Market of Methyl Isobutyl Ketone Remain Stable in China
- 26-May-2022 4:48 PM
- Journalist: Xiang Hong
Following a drop, the prices of Methyl Isobutyl Ketone remained stable this week in China due to the rise in raw material prices. The demand from downstream sectors, operating rates, and shipping pressure were the other reasons involved in the Methyl Isobutyl Ketone price change.
The prices of upstream Acetone progressed in the previous week owing to the rise in demand from the domestic market. This progress in raw material prices has stabilized the Methyl Isobutyl Ketone market. However, the demand for Methyl Isobutyl Ketone from the downstream industries was weak due to the decrease in buying sentiments from the terminal end. Thus, as the end users' consumption dropped, the overall production was reduced.
Moreover, the low operating rates in the downstream synthetic resin and nitrocellulose solvent sectors have been pulling down the prices of Methyl Isobutyl Ketone. In contrast, the disruption caused by the geopolitical tension ushered in the skyrocketing fuel charges; thus, the pressure on stockholders to revise their offers in order to protect their margin. As a result, the Methyl Isobutyl Ketone market remained stable in the domestic market, with the prices settling at approximately USD 1731/tonne on May 25th.
The pressure on the shipments due to the transport and lockdown restrictions in accordance with the Zero COVID policy has further impacted the Methyl Isobutyl Ketone pricing. When asked, one of the stockholders exclaimed that even though the Shanghai port is resuming normal operations, supply networks will deteriorate before they improve. Furthermore, investors have been relieved by Joe Biden's announcement that the US may consider lowering tariffs on Chinese imports.
According to the ChemAnalyst, "The Methyl Isobutyl Ketone market might push up in the coming days as the raw material Acetone prices are likely to grow. The demand from the downstream sectors may also rise due to the expected healthy buying activity in the domestic market. Moreover, the ease of Shanghai port could release the backlogs, and the supply chains are expected to get better."