Rising Demand From the Varnish Industry Impact MIBK Prices in the USA
- 07-Feb-2023 5:33 PM
- Journalist: Peter Schmidt
It is observed that the tight supply situation in the USA is adverse, and the Methyl Iso Butyl Ketone (MIBK) market intends to concede profits. The high industrial operating rate in the downstream MIBK market also rose with the demand for raw Acetone. Increased market sentiment to drive up feedstock Acetone prices, along with the strong concentration of the supply of goods and optimistic attitudes of the items' owners, was observed in the USA region. The procurement of varnishes and lacquers was high, putting pressure on the utilization of MIBK, thus increasing its prices. The market was highly export-driven, as sourced by the traders, who also stated a rise in product quotations.
The market value of MIBK increased in the USA during the first week of February 2023, with prices ranging at USD 1922/ton FOB Texas as per ChemAnalyst Research Team Data with fluctuations in the production cost. In addition, the logistics cost is moderate, and the trade price is rising. The feedstock Diacetone Alcohol cost also rose at present in the regional market.
The raw material factory repeatedly increased its price, and the market showed indications that downstream demand was improving. The market was significantly boosted in response to the concentration of factories, and commodity holders' sentiment pushed the product prices higher. The intention of low-price shipment was not firm, and the market negotiation price rose.
The key pricing assessments for the USA and international export pricing for MIBK increased market sentiments. The stockpiling of MIBK seemed to plummet with increased purchases from the downstream gums and resins market. US reshoring of supply chains is set to be limited by increasing costs, putting pressure on the price of MIBK. With a global fluctuation in the petrochemicals market, the prices of the downstream derivative product also increased, impacted by the market trading sentiments.