Tertiary Butyl Alcohol Prices Demonstrate Mixed Sentiments Across the Globe
- 29-Aug-2022 5:46 PM
- Journalist: Shiba Teramoto
The price discussions of Tertiary Butyl Alcohol have witnessed mixed behaviour across the global market. The increased inflation rates and adverse currency trends have squeezed consumer sentiments and created enough pressure on the manufacturing index of several commodities, including Tertiary Butyl Alcohol.
According to the most recent insight, during the mid of August, Tertiary Butyl Alcohol prices began to decline in China. Demand for Tertiary Butyl Alcohol from the downstream paints and coating sector have bearish, as has the other facets for the price drop in the domestic market. According to the market sources, China's manufacturing activity contracted in August amid tighter Covid restrictions and the hot weather, which have impacted production activities. Hence, as a result, Tertiary Butyl Alcohol FOB Qingdao prices were settled at USD 970/MT during the same time frame.
Meanwhile, in India, prices of Tertiary Butyl Alcohol have continued to increase due to the high cost of production. Besides, the volatile energy costs have substantially impacted the domestic region's market outlook for Tertiary Butyl Alcohol. In addition, the mounting inflationary pressure and active inquiries from the downstream solvent industries have pushed the prices to their current value. Moreover, one of the downstream manufacturers, Berger paints, have raised its prices due to escalating raw material cost. Thus, Tertiary Butyl Alcohol CFR JNPT prices were offered at INR 147660/MT, with a surge of nearly 3.1% during August.
On the other hand, the sudden rise in energy prices has severely impacted Germany's economy, significantly affecting market sentiments for Tertiary Butyl Alcohol among the key industrial companies. The compact gas supplies from Russia's Gazprom amidst another round of maintenance have waned the supply fundamentals of the input material in the regional market. Furthermore, the continuing summer heat wave has deepened the energy crisis by reducing Rhine water levels and disrupting key transportation routes for energy shipments. Additionally, the report reveals that due to high energy prices, inflation in Germany has reached a record high of 7.5%. However, the demand from the downstream solvent industries has weak to stable amid the severe global economic disputes. Hence, as of result, prices of Tertiary Butyl Alcohol were quoted at USD 1210/MT in the week ending 26th August.
According to ChemAnalyst estimation, Butyl Alcohol will increase in the Indian and European markets due to the high input cost. Meanwhile, in the Indian market, demand for downstream Paint and Coating will improve amidst seasonal demand, which will fuel the Tertiary Butyl market value. However, prices will likely follow the downward trajectory in the Chinese market due to weak demand from the downstream industries."