Category

Countries

Varying Feedstock Cost Pressures the n-Butanol Prices in Asia

Varying Feedstock Cost Pressures the n-Butanol Prices in Asia

Varying Feedstock Cost Pressures the n-Butanol Prices in Asia

  • 27-Dec-2022 6:03 PM
  • Journalist: Motoki Sasaki

The n-Butanol market witnessed a fluctuating price trend in the APAC region, owing to the elevation in the domestic offers and escalating feedstock Propylene prices in India. Besides, in late December, n-Butanol prices dipped due to sluggish buying sentiments in the Chinese domestic market. Prices have fallen in the fourth week of December owing to the ease in the feedstock Propylene prices and sufficient inventories. Meanwhile, upstream crude oil price volatility impacted the pricing dynamics of the commodity during the week ending 23 December 2022 in Asia.

In India, the n-Butanol market has been supported by the crippled availability of stocks in the week ending 23 December 2022. The bulk purchases and increasing downstream output led to crippled availability for the product impacting the prices. Meanwhile, domestic producers raised the prices amid improving buying momentum in the downstream automotive and coating industry to sustain strong margins. In addition, feedstock Propylene elevating prices supported the upward trend for the product amid decreasing availability. Thus, the spot price of n-Butanol showed a significant increase of nearly 7% in the week ending 23 December 2022 in the Indian market.

Contrary to India, the n-Butanol prices in the Chinese market experienced a sharp drop in the fourth week of December 2022 due to lowered feedstock Propylene costs and inadequate demand in the market. According to the sources, the sanctions on Russian energy supplies have substantially affected China's commodity value chain. On the supply side, the production of n-Butanol was sufficient in China this week, and adequate stock availability led to bearish sentiment for the n-Butanol in the Chinese market. The overseas trading activity of China slumped due to persisting COVID curbs. Additionally, n-Butanol market players were seeking to destock the inventories, prompting price competitiveness among the producers. Therefore, the n-Butanol spot price hovered around USD 1123/tonne Ex-Shandong (China) with a weekly dip of 1% in the week ending 23 December 2022.

As per ChemAnalyst, prices of n-Butanol may further strengthen in the first quarter of 2023, owing to the improving downstream coating and automotive demand in the APAC region. In addition, expected fluctuation in the feedstock Propylene prices is anticipated to impact the costs of the commodity. As per the latest insights, the domestic market will likely get more positive on supply and demand in January 2023. Meanwhile, US WTI crude oil market fluctuations may significantly affect commodity manufacturing costs in the Asian market.

24X7

Track Real Time Prices

Related News

Will the n-Butanol Price be Impacted by the Soaring Inflation Rate Across the Globe?
  • 13-Oct-2022 5:00 PM
  • Journalist: Peter Schmidt
Surging n-Butanol Prices in India
  • 15-Jun-2022 5:11 PM
  • Journalist: S. Jayavikraman
With prices easing in most regions, Global n-Butanol Market showcasing a Dynamic Change
  • 04-Apr-2022 5:12 PM
  • Journalist: Yage Kwon
Indian Oil Corp Ltd Reports Huge Gains in Q1, Rolls Out Aggressive Petrochemical and Refinery Expansion Plans
  • 02-Aug-2021 6:00 PM
  • Journalist: Kamna Kapoor