The geopolitical impact on upstream crude oil pushes up the derivative solvent prices

Being an imported commodity from Europe, the prices for Methyl N-Amyl Ketone displayed an upsurge in North America and Asia due to lingering shortage in supplies of feedstock Acetone and Butyraldehyde prices and upstream Crude oil. The ongoing war between Russia and Ukraine has already become a concern for the global players of Crude oil. They were subsequently looming supply chain disruptions amid solid demand from the international market, which has driven the crude oil prices to hover around USD 120 per barrel.

Soaring crude oil prices being influenced by the ongoing conflict of Russia and Ukraine frightened the global converters, particularly the big consuming countries like China, United States, India, South Korea, and Japan, where downstream derivatives are becoming more expensive week after week. As per recent ChemAnalyst data, international manufacturers like Eastman, KH Neochem, Xinhua Chemical, MG Chemicals have raised offers for their product lines of Methyl N-Amyl Ketone in the regional market to safeguard their margin. Also, demand fundamentals for the product have started rising because of firm offtakes from the downstream paints and coating manufacturers, supporting the demand from the downstream construction industry. This summer season might aid in the improvement of demand patterns for construction chemicals. Hence, the domestic manufacturers amongst these countries have begun to benefit from increased upstream crude oil prices and improved demand from the domestic paints and coatings sector amid the technological advancements and the rising production of automobiles compared to the previous year.

As per ChemAnalyst, “Methyl N-Amyl Ketone prices are expected to keep pace with their rising trend for an extended period in North America, Asia, and Europe, as the domestic demand fundamentals will take time to decline in these regions. In the meantime, upstream Crude oil value is also forecasted to rise beyond the benchmark of USD 200-250 per barrel soon in the forthcoming weeks, which will also stimulate optimism to the product prices across the global market.”