Germany Plans to Impose a Surcharge on Natural Gas. Would the Declaration Impact the Butyl Acetate Market?
- 24-Aug-2022 4:36 PM
- Journalist: Rene Swann
Hamburg, Germany: Recently, German officials declared a Surcharge on Natural gas prices that would practically be imposed from October 2022. This new declaration has been compelling industries to replan their production schedules as the gas prices hike might severely impact production costs. There is a huge possibility that the sudden rise in gas prices would lead to production cuts in several industries in Germany. The Chemical market has become complex and confusing all of a sudden owing to this announcement. To resolve some part of the mystery, ChemAnalyst researchers analyzed the market for Butyl Acetate in the meantime.
The market sentiments of Butyl Acetate have been declining in the German domestic market since the month of June, backed by excessive supplies in the country. As the market is flooded with Butyl Acetate supplies along with the feedstock Acetic Acid, the availability is more than sufficient. Furthermore, the poor downstream demand from resins, lacquers, and perfume industries has been supporting the price plunge of Butyl Acetate in the market.
For a long time, no change in terms of pricing trends has been observed in the Butyl Acetate market. The trend has been expected to be downwards for the upcoming weeks as well until news on the Natural gas surcharge prevailed in the country. Now, would the butyl Acetate pricing trend, which was going south consistently, take a 180-degree turn, or would the market proceed with its rigid downward trend? As of today, the price value of Butyl Acetate is depleting because of the same factors that have been influencing its market for so long.
ChemAnalyst researchers suggest, “The Butyl Acetate market trend would remain same in the short term, it would keep plummeting in the upcoming weeks on the back of overflowing inventories. The impact of gas price surcharge would likely be seen in the long term.”