Iso Butyric Acid prices under cost pressure in China !
- 05-Apr-2022 8:59 AM
- Journalist: Li Hua
The prices of Iso Butyric Acid continued to stay on an upward price trajectory this week in the world's second-largest economy, China. The uptrend owed to the most extreme city-wide Covid-19 lockdown in two years. On Wednesday, the Chinese ministry reported 8,825 new infections across the country, which included 5,987 cases in the world's busiest shipping port and global financial hub, Shanghai.
The resurgence of the COVID-19 pandemic in China has significantly influenced the worldwide Iso Butyric Acid industry. Several countries worldwide implemented strict restrictions, severely limiting the downstream electrical and electronics productions, a primary end-user industry of Iso Butyric Acid. These industries are seeing a dramatic drop in demand and production because of decreased discretionary expenditure, supply and transportation constraints, manufacturing closures, and a global slowdown in infrastructure investment.
On the other hand, Upstream Crude Oil prices dropped at the start of Asian trading on Sunday. The UAE and the Iran-aligned Houthi group have welcomed a cease-fire that would end military operations on the Saudi-Yemeni border, easing some concerns about potential supply disruptions. This week's early losses follow a drop in oil prices of approximately 13% last week, the worst weekly drop in two years when US President Joe Biden announced the largest-ever release of US oil reserves. Thus, Brent crude futures had fallen USD 1, or 1%, to USD 103 per barrel. At the same time, the West Texas Intermediate crude futures slid approximately 84 cents to USD 98 per barrel or 0.9 percent.
As per ChemAnalyst," Iso Butyric Acid prices may stay buoyed in Asia despite the Crude futures rallying downwards. Thriving downstream pharmaceutical activities, growth in the consumption of Agrochemical intermediates, and other food-chemical industries might be the driving factors for the Iso Butyric Acid prices. Additionally, increasing purchases of textiles are also expected to boost the demand for the Iso Butyric Acid market in the upcoming weeks."