Raffinate Market on a Bullish Run in the Global Market
- 28-Apr-2022 5:26 PM
- Journalist: Jacob Kutchner
Since the beginning of April, the Raffinate prices has been rising steadily in the global market because of the rising demand from the end-users for the fabrication of Methyl Tertiary Butyl Ether (MTBE). Skyrocketing crude oil value amidst the aftermaths of the war in the Eastern Europe has impacted the Naphtha cost and has consequently weighed on the high pricing of Raffinate across the globe.
Raffinate costs have pushed up because of growing urbanization, industries, and rising demand from MTBE producing sectors as a petroleum additive in the Asia Pacific region. Furthermore, as a significant exporter of Raffinates, China has encountered production and trade challenges as a result of an expanding viral outbreak. Truck and labour shortages continued to stymie logistical operations, resulting in lower exports and imports and insufficient inventory levels in both domestic and foreign markets. According to ChemAnalyst, the price of Raffinate in China increased by 1% month over month in April.
Similarly, the value of Raffinate on the European market has continued to rise as crude oil and naphtha prices have risen. Furthermore, several firms have reduced their production rates by 60-80% as a result of Europe's prolonged energy crisis and rising raw material costs, causing supply disruption in the region. Overseas shipping prices are rising, possibly as a result of the war's closure of several ports. The rerouting of ships has resulted in port congestion. Furthermore, US sanctions against Russian enterprises have put pressure on various entities, significantly crippling the market's supply chain.
As per ChemAnalyst, "Prices of Raffinate are anticipated to rise in the upcoming weeks due to further increased demand for MTBE manufacturing downstream. Furthermore, trade activities may be hindered due to the conflict, and Covid restriction might affect the supply chain, leading to the shortage of products and causing the prices to surge in the worldwide market. In the meantime, Crude oil prices are expected to increase, which might impact the Naphtha cost".