How Russia-Ukraine War may Affect Global Oxo Alcohol Market?
- 28-Feb-2022 3:07 PM
- Journalist: Peter Schmidt
Since 2020, global market dynamics has been challenging to predict for everyone, where pandemic related uncertainties coupled with energy related issues and so on disrupted all the usual trends. Pandemic related uncertainties were seeming to be getting vanish from most of the major economies and industrialists were started expecting normalcy in market dynamics. Contrary to market expectations, new global disturbance has arrived in the shape of war. Russia-Ukraine conflict has exaggerated to a level that it has started disturbing pricing dynamics of most of the chemical commodities on the globe. ChemAnalyst has analysed all the possible scenarios that may arrive in global oxo alcohol market in coming months due to war situation going on in Europe.
On the back of this ongoing war, global crude oil prices have already started rising and touched the mark of USD 105/barrel. However, nations like India have indicated to release strategic oil reserves to support domestic market, as this huge spike in oil prices will eventually lead to a steep rise in inflation across international market. Oxo Alcohols pricing dynamics have been tracing the movement of crude oil since January in global market, which has now started threatening the profit margin of downstream consumers. In addition, demand fundamentals for oxo alcohols are also rising in global market as pandemic related uncertainties started easing, while countries heard slacking COVID restrictions.
As per ChemAnalyst analysis, Oxo Alcohols prices may see further uptrend in forthcoming months, as despite governments are trying the minimise the losses of converters, prices may still not float below USD 100/barrel. Moreover, European market would be the one affected the most. Convertors in Germany may suffer with shortage of natural gas if this war extends further, as Germany highly dependent upon Russia for around 50% natural gas requirement. As observed previously during October, high natural gas prices pushed up the prices of several commodities including Oxo Alcohols in European market, while key players like OQ chem, Evonik and Arkema etc had to raise their product prices including additional temporary energy charge. Conclusively, Oxo Alcohols prices are going to remain buoyant for further period in global market, while European players may have to bear extra burden of high natural gas cost.