Cost of Isobutyric Acid Steps Down After Being Stable For a While in the United States
- 26-Dec-2022 5:00 PM
- Journalist: Shiba Teramoto
The price of Isobutyric Acid in the United States did not change significantly for a while due to a consistent demand-to-supply ratio. However, costs have decreased over the past week. ChemAnalyst's observations indicate that from December 16, 2022, the price of Isobutyric Acid in the United States has decreased by nearly 4.8 percent per MT.
The reduction in the cost of Isobutyric Acid is credited to the constant reduction in the prices of Propylene, the base material used in making this product, as a result of the supporting decline in the upstream raw petroleum markets globally.
According to the company's observations, Isobutyric Acid was being traded at USD 2,000 per MT on a FOB-to-Houston basis in the fourth week of December 2022. The company anticipates that the market of Isobutyric Acid to remain modest this week as well.
As OPEC countries are likely to increase the base price of crude oil, the natural substance from which the base material for Isobutyric Acid is made, it is anticipated that this product will see an increase in costs in the upcoming year. In addition, it is presumed that this product will see an increase in export orders, particularly from downstream Indian companies, for the delivery of paints, beauty care products, and their associated products to improve their production capacity and fulfill their increased orders in the coming months.
ChemAnalyst predicts that the price of Isobutyric Acid will rise by more than 2% per MT in the United States in January 2023 and by an additional 4% in February. The firm has forecasted the price of Propylene to rise during the same time period, and it is also expecting paints and cosmetics manufacturing companies to demand this product more for downstream processing; hence, it is anticipating the cost of Isobutyric Acid to grow up.