Tetrahydrofuran Prices are Surging as Shortage Intensifies
- 13-Jun-2022 2:38 PM
- Journalist: Patricia Jose Perez
New Delhi: The Tetrahydrofuran (THF) market experienced an increase in market sentiments as downstream demand replenished. The downstream Polytetramethylene Ether Glycol (PTMEG) industries, which are used in the Polyester industries, account for the majority of the demand for Tetrahydrofuran. Polytetramethylene Ether Glycol (PTMEG), a BDO derivative produced in the United States and China, is in short supply. According to many market participants, an unanticipated government order request takes precedence over contract customers. Polytetramethylene Ether Glycol 's precursor BDO derivative Tetrahydrofuran (THF), according to sources, may be subject to a separate government contract to constrain supplies even more.
Tetrahydrofuran (THF) costs have climbed year over year due to limited domestic supply and import limitations. The shortage of imports has forced the market to tighten, which has prompted prices to rise. According to officials from some of the world's major pharmaceutical businesses, the problem is mostly due to facility closures and production reduction in China, the world's largest manufacturer of Tetrahydrofuran.
PTMEG's precursor BDO derivative Tetrahydrofuran (THF) may also be subject to a separate government contract, according to sources, to limit supplies even more. Due to a lack of BDO, by-product isocyanate, and other chemicals, downstream units may be idle. One downstream manufacturer had run out of BDO, while another was "struggling" because to a lack of isocyanate, according to a buyer. The 45-60 cents per pound contract was nominated for the second quarter because for BDO's scarcity and high demand.
Tetrahydrofuran (sometimes called Oxolane) is a cyclic ether class chemical molecule. It's a colorless, odorless liquid that dissolves in water and most organic solvents. Because of its strong polarity, it is a remarkably versatile solvent. The chemical sector, particularly polymer manufacturing, accounts for most of its uses.
According to ChemAnalyst. “Due to disruptions in global trade flows resulting from the Russo-Ukraine war, the American Tetrahydrofuran (THF) market has been radically changing in the first quarter of 2022. Domestic goods providers have thus become more significant and reliable. Multiple factors, such as growing logistical expenses, limited vessel space, and price increases in Asia, have considerably decreased Asian imports.”