Prices of Oxo Alcohols pushing up in China amidst wider movement restrictions
- 22-Mar-2022 3:16 PM
- Journalist: Li Hua
Due to pandemic-related uncertainty, the Chinese petrochemicals market has begun to struggle, and traders are now anxious about future demand from the domestic market. Oxo alcohols prices have begun to rise on the back of growing crude oil prices and are stable to firm offtakes from the domestic market, according to ChemAnalyst data. Imported n-Butanol prices are rising as a result of consistent price increase in Taiwan and Saudi Arabia, which are impacted by rising global crude prices.
The Chinese market recently had a strong bounce as a result of the country's hosting of the Winter Olympics and the Spring Festival, which injected a positive vibe into the country. In the meantime, some cases of COVID have surfaced, and the government is attempting to contain this revival. Later, China's zero-tolerance policy took effect, restricting movement and imposing lockdowns in several parts of the country. Key participants in the worldwide market and industry specialists, including pioneer economists, frequently criticize China's zero-tolerance policy since it is said to be affecting global economic recovery. However, being the world's largest exporter, China recovers from pandemics significantly more quickly than many other countries. Not just crude oil, but growing energy prices are also causing anxiety among global major players, since the ongoing conflict between Russia and Ukraine has pushed up global coal prices, owing to logistical challenges and four rounds of sanctions imposed by Western Europe and Asia on Russia.
According to ChemAnalyst, developing pandemic-related uncertainties are anticipated to hamper the country's actual economic recovery, and overall pricing dynamics for Oxo Alcohols are likely to remain high for some time. However, the rising cost of construction-related raw materials is causing builders to postpone future purchases. To conclude, prices in China are projected to remain strong until the market sees a significant decrease in the global crude oil value.