The n-Propanol Market in the Asia-Pacific Region Continues to be Lackluster
- 22-Nov-2022 4:32 PM
- Journalist: Peter Schmidt
The n-Propanol market in Asia-Pacific (APAC) remains uninteresting. Over the past few months, the n-Propanol market in this region has been relatively low due to negative supply-demand dynamics. There is little demand for n-Propanol due to the region's sluggish economic expansion. The Asia-Pacific region, which accounts for more than half of global demand, is one of n-Propanol's largest markets.
Over the past few months, the market has been experiencing a downward trend that will likely continue soon. Paints and coatings, adhesives and sealants, and cleaning products are the primary end-use industries for n-Propanol in the region. However, the n-Propanol market's expansion in this region is being hampered by a slowdown in demand across all of these sectors.
One of the most significant influences on this region's demand for n-Propanol is the slowdown in the Chinese economy. Since China is the region's largest market for n-Propanol, it is anticipated that the country's economic slowdown will have a negative impact on the market. Buyers, who are largely operating on hand-to-mouth inventory levels, have little interest in purchasing. Producers are having trouble increasing sales due to a lack of interest from the primary Chinese market.
Participants in the n-Propanol market in the rest of this region remain watchful. This is because there is a lack of clarity regarding the future demand outlook. Additionally, the market is still being weighed down by the excess inventory levels from the previous year. Over the past few weeks, prices have remained steady, but they are expected to fall soon. However, it is unlikely that this will last very long.
Despite the challenging operating environment, production in the region has remained steady on the supply side. As a result, inventories have remained high, putting downward pressure on prices.
In recent months, prices of n-Propanol in the APAC market have been decreasing in line with these factors. Additionally, prices are likely to remain under pressure in the near future unless either the supply or demand dynamics significantly alter.
Further reduction is expected in the close term, as purchasers are probably not going to procure stocks in front of the Lunar New Year occasion in February. However, as inventories begin to decrease, ChemAnalyst anticipates prices to reach their lowest point in January 2023.
On a FOB-Qingdao basis, this product was traded in China on November 18, 2022, for USD 1,160 per MT.