Positive Feedstock Propels the Tertiary Butyl Alcohol Prices in the Global Market
- 05-Jul-2022 4:56 PM
- Journalist: Kim Chul Son
Tertiary Butyl Alcohol prices have significantly risen in the European market during the past few months. According to the data, a substantial price boost of around 2.8% has been observed in the week ending 1st July because of consistent inflationary pressure on producers with the continual rise in raw material costs. In addition, the Russia-Ukraine war has been pushing up the cost of production across the European market owing to supply disruption of upstream crude oil in the regional market, especially in Germany.
On the other side, demand for Tertiary Butyl Alcohol in the paints and coating or solvent industries has been constant. In contrast, the demand-supply remained narrow enough to meet the market's overall need. Additionally, rising input costs are the other factor for the surged prices of Tertiary Butyl Alcohol in the domestic market.
At the same time, in the Indian market, the prices of Tertiary Butyl Alcohol have witnessed an upward momentum backed by high input costs and overhauled downstream demand. As per the latest insights, the price trends of Tertiary Butyl Alcohol have significantly hiked by approximately 4.1% in the first week of July , compared with the preceding months. Besides, the rising cost of the raw material, Isobutylene, has pushed the manufacturing cost up and considerably weighed on the increase in profit margins on Tertiary Butyl Alcohol market values.
However, in recent months, end-user demand has been vague due to variations in feedstock Isobutylene cost caused by the Russia- Ukraine war coupled with rocketing inflation. Furthermore, due to China's Zero COVID Policy, breaks in the on-loading and off-loading chain have significantly increased maritime costs and severely disrupted supply chains, altering downstream market demand. However, with the revival of the construction sectors, muted demand is gradually improving, supporting higher Tertiary Butyl Alcohol prices in the domestic market.
According to ChemAnalyst analysis, "the price discussions of Tertiary Butyl Alcohol may follow an upward trajectory in the coming weeks, owing to the volatile raw material costs Isobutylene. Also, the upward pressure from the downstream paint and coating, solvents industries will sustain overall buoyancy in the Tertiary Butyl Alcohol market value across the Indian and German market."