For the Quarter Ending June 2023
North America
In the second quarter of 2023, butyraldehyde prices followed the declining trend on account of declined production costs and diminished demand from end-use (pains, automotive, agrochemical) industries. Retarded prices of feedstock (propylene) in the regional market accompanied by the US market's economic conditions had deteriorated as a result of the increased inflation pressures and concerns about a financial crisis brought on by the failures of Silicon Valley and Signature Bank at the beginning of the quarter. Moreover, towards the quarter's end, the domestic ports faced labor shortages amidst the union strike on the West Coast of the US, crowding the dockyard with pending orders. Moreover, the US federation kept the interest rate on the positive side restricting the buyers from end-use manufacturing industries and compelling the buyers from placing higher orders. The worldwide high supplies of the product and its subsidiaries additionally impacted the interest in US propylene. Providers were not in a frantic situation to sell, and the extra interest coming about because of the Shell steam cracker fire dialed back the speed at which costs were falling.
Asia-Pacific
Because of subdued requests from the downstream paints and covering, the agrochemical industry alongside satisfactory inventories, Butyraldehyde costs have dropped in the Indian market all through April. Moreover, supply has been adequately attributable to consistent inflows of imports from the significant sending out country, for example, China which had additionally overloaded the costs of Butyraldehyde in the homegrown market. Supported by the dull purchasing feelings in the midst of frail interest from the downstream synthetic substances (like in paints, automotive, and agrochemicals). Notwithstanding, the modest imports presented from the abroad market have prompted adequate material accessibility in the domestic market. In addition, the European market staggered on monetary grounds as the district entered a downturn and the European Central Bank raised the financing cost affecting the general ware costs and adversely impacting purchasers and gouging the organization's region.
Europe
Butyraldehyde price dynamics declined throughout the second quarter of 2023 on account of slow demand and other microelement factors Butyraldehyde prices in the German market experienced a decline due to sluggish buying trends among end-users. Although feedstock Propylene prices decreased, their impact on Butyraldehyde prices in the domestic market was limited. Amid economic uncertainties, the demand for Butyraldehyde from the downstream automotive industries remained moderate, leading manufacturers to adjust their price quotations negatively in the domestic market. Several major European Union (EU) economies had reported mixed second-quarter (Q2) performances, with persistently high inflation levels across the bloc. The European refinery solvents market was puzzled by the disappearance of Q2 demand, as the usual seasonality proved to be extremely disappointing, with minimal signs of any improvement. Additionally, the European region faced economic difficulties as it slipped into a recession, and the European Central Bank's decision to raise interest rates had repercussions on overall commodity prices. This move had a negative impact on buyers and put a strain on the administration's domain.
For the Quarter Ending March 2023
North America
Butyraldehyde prices showed mixed sentiments in the USA market during the first quarter of 2023. During the initial of Q1 2023, Butyraldehyde prices increased due to high-cost pressure from feedstock Propylene prices. At the same time, demand for Butyraldehyde from end-user automotive construction has remained stable in the domestic market. Although, during mid of Q1 2023, Butyraldehyde prices declined due to weak buying sentiments among the end-users. Operating rates have remained under check in the wake of sluggish consumption from the domestic and overseas markets. Overall, demand from the downstream automotive construction has remained on the lower side while the sufficient inventories to cater to overall demand. However, during the final of Q1, Butyraldehyde prices have inched higher due to high inflationary pressure and volatile energy prices in the region. Production costs have also increased due to high raw material Propylene prices, forcing the manufacturer to raise their price quotation.
Asia- Pacific
Butyraldehyde prices have shown fluctuation in China market during the first quarter of 2023. During the initial and mid of Q1, Butyraldehyde prices showed upward stability due to stable demand from the downstream automotive and construction industries, while the cheap import offers from South Korea and other exporting countries have led to better imported material availability in the domestic market. Although, during the final of Q1, Butyraldehyde prices dropped significantly due to dull buying sentiments along with sufficient material available in the domestic market. In addition, demand from the downstream automotive and construction industries has remained subdued in the domestic market. Market participants reported limited instances of new orders from the end-user.
Europe
Prices of Butyraldehyde have witnessed a see-saw trend in the European market throughout the first quarter of 2023. During January, Butyraldehyde prices dropped due to sluggish demand from the end-user construction, automotive, and agrochemical industries amid ongoing holiday seasons in the European market. At the same time, lower imports offered from Asia coupled with ample material available have further weighed down the prices of Butyraldehyde in the regional market. Although, during February, Butyraldehyde prices gained upward momentum backed by high-cost pressure from feedstock Propylene prices. On the other side, the European market has seen an increase in procurement activity, though demand from downstream industries has remained steady. However, during March, Butyraldehyde prices declined due to a sluggish buying trend among the end-users. Cost pressure from feedstock Propylene has eased, which resulted in the low production cost of Butyraldehyde in the region. Overall, demand from the downstream industries has remained weak. There were no new orders from end-use industries, so the product ended up in stock. In addition, the market perceived a wait-and-see attitude.
