The upward movement followed a relatively calm February, when prices remained range-bound amid steady operating rates and balanced supply-demand conditions. However, the market sentiment changed sharply following the xx February xxxx strikes on Iran by the United States and Israel, which disrupted global energy and petrochemical markets.
A key factor driving the increase was the rise in feedstock ethylene costs. Ethylene prices moved higher in response to increasing crude oil values, significantly raising production costs for propionic acid manufacturers. As input costs surged, propionic acid producers were compelled to maintain firm offers to protect margins.
Crude oil markets experienced strong upward pressure due to disruptions in the Middle East. The Strait of Hormuz, which handles nearly xxx of global petroleum flows, witnessed significant tanker movement disruptions. This led to a sharp rise in energy prices, directly impacting petrochemical production costs including propionic acid.
The...
