Category

Countries

Will the n-Butanol Price be Impacted by the Soaring Inflation Rate Across the Globe?

Will the n-Butanol Price be Impacted by the Soaring Inflation Rate Across the Globe?

Will the n-Butanol Price be Impacted by the Soaring Inflation Rate Across the Globe?

  • 13-Oct-2022 5:00 PM
  • Journalist: Peter Schmidt

The global market uncertainties and increasing inflationary pressures led to an upward input cost pressure on the n-Butanol pricing dynamics in October 2022. Meanwhile, the weak cost support from the downstream market has led to output tension amongst traders this month.

The n-Butanol prices demonstrated an overall plunging trajectory in Quarter 3 on the back of lower consumer buying sentiments in the European market. Besides, with the beginning of October 2022, n-Butanol prices expanded in Germany due to production cuts and high input cost pressure. The rising upstream natural gas prices due to hampered supply from Russia supported the price rise of n-Butanol in the regional market at the end of September. The sharp rise in natural gas prices has bolstered electricity prices, thus abruptly increasing the overall cost of production in the region for the commodity. As a ripple effect, squeezed availability of stocks and demand fundamentals remained unchanged.

As per the market participants, the German n-Butanol prices have been negotiated with an increase of 2% in September 2022.

The strong US dollar amidst high inflation weighs on import demand for n-Butanol in the Chinese market in October's first week. Moreover, China's petrochemical trade within Asia is currently subdued amid the country's week-long national holiday (1-7 October). Meanwhile, the drop-in freight rates also caused downward momentum for n-Butanol in the APAC region. According to the trader, the freight rate fall resulted from the falling overseas trade in China since September 2022.

Manufacturing activity in Asia weakened in September 2022 compared to the previous month because of waning export demand. Europe is dealing with an energy crunch, while high-interest rates are strangling US n-Butanol consumption.

As per ChemAnalyst anticipation, prices of n-Butanol may further show a surge in October owing to the demand from the downstream industries, such as the construction and paint & coatings segment in Europe. Moreover, international offers for n-Butanol are likely to show an elevation in the North American region, besides high energy values, impacting the product's prices. Therefore, n-Butanol market participants may increase the costs further amid strong demand fundamentals to escalate their profit margins in October.

24X7

Track Real Time Prices

Related News

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
European Coating Industries Ponder Over Record Surges in Butyl Acetate Prices
  • 20-May-2021 12:00 PM
  • Journalist: Robert Hume