For the Quarter Ending December 2022
North America
Butyraldehyde prices declined continuously in the USA market throughout the fourth quarter of 2022 owing to sufficient inventory and weak demand dynamics. Feedstock Propylene prices have dropped, which eased the overall production cost of the Butyraldehyde in the regional market. Additionally, consumer sentiment has decreased in the region, which has been witnessed by the decline in the manufacturing Purchasing Index, which dipped below 50 (i.e., 49.7) in November, indicating a reduction in both industrial and manufacturing activity. Meanwhile, cheap imports from Asia weighed down the prices of Butyraldehyde in the regional market. Furthermore, demand from the downstream paints and coating and other competitive industries has decreased amid seasonal dullness, supporting the decline in the price realizations of Butyraldehyde in the regional market.
Asia- Pacific
Butyraldehyde prices showed a mixed trend in the Asian market during the fourth week of December 2022. In China, during the first month of Q4, Butyraldehyde prices increased due to limited material availability and bullish demand from the downstream paints and coating along with allied industries. Furthermore, feedstock Propylene prices increased, resulting in the high production cost of Butyraldehyde in the domestic market. However, during the last two months of the quarter, Butyraldehyde prices dropped marginally due to the weak demand dynamics amid soft sentiment caused by the sluggish performance of the construction industry and covid lockdown. At the same time, ample product availability weighed down the prices of Butyraldehyde. Furthermore, manufacturing activity contracted in December. According to the National Bureau of Statistics, Purchasing Manufacturing Index dropped from 48 to 47 during December.
Europe
Prices of Butyraldehyde have witnessed mixed sentiments in the European market during the fourth quarter of 2022. During the first two months, prices have increased due to the high feedstock Propylene prices. In terms of domestic production, operating rates remained under check as energy prices continued to climb higher. The supply chains in the market were disrupted due to prolonged port congestions and vessel bunching, along with labor shortage which halted the supply flow of Butyraldehyde and, thus, limited the product availability in the regional market. Although, during the last month of the quarter, Butyraldehyde prices have dropped slightly due to the weak demand dynamics. The sharp decline in the freight rates, resulting in better imported material availability, weighed down the prices of Butyraldehyde. Meanwhile, demand from the downstream industries has continued to remain subdued due to the weak buying sentiments in the regional market.
For the Quarter Ending September 2022
North America
During the third quarter of 2022, Butyraldehyde prices showed mixed sentiments in the North American region. In the initial part of the third quarter, the Isobutylene price plunged around 2% owing to the weak cost pressure from the feedstock and sluggish demand from the downstream oxo-alcohol industries. However, during August and September, prices were rebound. Bullish sentiment in the feedstock, turmoil in the energy market, and a high inflation rate contributed to the high Butyraldehyde prices across the regional market. In addition, the US market has struggled with contradictory logistics, as interior rail hubs causing a container backlog at Long Beach port have affected the supply chain. Hence, as a result, Butyraldehyde's prices increased by around 2.6% during September 2022.
Asia – Pacific
Butyraldehyde prices showcased mixed trends in the Indian market during the third quarter of 2022. During July, prices of Butyraldehyde plunged by 1.4% as the cost pressure remained weak. Feedstock Propylene prices have decreased, which weighed down the Butyraldehyde to follow the downward trend. Sufficient inventory level and bearish demand from the downstream Oxo- alcohol industries. However, during the mid of Q3, prices slightly rebound due to the high feedstock Propylene prices. Demand from the downstream oxo-alcohol sectors has improved, although supply was not enough to cater to the overall demand. While during the end of Q3, Butyraldehyde prices decreased sharply due to the cheap imports from other Asian countries. Furthermore, consumption levels remained low in the Oxo-Alcohol industries. As a result, prices of Butyraldehyde CFR JNPT were assessed at USD 2489/MT during September.
Europe
Prices of Butyraldehyde showed fluctuation in the European market during the third quarter of 2022. During the initial and mid-Q3, Butyraldehyde prices declined due to the weak feedstock Propylene prices. Furthermore, sufficient inventory level coupled with weak demand from the downstream oxo-alcohol have remained weak, has another reason for the price drop in the regional market. However, during the end of the third quarter, Butyraldehyde prices gained upward momentum, supported by the high production cost amid surging natural gas prices. Furthermore, the speculation of recession across Europe has dampened the demand from the downstream industries. On the other hand, the supply chain was disrupted owing to the prolonged port congestion and vessel bunching coupled with a labor strike, which halted the supply flow of Butyraldehyde and limited the material available in the regional market. As a result, in Germany, prices of Butyraldehyde FOB Hamburg were assessed at USD 2480/MT during September.
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.
