With prices easing in most regions, Global n-Butanol Market showcasing a Dynamic Change
- 04-Apr-2022 5:12 PM
- Journalist: Yage Kwon
The global rise in raw material costs has been pressuring key players, compelling them to perform frequent price revisions to sustain profitability. However, global crude oil value has started showing some ease in the market, making it more feasible to produce and sell cargoes at a comparatively cheaper value. Nevertheless, the Russia Ukraine conflict, which was the prime factor behind the steep rise in prices of global crude oil and natural gas, is still a major concern for the global market. Despite several sanctions and attempts of interference by different nations, peace talks haven’t been successful somehow, and the conflict is still a centre of global trade and geopolitics.
As per the ChemAnalyst data, under the influence of significant ease in the global crude oil value amid declining queries from the downstream market, the n-Butanol price has tumbled in Asia. The data shows a decline of around 5.5% and 3.6% in India and China during the last week. However, there are different reasons behind these price changes; like in China, the resurgence of COVID has put movement restrictions across the major parts of the country, where daily average new cases have crossed the mark of 7000 in China. Further, China’s zero-tolerance policy resulted in strict movement restrictions, affecting trade activities across major ports and putting downward pressure upon n-Butanol prices in the country. Meanwhile, in India, key players like Andhra Petrochem have reduced their offers for new bulk purchases after seeing wavering demand and fading market sentiments.
Discussing other markets, ChemAnalyst data shows marginal ease or overall stability in the price of n-Butanol across the USA and Germany. As per the insight, German manufacturers have not received any calm from rising natural gas prices, as despite the decline, prices are still hovering at a very high value; where the government is urging citizens to use public transport rather than personal vehicles in order to reduce the usage of natural gas that majorly comes from Russia.
As per the ChemAnalyst assessment, prices are expected to remain stable to dull in forthcoming weeks across the global market, as the demand fundamentals are likely to remain unchanged while availability is anticipated to remain adequate to satisfy the overall need. In addition, recently, the USA has released their strategic research to calm the global crude oil value, which has already made a significant impact on the global market