Global Butanediol Prices Witnessed a Steep Decline
- 16-Aug-2022 3:11 PM
- Journalist: Xiang Hong
Butanediol prices had a sharp fall in the week ending on august 5 in the Chinese market. FOB Qingdao prices settled at USD 2125/MT, a humongous weekly decline percentage of roughly 40%.
Henan Energy Chemical Group Fine Chemical is switching catalysts to other products, resulting in low industry demand for BDO. Similar to this, other firms cutting back on manufacturing aided the BDO market's supply side. Due to a significant fall in the downstream PTMEG market and a slight decline in the THF manufacturing companies, overall demand has been sluggish lately. The slow end-use textile market influenced the continuous mediocrity and potential collapse of the spandex market. As a result, the price of BDO has continued to decline as supply and demand dynamics in the market remain favourable.
When the USA put strict import restrictions on China, which led to heightened price competition in the Chinese market, market dynamics became even more complicated. In contrast, while port-side Sinopec Great Wall Energy & Chemical pricing has indicated a dramatic drop in rates, quotation obtained by traders from Xinjiang enterprises has shown somewhat milder swings.
Similar sentiments were witnessed in the European Region as Butanediol prices in the German market continued falling on the back of muted demand and negligible to zero enquiries. The domestic market trend of Butanediol showcased a downward trajectory in Germany, followed by reduced offtakes and sluggish demand from the end-user industries. As per the market sources, traders are ready to negotiate over spot purchases as the season of recession is hovering over the head of major players in the country. Nevertheless, the energy crisis in the country is still a significant concern among the market participants, which may disturb the pricing dynamics in the coming months.
As per ChemAnalyst, "Butanediol prices in the global market are projected to stay weak in the coming weeks as consumption levels from the downstream sectors are likely to continue slow and sluggish on the back of muted demand.