U.S. Isobutyric Acid Market Performs Subpar This Month
- 23-Feb-2023 7:03 PM
- Journalist: Rene Swann
Isobutyric Acid prices have dropped significantly in the U.S. this month, making it more affordable for businesses to purchase the Acid. According to the observations by ChemAnalyst, from the last week of January 2023, the cost of this commodity has got lowered by approximately 4.11% per M.T.
The price drop is credited to a combination of market forces, such as an increase in production and a decrease in demand. This is great news for anyone looking to purchase Isobutyric Acid, as the lower cost could mean savings for businesses.
Isobutyric Acid is an important industrial chemical used in many processes and products, including food items and cosmetics. It is a clear liquid with a light odor, and the oxidation of Isobutyraldehyde, a byproduct of propylene hydroformylation, produces Isobutyric Acid. The Acid also has a wide range of applications, including pharmaceuticals, flavoring, and fragrances.
The decline in U.S. Isobutyric Acid prices this month can be attributed to various factors. The drop in prices is thought to be due to an increase in supply as manufacturers look to capitalize on the lower costs. As more and more suppliers enter the market, prices are likely to continue to drop. This could potentially lead to further reductions in costs for those relying on the chemical for their industrial needs.
Rising freight costs are also having an impact on exports of Isobutyric Acid, lead more accumulations of this commodity in inventories, and to clear out stocks, suppliers are offering reduced quotes to domestic consumers.
Furthermore, the cost of production for Isobutyric Acid has been decreasing. Many suppliers have been able to reduce the cost of raw materials needed to make the chemical, resulting in a lower production cost. This lower cost of production has allowed suppliers to reduce prices to remain competitive.
As per the firm’s market analyses, in the third week of February, the cost of Isobutyric Acid stood at around USD 1,700 per M.T. on FOB – Houston basis.