For the Quarter Ending June 2021
The North American market had firm demand for Iso Butanol (IBA) during Q2, backed by improved offtakes from the downstream sectors. Prolonged shortage of the feedstock Propylene led to an extreme rise in its prices during this quarter in USA. Due to this shortage, price of Iso butanol (IBA) rose effectively throughout the quarter, while gaining support from the downstream user segment. The downstream construction sector suddenly picked up the pace that increased the consumption of IBA from the paints and coatings sector. However, traders were struggling to procure cargoes from the domestic market, but due to lack of proper availability, prices gained an upward momentum. Thus, the price of Iso butanol were assessed around USD 2545/MT during end of June in USA.
Iso Butanol showcased firm sentiments during this quarter in Asia, backed by stable to firm demand from the downstream sector. The price increased significantly while the demand remained in a modest to stable range in the Asian market in the meantime. Majorly spill over effect was observed in the Indian Iso Butanol market, where the demand fluctuated in a narrow range due to second wave of pandemic, but the prices kept on rising due to the global price hike. However, in China, prices kept on rising due to firm domestic demand and soaring international prices. Thus, the overall Asian market witnessed an upward price movement with Iso Butanol prices in India hovering around USD 1639/MT during the last week of June.
Europe also experienced an upward price trend during this quarter backed by improving domestic market condition as an after effect of pandemic recovery. The construction sector was improving month over month, thereby supporting the demand for Iso Butanol from the paints and coatings sector. In addition, global price hike for Iso Butanol also affected the European market, as imported cargoes were getting expensive and soaring freight cost also exacerbated the overall price scenario.
For the Quarter Ending March 2021
North America Petrochemical sector kneeled to its lowest level under the freezing storm, in February 2021. This rare climate calamity halted almost 80% of the total US output, and hence affected the prices across the region. Major petrochemical plants remained idled during this period, like OQ chemicals announced an abrupt shut down of their Iso Butanol plant with a capacity 240,000 MT per Year due to unfavourable weather conditions. Meanwhile, Iso Butanol prices by +USD 220.7 per MT across the region.
Asian market encountered critical shortage of Iso Butanol amidst high demand from domestic downstream chemicals manufacturers like resins, lacquer solvent etc. Global crisis of solvent and continuous gain in value by crude oil primarily affected the prices of Iso Butanol across the region. Prices of Iso Butanol in the Indian market rose by 48.23% from January to March 2021, while in the Chinese market prices rose by 77.78% within the quarter and settled down at USD 1600/MT till March end.
Europe faced high shortage of Iso Butanol amid sufficiently high demand from downstream sectors, which supported its prices during this timeframe. Lower trade activities across Asia and significantly increment in the Middle East crude oil prices significantly affected the domestic prices of Iso Butanol across the region. While the demand from lacquer solvent remained higher than expected due to ongoing global solvent crisis.
For the Quarter Ending September 2020
The Asian Iso Butanol sentiments took a driver’s seat in the third quarter as end use industries resumed production with few operating at their maximum capacities under hopes of recovering the loss incurred in the previous quarter due to the coronavirus contagion. Consistent revival in values of the upstream crude also contributed well towards uplifting the market fundamentals in the region. As several countries in Asia primarily cater to their domestic demands through imports, trade constraints from Europe resulted in supply shortage.
The North American Iso Butanol market witnessed promising gains in the third quarter with revival in demand from rubber sector. However, the production cuts implemented in many petrochemical plants in the region due to the fear of Hurricane Laura which has dragged the export potential of the leading producers pushing their revenues lower in comparison to the previous quarter. Traders are buoyant over increased purchasing from the eastern countries in early October on stock piling of Iso Butanol to abate the supply shortage ahead of China’s National Day holiday in October.
Import demand for the middle east petrochemicals largely improved in the third quarter with increased production from the end use industries on revival in market activities after coronavirus plateaued in majority of economies throughout the world. Firming values of upstream crude further provided support to margins of derivatives such as Iso Butanol following strong market dynamics in Asian and European countries. However, curtailed production due to maintenance outages in few of the plants exerted a downward pressure on the export revenues.