Acetaldehyde prices have been rising in the global market as Feedstock Ethylene price continues to grow, backed by a rise in the cost of upstream Crude oil. In the first quarter of 2022, demand from the downstream pharmaceuticals sector climbed somewhat. The supply shortages worsened in mid-February when sub-zero temperatures along the Gulf Coast of the United States severely hampered the production of critical feedstock factories.

The ongoing war between Russia and Ukraine have significantly impacted the production rates and operational costs of various commodities, including feedstock Ethylene and Acetaldehyde manufacturing. Downstream manufacturers are finding it difficult to compete due to the rising value of upstream Crude oil. As a result, the war in Ukraine threatens to disrupt an already strained supply chain significantly.

As the industry became more flexible in the face of rising costs in the regional market, buyers were seen leaning towards Asian providers. The Asia Pacific Acetaldehyde market likewise saw an increasing trend, as supplies in the region remained balanced to robust. The boost of capacity helped to support Chinese supplies. Despite the global supply shortage, demand increased due to higher offtakes from the downstream sector and more significant arbitrage from the western region.

Acetaldehyde, commonly known as Ethanal, is a toxic and reactive Aldehyde. Acetaldehyde is also used in manufacturing many types of building materials, fire protection paints, synthetic lubricants, and paints, and is also utilized in the pharmaceutical industries to make vitamins.

As per ChemAnalyst. "As the world witnesses, the conflict between Russia and Ukraine is profoundly influencing the global economy and the Crude oil prices indicated USD 114.9 per barrel for WTI on 22 March 2022. Extensive purchasing interest for feedstock Ethylene has continued to test its market fundamentals in the count, owing to optimistic signs on Acetaldehyde demand. Traders and various downstream buyers of Acetaldehyde have been heard stockpiling inventory to prepare for the short-term supply shortage. Therefore, Acetaldehyde prices are expected to grow in the short term.”