The Polyisobutylene market persists in its upward trend in the global market
- 13-May-2022 8:00 PM
- Journalist: Nicholas Seifield
New Delhi, India: Since the beginning of May, the Polyisobutylene market has continued to rise due to the burgeoning cost of raw materials. The escalation of crude oil prices globally amid the Russia-Ukraine war caused a price swing in the Naphtha, impacting feedstock Isobutylene prices.
The Chinese market has been experiencing a shift in market dynamics since China's covid situation has escalated. The country has been going through the worst hit of a pandemic since 2020, which has lowered the overall demand fundamentals for various commodities, including Polyisobutylene. However, the sharp growth in upstream value and raw material costs, on the other hand, has pushed Polyisobutylene prices higher in the local market.
Furthermore, China relies heavily on South Korea to import Polyisobutylene, roughly 30%, due to war and the prolonged pandemic outbreak has impacted the trade activities, resulting in the high maritime cost backed by container shortage, which led to the high pricing of Polyisobutylene in China. ChemAnalyst data shows that the prices of Polyisobutylene have marginally increased by 1-2% in the starting month of May.
On the other hand, the USA and Europe showed a similar trend owing to the escalating demand from the end-user Construction and automotive industry. Furthermore, another factor affecting the prices of Polyisobutylene is the Energy crisis that has led to the high production cost of Polyisobutylene, proportionally affecting its market sentiments in the regional market. As per the resources, several manufacturers of Polyisobutylene have raised their prices due to the energy shortage and the high feedstock prices. As per ChemAnalyst, prices of Polyisobutylene were inclined by 2% in US and European markets.
According to ChemAnalyst, "In the upcoming week, prices of Polyisobutylene are likely to rise in the global market due to further escalating demand from the end-user Construction and automotive sectors. In the meantime, crude oil prices are anticipated to surge, further impacting the upstream Naphtha prices. Furthermore, trade activities and production cost may negatively influence the Polyisobutylene cost across the worldwide nation."