Hamburg, Germany: The German Tertiary Butyl Alcohol market has exhibited a bearish trend throughout April 2024 due to weak demand from consumers. The demand outlook dimmed as inquiries for Tertiary Butyl Alcohol from the downstream solvents industry decreased both domestically and internationally. On the cost side, naphtha was not strong. Despite the ongoing high prices of crude oil, upstream prices didn't show much improvement but prevented them from dropping too low in the domestic market. As a result, towards the end of April, Tertiary Butyl Alcohol prices noted slightly stability. Overall, the Tertiary Butyl Alcohol market sentiments were somewhat stable. The latest assessed prices of Tertiary Butyl Alcohol FOB Marl were USD 1060/MT.

The latest quarterly sales data released by major chemical firms showcase a decline in sales volumes. In Q1 2024, sales within the chemicals segment dipped slightly compared to the previous year, mainly due to a notable decline in sales of chemicals such as Tertiary Butyl Alcohol. Additionally, logistics disruptions in the Red Sea in Europe limited competitive imports, prompting increased volumes in the domestic market and exerting downward pressure on the prices. Globally, subdued demand for durable goods continued to pose challenges for volumes and margins in the petrochemical market, including that of Tertiary Butyl Alcohol.

However, the manufacturers of Tertiary Butyl Alcohol face challenges also due to ongoing geopolitical tensions. The global oil market has been encountering a combination of factors that impede supply growth and propel prices upwards. Growing concerns about potential conflict in the Middle East, along with restricted supply from OPEC+ and a relatively moderate demand outlook in key consumer markets like China, pose challenges for offsetting any production increases from non-OPEC producers. Furthermore, Iran's threat to close the critical Strait of Hormuz, responsible for transporting approximately 20 million barrels per day of crude oil and refined fuels, adds to the uncertainties in the petrochemicals sector, including the Tertiary Butyl Alcohol market.

With the Middle East accounting for nearly 40% of global oil exports, the region's instability could have significant repercussions. Meanwhile, ongoing tensions from the Israel-Iran conflict and safety issues in the Red Sea are driving up logistical expenses for transporting Middle Eastern crude. Insurance premiums and security-related costs have soared, resulting in a substantial increase in overall delivery expenses. According to ChemAnalyst pricing intelligence, the prices of Tertiary Butyl Alcohol are anticipated to demonstrate a change and likely to show an increasing trend in the upcoming weeks on the back of increased cost pressures and shipping constraints.