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Positive Feedstock Influence the Chinese Isobutylene Market

Positive Feedstock Influence the Chinese Isobutylene Market

Positive Feedstock Influence the Chinese Isobutylene Market

  • 09-May-2022 6:17 PM
  • Journalist: Xiang Hong

Mumbai (ChemAnalyst) - For a long time, the global elastomer segment has been hindered by inflationary pressures and market volatility caused by various factors. According to the latest ChemAnalyst data, "Isobutylene has risen again in the Asian Market" during the month of April 2022.

The main reason for these positive price revisions was a sudden rise in crude oil value, which put inflationary pressure on global converters and producers. In Europe and US, escalating crude oil and Natural gas remained the critical reason for such price trend.

Similarly, In the Chinese market, prices of Isobutylene have continued to climb since April owing to the surge in crude oil value, which put upward pressure on the Naphtha and Raffinate cost, which further weighs on the feedstock Tertiary Butyl Alcohol costs.

Furthermore, the rise in Isobutylene prices has also been supported by the spiralling demand from the end-user sector. Isobutylene is used as a monomer to fabricate various polymers, including Butyl Rubber and Polyisobutylene. Prices of Isobutylene in China increased by 4% in April (ChemAnalyst data shows)

In addition, China's factory activity fell at a faster rate in April as widespread COVID-19 lockdowns halted industrial production and disrupted supply chains. Consequently, raising concerns about a sharp economic slowdown in the second quarter that will weigh on global growth.

Besides, the global supply chain has worsened as Russia's invasion in Ukraine, coupled with pandemic restrictions, caused even longer delays at ports, which drove up maritime costs, thereby resulting in the supply scarcity on the domestic and international.

As per ChemAnalyst, "Prices of Isobutylene are forecasted to rise in the forthcoming weeks due to further increase in the demand from the downstream industries. Additionally, the raw material cost has obstructed Chinese market dynamics for several commodities, especially Isobutylene. However, as per Insights, Current market dynamics are primarily impacted by raw material prices rather than being affected by supply restrictions".

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