For the Quarter Ending December 2022
North America
The same trend was observed in the North American and European butyl glycol markets this quarter. Upstream productions were limited because of the average demand for this commodity from businesses downstream. Ethylene oxide and n-Butanol, the base materials used in the production of this product, saw significant price reductions as a result of lowered prices of upstream crude oil, which had an impact on this commodity's costs. The paints and toiletries industries were able to meet their production needs because this product was readily available in stores.
APAC
The market for butyl glycol declined across the entire Asia-Pacific region during this quarter as well. There are many reasons for butyl glycol's price drop in China. The provincial governments' implementation of lockdowns had an impact on the butyl glycol production industries' and paints and toiletry companies' production rates. The lower prices of upstream crude oil were another factor that contributed to the decrease in the price of this product. This quarter, the butyl glycol market in India was comparable to China's. Sellers had to lower their quotes in order to clear the stocks because of the moderate demand for this product from businesses downstream. As a result, more volumes of this commodity accumulated in inventories.
Europe
In this quarter, the markets for butyl glycol in Europe and Asia were identical. The decreased prices of n-butanol and ethylene oxide, the product's base materials, primarily influenced butyl glycol prices in Germany. It was discovered that manufacturers of paints and toiletries had a modest interest in this product because they were extremely concerned about the rising energy costs brought on by the ongoing conflict between Russia and Ukraine. Upstream businesses were not producing butyl glycol more for the same reasons, and hence, production rates were found to be average.
For the Quarter Ending September 2022
North America
North American Butyl Glycol markets were identical to that of the Asian markets in this quarter. In the U.S., Butyl Glycol Prices were primarily influenced by the diminished costs of n-butanol and ethylene oxide, base materials used in the production of this product. Toiletry and paint products manufacturing companies were found to be creating modest demand for this product in the market, as they were not having an adequate workforce because of the summer season and had been having only limited production activity, and production rates were found to be modest. Hence, the market of Butyl Glycol was dull in the U.S. in this quarter.
APAC
This quarter, there was a decline in the butyl glycol market across the entire Asia-Pacific region. The price of butyl glycol has decreased in China because of a number of factors. The primary reason for price reduction in the early days of this quarter was the recession in the Asian crude oil markets, which resulted in a drop in upstream crude oil prices, as well as the provincial governments' enforcement of lockdowns. However, as butyl glycol production industries and paints and toiletry companies that use this product for their manufacturing activities were forced to completely halt or significantly reduce their production rates due to acute power shortages, the price of butyl glycol dropped in the middle of August. India's market for butyl glycol in this quarter was comparable to China's. Reduced crude oil prices and a moderate demand from downstream businesses for this product influenced its price. Hence, Butyl Glycol closed its market in India this quarter at USD 1,742 per MT on CFR – JNPT basis.
Europe
The market of Butyl Glycol in Europe was contrary to that of the Asia – Pacific markets in this quarter. The cost of this product got increased drastically. The growth in cost was because of the lack of availability of this product, as upstream companies (n-Butanol and ethylene oxide manufacturing firms) had lowered their production rates because of expanded energy and production costs attributed to the ongoing Russia – Ukraine conflict. Downstream companies were also concerned about these factors, and hence, they, too, exhibited modest demand for this product.
In the North American region, the price of Butyl Glycol has witnessed a mixed trend throughout the second quarter. The western countries had sanctions on Russia's import and export of raw materials, in the Northeast Asian region inquired about the WTI crude oil prompted the prices in the region. At the beginning of the April-May quarter, the upstream ethylene oxide price rose gradually and fell from the end of May to June. The higher freight charges occurred due to the increasing energy prices in the region. The cost pressure from the upstream weakened in June, supporting the downstream commodities in the region.
Throughout the second quarter, the price of Butyl Glycol has witnessed mixed trends in the region. At the beginning of the quarter (April and May), prices rose sharply due to the increase in the raw material cost in the region. The increased ethylene oxide price gradually affected the downstream derivative prices of Butyl Glycol in the market. Initially, the primary feedstock of Brent crude oil price soared, causing an increase in the price of downstream commodities in the regional market. The freight charges were inclined due to the rise in energy prices. At the end of May, the price fell to the rest of quarter. The ample product availability and supply in the market decreased the offers from the manufacturer's quotations. The percentage of Butyl Glycol was recorded with a declination of 2.2% on an Ex-Mumbai basis during the second quarter.
In the second quarter of 2022, the price of Butyl Glycol has observed an upward trajectory in the European region. The limited availability of the upstream raw material continued to raise the product's price. The tight supply and demand from end-user industries increased the price of Butyl glycol in the regional market. European countries limited their import from Russia's raw materials and further increased the price due to the invasion of Ukraine. The demand from downstream industries hiked the price of Butyl Glycol. They were delayed in delivering the product to the market due to supply disruptions from Eastern Europe.
