Surging price of Butyraldehyde in the Indian market
- 23-May-2022 4:38 PM
- Journalist: Jai Sen
The oxo alcohol market is flourishing, and demand for materials are good and rising continuously in the domestic market. In the previous month, the prices of an oxo alcohol Butyraldehyde, also known as Butanal, were firm in the Indian market. However, in May 2022, the price of Butyraldehyde surged 4.4% with an increment of INR 10000 in the April month values, according to Chemanalyst data. This surge influenced the prices of its downstream synthetic resin, solvents, and plasticizers in the market.
Experts say the war between Ukraine and Russia resulted in inflationary pressure on Crude Oil values which continuously impacted fuel prices and disrupted the value chain. It also resulted in escalated freight costs of raw materials along with high transportation and production costs of Butyraldehyde. However, Propylene, a raw material of Butyraldehyde prices decreased after the announcement of US strategic oil reserves.
The demand for Butyraldehyde escalated in the plasticizer and paint industry due to increased activities in the construction sector. The construction costs of warehouses increased in the central Indian cities. In recent years, the government has been providing subsidies to consumers for reduce the harmful pollutants emission from the environment and reduce their carbon footprints. Due to these initiatives, the demand for EV vehicles has escalated in the Indian market. It also increased the demand for plasticizers in the automotive sector.
Chemanalyst expert says, "The market demand of Butyraldehyde in its downstream plasticizer, resins, and paint industries is anticipated to be consistent, and the price trend of Butyraldehyde is likely to remain upward in upcoming months. The values are likely to boost further as the freight charges are increasing continuously due to the increasing fuel prices. The production costs of Butyraldehyde are likely to get impacted further and escalate in the domestic industries due to the reason mentioned above."