Will the tight supply of Tertiary Butyl Alcohol meet the growing demand in Europe

In recent weeks, the Tertiary Butyl Alcohol market has been consistently on an uptrend due to its surging demand as a solvent in the pharmaceutical industry. Soaring feedstock Acetone prices created an imbalance in the market dynamics, resulting in a supply chain disruption in the global market.

In the Asia-Pacific region, rising demand for Solvent from the end-user pharmaceutical sector has put an upward pressure on the Tertiary Butyl Alcohol cost. In addition, being the top exporter of Tertiary Butyl Alcohol, China has faced difficulties in the production and trade activities amid the escalated Covid-19 outbreak. The strict lockdown restriction and labour shortage continued to impede the offloading and onloading activities, leading to the exports falling, resulting in inadequate inventory levels in the domestic and international market. According to ChemAnalyst, Tertiary Butyl Alcohol FOB Qingdao prices in China were settled around at USD 1595/MT during April.

Likewise, the European market sentiments witnessed an increasing pattern in the Tertiary Butyl Alcohol cost as feedstock Acetone prices rose. Furthermore, because of Europe's ongoing energy crisis, many key players are reducing production. Aside from production, the war between Russia and Ukraine has impacted trade routes and freight charges, resulting in a supply shortage in the European market. Moreover, the US sanctions against Russian companies squeezed several entities and further crippled the supply chain. Therefore, the prices of Tertiary Butyl Alcohol in Germany were inclined by 4% on a month-on-month basis during April.

As per ChemAnalayst, "The prices of Tertiary Butyl Alcohol are anticipated to rise in the upcoming weeks due to further increase in demand from the downstream pharmaceutical industry. Additionally, trade activities might further impact the supply chain, leading to a shortage of products and causing the prices to increase in the worldwide market. In addition, high feedstock Acetone cost may impact the prices of Tertiary Butyl Alcohol".