For the Quarter Ending March 2022
North America
Taking pressure from global uncertainties, Butyric Acid prices kept on tracing an uptrend throughout the quarter across the US market. Demand fundamentals for the product from the derivative and pharmaceutical sector-maintained stability as improving economies coupled with soaring input costs accelerated the pace of price revisions in the North American region. Also, geopolitical tension between Russia-Ukraine remained a key driving factor behind this steep rise in prices of feedstock Butyraldehyde in the US market, as WTI and Brent crude oil values rose drastically along with Natural gas during this quarter. As per the assessment, Butyric Acid price hovered around USD 1480/MT in the quarter ending March 2022.
Asia Pacific
The solvent sector remained firm throughout the first quarter of 2022 across the Asian market, as the demand from the domestic market-maintained stability. During this timeframe, upstream Crude oil soared to a multiyear high in Asia, leading to unprecedented hikes in prices of several commodities, especially the derivatives. Additionally, import halts from China due to the resurgence of Covid-19 have resulted in product scarcity. Thus, tight supplies to the downstream pharmaceutical and intermediate chemical players and increased input costs led to frequent price revisions of Butyric Acid to sustain their margin. The prices were assessed as USD 2363/MT for Butyric Acid CFR Hazira in India towards the end of the quarter.
Europe
During this period, the Butyric Acid market exhibited different market sentiments than any other region, as all the regional players had to battle with different complications, especially the Russia-Ukrainian conflict. Rising energy costs remained a major concern for all the key players, as the prices of most of the commodities were increasing owing to an unprecedented surge in raw material and natural gas prices. The reduced consumer spending habits and sluggish demand patterns from the downstream solvent sector with sufficient inventories have hampered the market outlook of Butyric Acid in Europe. The CFR Antwerp negotiations for Belgian Butyric Acid Industrial grade lingered around USD 1650/MT during the month ending in March.
For the Quarter Ending December 2021
North America
Sluggish demand and tumbling feedstock prices kept Butyric acid prices in downtrend during this quarter across US market. Despite of the fact that demand fundamentals across US market have been sturdy for most of the commodities, Butyric Acid indicated overall stagnancy throughout the quarter. Meanwhile, feedstock propylene also kept on tumbling throughout the quarter, post prolonged bullishness induced after freezing fallout at US gulf coast. It was observed that Propylene, a decline of around 5% compared to Q3 2021 quarterly average. However, downstream industries like Pharma and chemical intermediate worked differently for Butyric Acid, and the key driver of Butyric acid was remained pharma only during this timeframe.
Asia
Butyric Acid demand in Asian market remained dull during Q4 2021 despite booming economic activities in major Asian Economies. Key producer witnessed diminishing offtakes from downstream end user segment, while pharma sector maintained overall stability. Plummeting raw material cost also remained major reason behind deteriorating Butyric acid price in Asian market. However, festive season in Indian helped prices to sustain its value till November, which later declined effectively in the domestic market. December fall was primarily driven by muted offtakes from the domestic market, while traders heard carrying ample inventories to satisfy all the possible downstream demand till the end of 2021. Butyric acid price asses around USD 2408/MT during December.
Europe
European market remained dull for this product during this quarter, as the demand for the product across domestic market remained modest to stable, while supplies remained a matter of concern. Feedstock propylene was also rising on the back of high input cost amid modest to stable offtakes from the regional market. Major procurers in Europe heard procuring cargoes of raw material from Northeast Asia, which 50-60 USD/MT cheaper than domestic one. Butyric Acid demand in Europe remained sluggish than several other related commodities during this time period.
For the Quarter Ending September 2021
North America
During Q3 of 2021, market outlook of Butyric Acid showcased an upward rally in North America backed by the critical scarcity of feedstock Propylene. In the US, most of the manufacturers were compelled to shut down their production plants as a repercussion of Ida hurricane that made landfall at the end of August. For instance, key producers of Propylene like ExxonMobil and Dow Chemicals at Baton Rouge, Louisiana, and Taft, Louisiana, respectively kept their manufacturing units closed for about 14 days that consequently impacted the feedstock supplies. Hence, constraint availability of the product and sturdy demand from the downstream sectors during this quarter aided the pricing trend of Butyric Acid.
Asia
In Asia, Butyric Acid prices continued to be bolstered during the third quarter of 2021 backed by the spike in the prices of feedstock Propylene and high demand from the downstream manufacturers. In China, the congestion on several ports followed by the corona virus zero-tolerance policy and lower production rates due to energy crisis led to the steep rise in the values of Butyric Acid in this timeframe. In India, prices of Butyric Acid in the domestic market continued to be strengthened throughout the quarter in effect of tightened supplies and sturdy demand fundamentals. Moreover, skyrocketing freight charges and limited availability of shipping containers also supported this upward price trajectory in India. Hence, Butyric Acid CFR Hazira prices rose effectively from USD 1927.93/MT to USD 2338.11/MT within the quarter.
Europe
During the third quarter of 2021, prices of Butyric Acid escalated in the European region backed by the recovery of the industrial as well as commercial activities. Spike in the values of feedstock Propylene and improvement in the offtakes from the downstream manufacturers in this timeframe also aided the pricing trend of Butyric Acid. Additionally, crippled availability of shipping containers as well as continuously soaring freight charges also sent ripples to the prices of Butyric Acid in this quarter.
