Easing Covid Restrictions in China Strengthening the n-Propanol Market
- 18-May-2022 4:22 PM
- Journalist: Yage Kwon
Shanghai, China: According to the monitoring data of ChemAnalyst, the market for n-propanol has bounced back by the mid of May 2022, with its prices rallying upwards in the Chinese regional market. With the expectations of easing Covid restrictions, the solvent's demand rose significantly with healthy intake from the downstream petrochemical sector.
According to the ChemAnalyst database, the offers for n-propanol across the Chinese regional market witnessed an increment of approximately 2 percent during the current week. The solvent market growth is primarily driven by the recovering demand from the downstream paints and coatings industry.
As per our insights, the demand-side concerns were elevated until last week in the aftermath of Covid restrictions that led to suspended operations in most major facilities. Consequently, the solvent price plunged to an all-time low towards the end of April because of the weak but not unexpected consumer spending habits.
Surprisingly, on 16th May, Shanghai announced plans to lift the covid lockdown, which has lasted more than six weeks. The megacity, which has over 24 million people, cut off the public transmission of Covid in most of its districts.
After an interview, Municipal Health Commission revealed that the number of new local Covid cases fell below one thousand for the first time in more than 50 days on Sunday.
Vice Mayor Chen Tong told a press conference on Sunday that Shanghai has been uncompromisingly encouraging the opening of commercial outlets and the return of staff to assure the supply of everyday essentials.
Furthermore, a Shanghai-based petrochemical trader quoted that the number of industry establishments operating in the metropolis has expanded from fewer than 1,400 to 10,625.
As per ChemAnalyst, "n-Propanol prices are expected to stay buoyant in the upcoming weeks due to the improving demand fundamentals across the domestic market. China's financial hub, Shanghai, might gradually allow the reopening of more factory outlets in the near term. Various downstream industries are likely to increase their consumption of n-Propanol, which is likely to result in solvent scarcity. All the factors mentioned earlier are predicted to push up the n-Propanol prices in the future."