Methyl Isobutyl Ketone prices in China continue to showcase volatility
- 07-Apr-2022 6:49 PM
- Journalist: Nina Jiang
Methyl Isobutyl Ketone (MIBK) witnessed fluctuation during March 2022 in China. The price change in upstream Crude, feedstock, and demand from the end-use industries resulted in the volatility in Methyl Isobutyl Ketone prices.
Methyl Isobutyl Ketone is a colourless liquid produced by condensation of Acetone, a downstream product of Benzene and Propylene. Owing to the Russia-Ukraine war, the values of Upstream Crude witnessed a massive rise, followed by a varying trend in the previous month. This change in upstream Crude oil price affected the feedstock Benzene, Propylene, and Acetone which had a significant impact on the costs of Methyl Isobutyl Alcohol.
However, the rising demand from the end-use automotive, paint, and adhesives industries initially laid the foundation for the increasing MIBK price trend. Since MIBK is an antiozonant additive used in the production of rubber for manufacturing tires, the increased demand from the downstream Tire industry drove the MIBK market upward. Furthermore, the global disruption in container shortages has exacerbated the aforementioned scenario.
During the later stages of March, Methyl Isobutyl Ketone prices dropped and then stabilized by the week ending 31st March due to the dropping demand from the domestic market. The rising number of Covid cases and the ongoing closure of affected cities, and the suspension of trading activities have resulted in high inventory levels, which has impacted the pricing dynamics. Henceforth, Methyl Isobutyl Ketone was settled at USD 2225/tonne in China on 6th April.
China also imports Methyl Isobutyl Ketone from Far east Asia, particularly from Japan and South Korea. The recent resurgence in the covid cases has hampered trading activities which further discouraged import availability. Another key factor at play has been the truck shortage which culminated in transportation issues.
According to ChemAnalyst, “Methyl Isobutyl Ketone price is estimated to follow an upward trend in the forthcoming weeks. An estimated delay in supply due to port congestion might cause the price to rise. On the other hand, the demand from downstream industries may pull up if there’s an ease in shutdown. Besides, the constant rise in upstream Crude oil might affect its derivatives, which may subsequently affect the Methyl Isobutyl Ketone market.”