Iso Butanol Prices Tumble on Easing Supplies and Feeble Demand in India
- 03-Dec-2021 6:31 PM
- Journalist: S. Jayavikraman
Iso Butanol, a chemical of the oxo alcohol family has witnessed an astonishing tumble since the mid of November which has extended till the last month of 2021. Iso Butanol prices have drastically dropped, following the ease in supplies amidst stagnated demand after the end of festive season in the domestic market.
Oxo-alcohols prices witnessed a consistent upward climb till September, due to shortage in supplies from the west and soaring freight rates. Although the presence of two local players, Andhra Petrochemicals and BPCL, substantially assisted in combatting the supply crises in the local market. On the other hand, the scenario also acted as a silver lining for these players to extend their profit margins at times of strong demand.
As Saudi Arabia is one of the major suppliers of Iso-Butanol to India, arrival of delayed cargoes since the beginning of November have flooded the domestic market with supplies. Thus, compelling domestic manufacturers to mark their products at a lower price in order to initiate offtakes. In India, Iso Butanol prices have dropped by nearly 15% from 19th to 3rd December. Manufacturers have revealed that the sudden slowdown in demand post festive season has led to higher inventories of the product.
As per ChemAnalyst, “Fall in Iso Butanol prices has finally eased the inflationary pressure that has been built upon its values since the beginning of August. As the demand for the product is unlikely to pickup in the near term its prices are expected to fluctuate in a stable to narrow range. Besides, dwindling fundamentals of oxo alcohols in the regional market and Europe is also likely to influence the values in India as well. Meanwhile, the threat of Omicron virus has stressed traders over the uncertainty in supplies, hence there is a likelihood that they may cater to additional purchases in order to abate any hurt to consumer sentiments.”