For the Quarter Ending June 2022
The price trend of Butyraldehyde remained strong in the North American region, and prices rose throughout the quarter. In the H1 of the quarter, high petrochemical prices rose the feed Propylene costs sharply, due to which Butyraldehyde production costs soared in the region. However, in the mid-quarter, the feed costs stabilized, and Butyraldehyde costs rose marginally till the end of the quarter. The demand from Oxo-alcohol industries remained strong from the phthalate producer due to increased orders from the automotive manufacturers in the region, which contracted till the end of Q2 due to reduced automotive sales, and product offtakes remained firm throughout the Q2 from the domestic market.
During Q2 of 2022, the price of Butyraldehyde remained fluctuated. However, the price rose by almost 10% from quarter 1 of 2022. Most Asian countries were purchasing crude oil from OPEC except India and China. Due to this, petrochemical prices were uncertain in the region. Volatility in upstream naphtha and feed propylene costs post inflation, and crude oil imports from Russia impacted the petrochemical prices. Fuel and freight costs were oscillating too due to uncertainty in oil costs. The demand from Oxo alcohols industries for phthalate was strong at the beginning of the quarter but diminished slowly towards the quarter end, and offtakes remained moderate in Quarter 2.
Throughout the quarter, the price trend of Butyraldehyde remained steady, and Butyraldehyde prices rose consistently in the European region. At the beginning of Q2, petrochemical feedstock propylene prices rose sharply, which increased the product's production costs significantly. In the mid-quarter, the feedstock propylene and upstream Naphtha prices stabilized. However, energy and gas costs were firm in the region due to supply shortages of gas, keeping the Butyraldehyde costs on the higher side and raising the product's price marginally until the end of the quarter. The demand from downstream Oxo-alcohol producers remained modest, with average product offtakes from the regional market.
For the Quarter Ending March 2022
North America saw an increase in prices of Butyraldehyde which went up to USD 2335/ton FOB New York in the first quarter of 2022 due to its growing demand from downstream food enterprises in baked goods, frozen dairies, and alcoholic beverages. Depleting supplies and inventories surged the production cost of its raw materials propylene and n-butanol, contributing to the prices of Butyraldehyde. Economic growth in transportation and manufacturing affected the demand prospects, and dramatically, crude oil market sentiments swung changes in economic fundamentals. USA being the major exporter of Butyraldehyde has experienced the surge in the Oxo alcohol market due to the restriction of major businesses between Russia and the USA with ongoing war crisis, which affected the value chains of North America and resulted in higher energy costs.
In Asia, the prices of Butyraldehyde were observed to be increasing with a surge of 14.9% in India and 7.8% in Japan in Q1, 2022 as compared to the last quarter of 2021. The prices in Japan began at USD 2440/ton FOB Tokyo in January and went up to USD 2520/ton FOB Tokyo by the end of March. The Philippines being the major exporter of Butyraldehyde, saw an increase in freight charges as a consequence of the ongoing war between Russia and Ukraine, which resulted in an increase in prices. The demand from the downstream sector increased majorly in food additives where it is used as a flavouring agent and for fragrance as well, thereby elevating the prices of Butyraldehyde.
During Q1 2022, the prices of Butyraldehyde rose in the European continent with a change of approximately 4.9% compared to the last quarter of 2021 in Germany. The prices were hovering around USD 2146/ton-2289/ton FOB Hamburg by the end of the first quarter in Germany. The volatility in the prices of crude petroleum affected the cost of its derivative propylene and butyryl chloride taking hold of the cost of Butyraldehyde. The European companies commercialized a rhodium-based technology for the processing of Butyraldehyde which is slightly costly due to its driving demand in the downstream food market as oxo alcohol and efficiency, thus contributing to increasing prices of Butyraldehyde.