Mumbai, India: The increasing demand for paints and coating amongst the downstream automotive and construction sectors has been the driving factor propelling India's Butyl Glycol market growth. This week, the solvent pricing remained buoyant despite the falling feedstock Ethylene Oxide and n-Butanol prices.

The advancing Indian economy with a rapidly developing automotive sector and enhancing commercial and residential projects across the country were boosting the petrochemical market. The unsurpassed requirement of Butyl Glycol as a solvent in paints and coating, plasticizers, and the chemical intermediates sector further supports the current market dynamics.

The petrochemical segment in India is highly dependent on Crude oil imports. In recent months, the Butyl Glycol players happened to be taking pressure from the fluctuating upstream Crude oil on the back of the ongoing Russia-Ukrainian conflict. With the dramatic ups and downs in Crude prices, downstream commodity futures such as that of Butyl Glycol continued to push higher. Accordingly, the spot prices witnessed greater volatility in May, as per ChemAnalyst Database.

However, the feedstock Ethylene Oxide and n-Butanol supplies were abundant in the country. The purchase of discounted Russian Crude oil since the start of the conflict has brought about the complete inventories of feedstock this month.

Meanwhile, a trader from Mumbai quoted, "The Butyl Glycol prices would escalate due to the higher transportation charges, even if the prices of feedstock Ethylene Oxide remain declining in the domestic market." The supplies are insufficient to meet the soaring terminal demand, he added.

As per ChemAnalyst, "Prices of Butyl Glycol in India are likely to maintain a persistent upward trajectory in the coming weeks. Additionally, the uncertainties associated with Covid in China might also impact the domestic market sentiments if the epidemic escalates. The solvent supplies might further tighten, and domestic demand may shoot up, rushing the Butyl Glycol pricing trend during the forthcoming period."