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German Tertiary Butyl Alcohol Prices Stabilize Amid Demand Shifts in October
German Tertiary Butyl Alcohol Prices Stabilize Amid Demand Shifts in October

German Tertiary Butyl Alcohol Prices Stabilize Amid Demand Shifts in October

  • 31-Oct-2024 1:00 PM
  • Journalist: S. Jayavikraman

Hamburg, Germany: German Tertiary Butyl Alcohol prices have stabilized after registering significant uphill trend in October. Owing to a slight improvement in consumer demand oil prices have steadily increased in recent weeks due to tighter supply and potential demand softening, leading to higher cost pressures for Tertiary Butyl Alcohol. Purchases of Tertiary Butyl Alcohol have risen to meet immediate needs, while domestic inventories remain low in the region.

Additionally, the impact of crude oil has also been noted on the Tertiary Butyl Alcohol market. The escalating conflict between Israel and Hezbollah in the Middle East has been a major factor behind the rise in crude oil prices in the first half of October. Concerns that the conflict could expand into a regional war have raised fears of potential disruptions to oil supply and maritime routes, creating a risk premium that has driven prices higher. These geopolitical tensions, coupled with rising demand from China and supportive monetary conditions, have outweighed bearish market pressures. Additionally, the OPEC+ decision to cut production further in October has reduced global supply, contributing to the increase in crude oil prices during this period.

However, the manufacturing activities have been taking place at reduced rates due to high material availability and sluggish consumer demand in the domestic market. Germany’s anticipated manufacturing activities for October improved slightly. Despite this rise, the economic indexes still indicates a steep contraction in the manufacturing sector, with reports of customers holding back on spending amid high economic uncertainty and weak demand from the automotive sector.

The German economy has, for now, halted its decline. In manufacturing, the downward trend paused this month due to less pessimistic expectations, though the assessment of current conditions remains significantly worse, with order shortages continuing to be a major issue. Capacity utilization dropped further.

Additionally, manufacturers of Tertiary Butyl Alcohol faced another significant decrease in purchase prices due to competitive pressures. Sentiment remained largely negative. Cost-wise, the support from the upstream has remained strong in recent weeks. As per the latest assessment, the prices of Tertiary Butyl Alcohol FOB Marl settled at USD 1500/MT.

Demand for Tertiary Butyl Alcohol from downstream sectors showed improvement in both domestic and European markets as restocking activities were taking place. Purchases of Tertiary Butyl Alcohol increased, driven by immediate needs, while domestic inventories remained low across the region. Additionally, the European market has been impacted by the arrival of delayed import shipments, adding to the existing supply surplus and intensifying pressure on prices. These combined factors have created a challenging environment for Tertiary Butyl Alcohol producers and distributors in the region.

According to the ChemAnalyst pricing intelligence, the prices of Tertiary Butyl Alcohol are anticipated to remain stable in the upcoming weeks are the market sentiments are presumed to operate in an equilibrium.

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