China Reimposes Covid-19 Curbs Might Affect Methyl Isobutyl Ketone Prices
- 13-Jul-2022 4:57 PM
- Journalist: Yage Kwon
The Methyl Isobutyl Ketone market has been dropping in the domestic Chinese market. The trade activities and copious availability of the raw material have been pulling down the Methyl Isobutyl Ketone pricing. In addition, the plummeting upstream crude prices are also influencing the Methyl Isobutyl Ketone market.
China's healthy importing of Crude from Russia amidst the Western sanctions resulted in a Crude price drop. Moreover, the growing fear of recession and poor demand from China is pulling down the Crude oil prices. With the copious availability of the product, the downstream derivative benzene, cumene, and acetone production were healthy. However, the import charges of Methyl Isobutyl Ketone from South Korea were low due to the price drop on the raw material side.
In addition, the new Omicron subvariant BA 5.2.1 is curbing in China, leading to the implementation of a new COVID testing policy in Shanghai. Hence, this has been disrupting the local markets, and the demand side remained weak. Thus, the Methyl Isobutyl Ketone pricing followed a downtrend in the Chinese domestic market. The stockholders have been showcasing a negative mindset as the declining trade activities resulted in the stockpiling of the product. Also, the holders were in a wait-and-see attitude, and the production was still.
China is known to export Methyl Isobutyl Ketone to India. Methyl Isobutyl Ketone's export price dropped compared to the previous month's export due to the reduction in the requirement from the Indian market.
As anticipated by the ChemAnalyst team, Methyl Isobutyl Ketone prices might drop in China in the coming weeks. The spread in the Omicron subvariant may rise and result in restrictions. The production of the products might get affected if again the restriction starts. The trade could be affected, and weak buying sentiments in the domestic market are likely to be possible. The upstream Crude and feedstock Acetone prices might continue to remain weak.
