer's offers. The paints and coating sector is among the majorly impacted industry; as the temperature rose, the building, construction, and restoration activities have paced, supporting the demand outlook across the region. These market developments had forced the bullish sentiment in the Glycol Ether value cycle across several areas of the Northern Hemisphere.
As per ChemAnalyst, the demand outlook from the downstream industries is likely to maintain a sturdy trend in the Chinese domestic market. It is anticipated that the prices are likely to remain bullish in the upcoming quarter. At the same time, the forthcoming seasonal hype from the paints and coating industry will maintain the bullish sentiments for Glycol Ether across the Northern Hemisphere. The European market is likely to be the most affected by war-related fluctuations. The market players were uncertain about the hostilities in the eastern part of Europe, as Russia's financial isolation will likely shift the market dynamics in the long term.