Mumbai, India: This week, the Iso Butyric Acid market witnessed bearishness across India. The price trend showcased a drastic downfall in the domestic market. Resumed market operations in China post covid resulted in increased trade activities and ample supplies to India.

The price fall is primarily triggered by diminishing offtakes from the domestic market, and lower import offers from overseas suppliers, particularly from China. A Shanghai-based trader revealed that their revenue fell by 40 percent for May, which might eventually rebound in the coming weeks. Moreover, the low trading atmosphere amidst adequate Iso Butyric Acid availability compelled the domestic producers to reduce the prices for their solvent product lines across the Chinese market.

Meanwhile, the upstream Naphtha market was observed to be trapped in a cycle of sufficient supply, impacting feedstock propene prices negatively in the current week. Thereby encouraging downstream Polypropylene and Iso Butyric Acid production further influenced the market dynamics. As per our insights, the downstream food and flavours and chemical intermediate players were dealing with sluggish terminal demand. The consumer buying sentiments weakened due to the utilization of existing inventories in the domestic market.

The end-user animal feed traders were negotiating on their existing inventories to sustain their margins. Consequently, according to the ChemAnalyst Database, the Ex-Mumbai price discussions of Iso Butyric Acid witnessed a drop of nearly 3 percent in the first week of June.

As per ChemAnalyst, “the Iso Butyric Acid pricing trend is expected to trace downwards in the coming weeks with overall moderate demand fundamentals from various downstream industries. Additionally, the animal feed industry is also anticipated to consume relatively less than in the previous weeks in India due to the ongoing summer season. In contrast, upstream Naphtha and feedstock Propene is projected to rebound with increasing demand from the United States, Europe, and China.”