Global Iso Butanol prices easing post steep rise in previous month
- 05-Apr-2022 4:44 PM
- Journalist: Nicholas Seifield
The Global Oxo Alcohols market is currently full of uncertainties that make it hard to predict for any market expert. Rising COVID cases in China, ongoing Russia-Ukraine war, escalating crude oil value, truce agreement between UAE and rebels, strategic reserves released by the USA, have been injecting waves of instability in the prices of several commodities across the global market. Oxo Alcohols manufacturers have faced a steep rise in the prices of upstream crude oil, which compelled them to revise their offers to sustain profitability.
As per the ChemAnalyst data, in Asia rise of around 4.6%, 4.2%, and 6.6% was observed for Iso Butanol in Japan, China, and India, respectively, during the February-March timeframe. All these price revisions were supported by rising upstream value coupled with firm offtakes from the domestic market. However, pricing dynamics were frequently changing due to changing market sentiments. In China, post-winter Olympics and spring festival, demand fundamentals for the product rose significantly and in line with rising crude oil prices in the global market. Meanwhile, in India and Japan, the recovering economy and ample offtakes from niche buyers led to consistent hikes in prices of several commodities, including Oxo alcohols in the respective market. Other than Asia, the ChemAnalyst data shows a hike of 3.4% observed in the USA, owing to rising inflationary pressure on converters due to the steep rise in the price of crude oil.
Global market sentiments have started pointing towards ease in prices of Iso Butanol, as global crude oil value has started showcasing some ease in the global market. This ease appeared after the USA announced the release of strategic reserves to cool soaring crude oil value; meanwhile, the truce agreement between UAE and rebels also bolstered optimism and supported this decline.
As per ChemAnalyst, “the prices are expected to show a further decline in the forthcoming weeks, as the global crude oil value has tumbled significantly in the past few days. However, another reason behind this anticipated decline would be wavering demand from the domestic market coupled with a lacklustre market in China as China is in strict lockdown restrictions after a long time due to the huge spike in COVID cases in the country. “