The Uptick in Trading Activities Bolsters the Global iso-Butanol Prices
- 15-Sep-2022 3:28 PM
- Journalist: Nicholas Seifield
Hamburg, Germany- In the global market, iso-Butanol prices started to gain stance with recovering demand from the downstream Paint and coating industry. As Germany is the major exporter of Iso Butanol, sufficient supply from the region to the Asian market capped the product's trading for the past few months. However, the utilization of stocks from the downstream ventures in Europe and the US uptick the pricing dynamics.
Utilization of existing inventories and rising demand from end users disrupted the supply/ demand fundamentals, resulting in a price hike. The consumption of iso-Butanol from the downstream market also started to surge, and suppliers began to trade the product in bulk. The value chain of Oxo alcohol, including n-butanol, iso-Butanol and 2-Ethylhexanol, is accelerating with strong market fundamentals and vigorous trading activities.
The demand for iso-Butanol from the Paint and coating industry in the Asian market surged, resulting in healthy imports from Germany and the US. However, logistics remains the major issue for cargo transportation, with delayed shipping cargoes due to port congestion. For trading of iso-butanol within the European region, Ships sailed with a reduced cargo load due to the lower water level of the Rhine river prompted by high temperatures.
Propylene costs surged across the US on a slight upward trend in the feedstock market because of higher global demand trends and continuous product availability. In the meantime, supply availability of iso-Butanol was adequate in the US because of a dreary buy suggestion for exported Iso Butanol.
According to ChemAnalyst, the price of iso-Butanol will increase in the forthcoming weeks with the boost in demand from the downstream Paint and Coating industry. Limited spot cargo availability and firm feedstock prices will further push the iso-Butanol prices across the globe. Prices are still lower, but the cost will gradually increase with the upcoming festive season. However, logistics and transportation costs will decrease further due to sufficient container availability and delays in shipping at the ports.