Saudi Arabia’s Butyl Glycol Price Falls in June
- 16-Jun-2022 3:08 PM
- Journalist: Timothy Greene
Jebel Ali, Saudi Arabia: Over the past two weeks, the Butyl Glycol market has been witnessing bearish market sentiments across the Saudi Arabian market. The domestic as well as international Butyl Glycol traders, have experienced ample supplies with higher-than-expected inventory levels. As a result, the soaring demand from the previous month eased with feedstock abundance in the domestic market.
The Saudi Arabian oil company: Aramco has demonstrated strong performance since the first quarter of 2022 and expanded its presence in Europe and Asia. Even though economic conditions have improved much, the outlook remains uncertain owing to numerous macroeconomic and geopolitical factors, Aramco President and CEO Amin H. Nasser commented, in an interview. Meanwhile, Aramco maintained its strong track record of supply reliability by delivering crude oil and other derivative products, regardless of disputes and challenges caused by the Russia-Ukraine crisis in the East European region and covid worldwide.
The trader’s purchasing activity declined due to the existing inventories. Also, the terminal consumption has significantly weakened compared to the previous month. The players have implemented a price correction to their Butyl Glycol product lines with no supply-side concerns. Thus, according to the ChemAnalyst Database, the Jebel Ali price discussions for Butyl Glycol showcased a heavy price drop of more than 10 per cent towards the end of the third week of June, on a FOB basis.
As per ChemAnalyst anticipation, the price dynamics for Butyl Glycol in the domestic market of Saudi Arabia are expected to stay down for the coming weeks. The primary reason is the abundance of raw materials to the downstream solvent players, despite stable to moderate terminal demand fundamentals. Also, with no scheduled turn arounds, the country’s production activities are estimated to be robust. Thus, the domestic petrochemical market scenario is likely to showcase sluggishness in the forecasted timeframe.”