With Slow Downstream Demand, European Butanediol Prices Continue to Move Southwards
- 22-Dec-2022 2:13 PM
- Journalist: Shiba Teramoto
Germany- As industrial activities constrict in the European region, the demand for Butanediol is also concise, resulting in proportionally declining overall market prices. The rising energy prices impact chemical industries in the European market despite the recent Russian gas price cap agreement. However, market insiders are still in a dilemma if the energy crisis will be fully resolved. The European countries have stored the gas before the commencement of winter. Apart from these external factors, the stagnant feedstock (Maleic Anhydride) prices in the European market contributed to a slight decline in Butanediol prices. Moreover, the Butanediol suppliers witnessed fewer inquiries about the product from end-use manufacturing units such as tetrahydrofuran and solvent industries. In mid-December 2022, the Butanediol prices ranged between USD 2230 to 2380 per MT, FD Wuppertal (Germany).
European industrial units are also preparing for upcoming holidays to destock the available stockpile. The end users are showcasing low interest in purchasing Butanediol as they are looking for better prices and an improved market scenario after the Christmas holidays. European countries such as Germany, the United Kingdom, and Italy import the product from China, the global mass exporter of Butanediol. However, the country's deteriorating economic conditions and increasing COVID cases are not hidden from the world. Chinese manufacturers had to halt their operations due to lockdown curbs, lack of staff members, and slow demand for Butanediol from the international market.
The Federal Statistical Office (Destatis, Germany) reports that inflation climbed by 10% in November. Despite the government's relief measures, the price of energy goods was 38.7% higher in November 2022 than in the same month a year earlier. As per ChemAnalyst, the market prices of Butanediol are anticipated to decline further with minute fluctuations as the end users prioritize their needs and shift their focus on buying food and healthcare commodities compared to textiles and other items available in the European market.