Zero-Covid policy in China Changing Market Dynamics for Oxo Alcohols in Asia
- 25-Apr-2022 2:26 PM
- Journalist: Shiba Teramoto
The global Oxo Alcohol market has started showcasing mixed sentiments post witnessing a consistent pickup in prices throughout March 2022, owing to high raw material costs due to soaring crude oil value. Since China has started witnessing a terrible hit of the pandemic, it has turned the global market dynamics to follow a downtrend. However, the effect of Russia-Ukraine war overcame all the other market fundamentals like the pandemic in China and strategic reserves released by the USA during March. Thus, an overall price inclination was observed for Oxo Alcohols during the month of March across the global market.
As per the ChemAnalyst data, a hike of more than 6% was observed in India and Germany, followed by more than 10% in the USA and 2%-4% in China for Iso Butanol during the February-March timeframe. Meanwhile, after showcasing a consistent decline for several months, India witnessed a huge spike in the price of 2-Ethylhexanol, which was around 12% to 14%, varying with different locations. These spikes were primarily influenced by soaring raw material costs, as crude oil value escalated exponentially and remained above the mark of USD 100/barrel throughout the month. Russia-Ukraine war remained a significant factor behind these price fluctuations, while demand fundamentals were optimistic all across the globe except in some countries like China.
As per the latest analysis by ChemAnalyst, Oxo alcohols have started demonstrating weakness all across the globe, where the pace of increment has declined in major economies, and some have shown negative price revisions during the first half of April. According to the data, a decline in the price of n-Butanol of around 1.5% and 2.4% was observed in Germany and China, respectively, during the first two weeks of April, while the pace of inclination in India and the USA declined effectively in the meantime. The decline in China's n-Butanol was bolstered by diminishing offtakes from the domestic market as a repercussion of stricter lockdown restrictions in the country, while the decline in Germany turned out to be surprising, as the high raw material cost has been affecting German manufacturers since the start of the conflict.
As per the ChemAnalyst analysis, Oxo Alcohols prices are expected to keep on tracing current dynamics till the end of April, as the recent market fundamentals are not going to change any time soon. The pandemic in China and the Russia-Ukraine conflict is likely to take more time to diminish, while Asia players have started feeling the threat of a further wave of the pandemic in other Asian countries.