Supply Concerns Threaten the n-Propanol Market Players in China
- 11-May-2022 6:22 PM
- Journalist: Li Hua
Shanghai, China: The n-Propanol market in China rebounded this week after staying down for a long time. The Solvent's uphill pricing was the aftershock of the EU ban on Russian Crude oil, as the supply fears heightened amongst the market players.
The upstream Crude oil imports were higher by approximately 20 percent in the previous month. ChemAnalyst's market sources revealed that the domestic demand has faltered amidst tightening epidemic-related constraints in the main Chinese hubs.
However, the Crude prices reverse coursed this week, and the inventories fell short across the domestic market. The Brent crude futures traded at more than USD 113/barrel, while U.S. West Texas Intermediate (WTI) crude June contracts hit 110 US Dollars per barrel. Accordingly, this week, the crude oil market ruled the downstream n-Propanol pricing trend, taking pressure from the prevailing conflict in the eastern European region.
Meanwhile, the Zero Covid Policy has been posing a severe threat to trade activities. Hundreds of cargo ships at ports are stranded, affecting freight rates and worldwide inflation. Because of the high Covid limitations, several factories have difficulty maintaining momentum during this timeframe.
According to a Shanghai-based trader, a Shutdown in the country's financial capital might significantly impact truck services, with transport costs rising at an unforeseen rate. Ultimately, the consumers are to cover the additional shipping and storage costs.
n-Propanol is a widely used green solvent in the paints & coating industry, which gets support from the construction sector and automobile sector. As per our insights, the consumption from the construction sector is inclined on account of the summer season, which is predicted to improve the demand fundamentals weekly.
Conclusively, the n-Propanol market might stay on an upward price trajectory, as per the recent ChemAnalyst Data. The widespread lockdowns are expected to halt industrial production and disrupt supply chains in the coming weeks. As the Russia-Ukrainian war and the ongoing pandemic in China will probably not ease any sooner, the Solvent might continue in a curtailed market.