With the steep rise in feedstock value, Butyraldehyde prices on uptrend in the global market
- 11-Apr-2022 5:38 PM
- Journalist: Henry Locke
The Global Butyraldehyde market is witnessing an uptrend under the influence of a steep rise in upstream value coupled with improved demand from the downstream market. The sudden escalation in crude oil value due to the Russia Ukraine war injected inflationary pressure on consumers, which contributed to frequent price revisions by key players.
As per ChemAnalyst data, changes of around 3.5% and 2% have been observed in the price of Butyraldehyde during February-March 2022 timeframe in India and Japan, respectively. These price revisions were bolstered by rising crude oil value coupled with improving economic activities in the regional market. Meanwhile, pandemic-related uncertainties have been a matter of concern for global key players, as China is in lockdown again, while Europe and Canada are also witnessing a resurgence of another COVID variant. Furthermore, demand fundamentals for Butyraldehyde from the downstream 2-Ethyhexanol and other paints and coating segments maintained overall stability, influenced by consistently improving construction activities in Asia.
On the other side, the European market is witnessing a steep rise in prices of several petrochemicals’ commodities, including Butyraldehyde as well as oxo alcohols, owing to a steep rise in natural gas value taking pressure from Russia Ukraine conflict. As per the data, a rise of around 1.4% was observed for Butyraldehyde in Germany during the same timeframe due to an inadequate supply of upstream natural gas amidst stable offtakes from the domestic market. In addition, the Russia-Ukraine conflict is still going on, and no sign of the end of this war can be seen in the near term. Nevertheless, the USA has tried to calm global crude oil value by releasing strategic reserves, as it is facing crippling availability of Natural Gas in the domestic market. US manufacturers are revising their offers in order to repel losses.
As per ChemAnalyst analysis, prices are expected to remain firm in forthcoming weeks across the global market, as the demand for the product is stable while rising upstream value is not going to decline any time soon. China is witnessing the worst wave of COVID since 2020, while the US and Europe are battling supply disruptions. Thus, it is anticipated that the prices of most petrochemical commodities, including Butyraldehyde, are going to rise further.