Methyl Isobutyl Ketone Prices Slump Amidst Rising Pressure Between Taiwan and China
- 09-Aug-2022 3:56 PM
- Journalist: Xiang Hong
Methyl Isobutyl Ketone prices have been witnessing a downtrend in China. The poor demand from the major downstream manufacturers has been pulling down the Methyl Isobutyl Ketone pricing in the local market. Furthermore, the tension between China and Taiwan backs up the price drop.
China imports Methyl Isobutyl Ketone from South Korea and re-exports to Taiwan and India. The rising tension between China and Taiwan is affecting trade activities. After the visit of the US House Speaker Nancy Pelosi, China declared sanctions on export to Taiwan. The slow purchase from the domestic market coupled with the ample availability of the product resulted in the declining price trend of Methyl Isobutyl Ketone. The factory price of Methyl Isobutyl Ketone also dropped in China, owing to the sluggish trading and weak demand.
The import of Crude oil is strengthening in China; hence price trend of upstream Crude is declining. Despite the reducing price of upstream Crude, the feedstock Acetone market is gaining strength in the domestic market. Even though the raw material values are rising, the Methyl Isobutyl Ketone price follows a downtrend. Since the transactions depend on the demand, the lack of terminal orders is dragging down the Methyl Isobutyl Ketone pricing. In addition, the slumping purchase from the downstream rubber, chemicals and other manufacturers negatively impacted the Methyl Isobutyl Ketone market.
Furthermore, the price of the imported cargoes from South Korea and Japan was low as their manufacturers were in a hurry to sell off their stockpiled products and start a new production. When interviewed, one of the China-based traders quoted that the fear of global recession is another reason that further pulls down the Methyl Isobutyl Ketoneprice trend.
As anticipated by the ChemAnalyst team, the price of Methyl Isobutyl Ketone might rise in the domestic market. The tension between China and Taiwan will likely increase and may lead to war, inflating the Methyl Isobutyl Ketone pricing. Also, some of China's manufacturing factories will likely have maintenance in the coming weeks, resulting in a tight product supply.