For the Quarter Ending September 2022
Iso Butyric Acid prices dropped down in the USA during the third quarter of 2022. The decline in the prices of this product was primarily because of the reduction in prices of propylene, the base material used in making this product, as well as a decline in the costs of upstream crude oil. In addition to these, Iso Butyric Acid prices fell due to lower demand from manufacturers of paint and personal care products. The downstream dyeing and food additive industries showed constant interest, easing the cost pressure on product prices. So, this product's market in the USA was concluded at USD 2,180 per MT on FOB – Houston basis.
Iso Butyric Acid witnessed a further price reduction during the third quarter of 2022 in the Asian market. The market for this product was dull in China due to various issues. The key factors that made the prices decline were the implementation of the zero covid policy by the government and the energy crisis, which forced both upstream as well as downstream firms to halt or bring down their production rates completely. When it comes to India, though there was stability in the demand-supply ratio of this product, the prices were dropping down because of the cut in prices of feedstock Propylene and upstream crude oil. So, in this quarter, the market of Iso Butyric Acid in India closed at USD 3039 per MT on a spot Ex-Mumbai basis.
European Iso Butyric acid markets were also dull in the third quarter of 2022. The demand for petrochemicals has been severely impacted by a variety of factors. Market participants indicated that petrochemical demand was being impacted by consumer concerns about inflation, the ongoing Russia – Ukraine conflict, and an impending energy crisis. Additionally, supply chain delays make it difficult for customers to pass on ongoing cost increases. So, Iso Butyric acid closed its market this quarter at USD 1,830 per MT on FOB – Hamburg basis.
For the Quarter Ending June 2022
Costs for crude oil and propylene, both required to make this product, are falling, resulting in a drop in the price of Iso Butyric Acid in North America at the end of the quarter. Likewise, Isobutyric acid's price decreased because of a decline in demand from paint and personal care product manufacturers. The second quarter saw the product's merits be stable throughout the regional market. Steady demand from downstream dyeing and food additives sectors relieved cost pressure from the product's prices. Varying prices of upstream feedstock Propylene and 2-Methyl Propane due to the fluctuations in the global petrochemicals market affected the downstream market sentiments.
The prices of Iso Butyric Acid fell in the Asian market during the second quarter of 2022 in Asia with a quarterly decline of 2.9% in India, as recorded by Chem Analyst pricing team data. The downstream products showed mixed fluctuations, but the changes were insignificant, and the overall situation was stable. It was also challenging to improve the propylene market because start-up and sales were in a steady state, demand stimulation was insufficient, and the propylene market was challenging to improve. As a result of the weakening of international crude oil, the benefits of the lower costs are limited, and the propane market also deteriorated along with it. Furthermore, due to the off-season factor, the terminal demand was limited, and the market trading atmosphere was hostile, so manufacturers primarily sold at a profit-cutting price.
The price levels of Iso Butyric Acid surpassed the pandemic's lowest point in European Union during the second quarter of 2022, which prompts worries about a significant economic downturn. Due to a variety of factors, the demand for petrochemicals has been under a great deal of pressure. But the most recent data support that consumer apprehension over inflation, conflict, and an impending energy crisis is additional vital factors reducing demand for petrochemicals. In addition, purchasers find it difficult to pass on ongoing cost increases due to supply chain delays. Buyers are destocking in the current market scenario, perhaps because those quantities accrued because of fear when the conflict began.