The market showed mixed momentum through March, with early caution among buyers followed by firmer sentiment mid-month. By late March, demand stabilized, and early April saw renewed buying interest amid tighter prompt availability, creating upward pressure on propionic acid.
Upstream dynamics were a key driver. Rising crude oil prices, which moved above $xxx per barrel during March, significantly increased feedstock ethylene costs. This pushed production expenses higher for propionic acid manufacturers, forcing suppliers to maintain firm offers and limiting price corrections.
The Middle East war further intensified supply challenges. Strikes on critical infrastructure disrupted energy flows, while global oil supplies reduced by nearly xx million barrels per day. These disruptions tightened upstream availability and created ripple effects across petrochemical markets, including propionic acid.
Global logistics were also impacted. Shipping through key routes such as the Strait of Hormuz faced disruptions, increasing freight charges,...
