Downward Procession Continues for German Butyl Glycol Prices
- 08-Dec-2022 4:24 PM
- Journalist: Francis Stokes
Hamburg (Germany): Over the course of the last two months of October and November 2022, Butyl Glycol prices decreased in Germany. The economic downturn and the fear of a recession have reduced demand. Additionally, a number of upstream companies involved in the processing of Butyl Glycol were forced to limit or reduce their production rates as a result of the fall in the price of crude oil over the past few months. Additionally, downstream companies producing paint and textiles had to reduce their manufacturing activities. The drop in Butyl Glycol prices continues in December 2022.
Butyl Glycol manufacturers have been unable to cope with the higher energy costs because of the continuous clash between Russia and Ukraine. So, producing Butyl Glycol becomes less profitable as a result.
The reduction in production has not been sufficient to stabilize Butyl Glycol prices up to this point due to the moderate demand. Consequently, material availability over the past two months has met overall demand. Demand from paint and textile manufacturers was modest at the beginning of the low season. So, in November, Butyl Glycol was traded for about USD 1,625 per MT on FOB – Hamburg basis.
As the prices of n-Butanol and ethylene oxide, which are the base materials used in the production of Butyl Glycol, are expected to decrease this month, the prices of Butyl Glycol are projected to go down further in coming weeks as the West awaits holidays. Downstream companies are likely to continue exhibiting average interest in Butyl Glycol, and prices of Butyl Glycol could continue falling down because of this factor.
As opposed to Butyl Glycol, bio solvents are likely to be considered by a greater number of downstream businesses for production purposes.
However, ChemAnalyst anticipates Butyl Glycol prices may shift the balance from February 2023 onwards. The firm has predicted the prices of base materials used in this product’s production to grow and the demand for Butyl Glycol for downstream processing to increase in the coming quarter.