Crude derivative solvent estimates may ease with falling oil prices

The petrochemical prices have been at record heights with energy supply risk amid immense supply disruptions in most countries worldwide on the back of Russia’s invasion of Ukraine. As per the ChemAnalyst database, the high price wars among the significant derivative market players on imperative competitive pricing have begotten the prices of n-Propanol to shoot up in China, the largest oil importing country.

But after the peace talks between Ukraine and Russia, the pricing trend dramatically witnessed a downfall. On Monday, the international benchmark Brent crude slipped more than 7 percent to USD 111 per barrel, while West Texas Intermediate crude futures, the U.S. oil benchmark, slid 8 percent lower and traded at USD 104.5 per barrel. As a result, the derivate solvent prices experienced a decline of approximately about 3% in the Chinese domestic market according to the ChemAnalyst database.

Proportionally, the recent eight-day Covid lockdown in Shanghai, the world’s largest port, has disrupted many products supply chains and suspended trading activity in China, further leading to container scarcity across the region may choke various downstream industries like pharmaceuticals, petrochemicals, and cosmetics in the overseas market.

As per ChemAnalyst,” n-Propanol prices may continue to get affected with the declining Crude futures in the global market. The resultant price drop may be in all the petrochemical derivatives found in various everyday products and household commodities, ranging from microfibers to moisturizers to pharmaceuticals.”