High Consumer Demand Pushing Up Tertiary Butyl Alcohol Prices in the Global Market
- 22-Jun-2022 8:50 AM
- Journalist: Motoki Sasaki
As per the latest insight, the prices of Tertiary Butyl Alcohol (TBA) have witnessed an upward momentum in the European market. The robust demand for the Tertiary Butyl Alcohol from the downstream as a solvent and paint remover, coupled with the high energy costs, has pushed up the Tertiary Butyl Alcohol prices to follow an uptrend in the domestic market.
Furthermore, the supply disruptions caused by the Russia-Ukraine conflict have put considerable pressure on European gas prices, subsequently impacting the Tertiary Butyl Alcohol entire value chain. Also, the increased prices of the Tertiary Butyl Alcohol have imposed its cost support in the arbitrage between the European nations, as Germany is among the primary manufacturer of Tertiary Butyl Alcohol in the region.
According to the ChemAnalyst database, prices of Tertiary Butyl Alcohol in Germany were hiked by approximately 2.1% in June, backed by the rise in the raw material cost notably, Isobutylene.
On the other side, in the Chinese market, demand for Tertiary Butyl Alcohol in the solvent and paint industries as paint remover has continued to improve. As per the market sources, the paint industry showed a strong recovery in the wake of easing lockdowns as well as pandemic restrictions along with the seasonal hype from the Construction sector which significantly improved the value of Tertiary Butyl Alcohol in the Chinese market. As a result, the prices of Tertiary Butyl Alcohol in China were settled at around USD 1590/MT in mid-June.
Besides, in the Indian market, the prices of Tertiary Butyl Alcohol have continued to soar owing to the rising demand for the paint and the fabrication of Methyl Tertiary Butyl Ether. Furthermore, Since India is a majorly imported commodity, rising maritime costs (the average freight cost has hovered in the range of $766 to $11,908) coupled with the delay in the shipping amidst port congestion, which in led to the high pricing of Tertiary Butyl Alcohol in the local market.
As per the ChemAnalyst estimation, “Prices of Tertiary Butyl Alcohol is likely to increase in the upcoming weeks backed by the growing demand in the solvent and other segments. In the meantime, the Russia-Ukraine war and new COVID-19 restriction in China are looming further disruption to already stretched global supply chains in terms of delayed deliveries, rising fuel prices, and an impending raw material crisis”.