For the Quarter Ending September 2024
North America
Throughout Q3 2024, the U.S. butyraldehyde market encountered substantial growth, primarily due to tight supply conditions, rising feedstock costs, and increased energy expenses. Limited domestic availability, combined with heightened demand from downstream sectors, exerted significant upward pressure on prices. This period saw especially strong demand from the automotive and plasticizer industries, which spurred a robust market sentiment and supported price increases.
The U.S. market saw a notable uptick in butyraldehyde prices, with production costs climbing in response to increased propylene and natural gas prices. Propylene, a key feedstock for butyraldehyde production, experienced elevated costs due to constrained supply chains and high energy expenses, especially during hurricane season, which impacted production stability. Unlike Europe, which faced a sharp rise in natural gas prices, the U.S. benefited from comparatively lower costs, though increased feedstock expenses were still a significant factor in pushing prices higher.
The consistent demand from critical sectors coupled with steady production rates further underscored the positive pricing trend in the U.S. butyraldehyde market throughout Q3, marking a quarter characterized by strong market fundamentals and consistent upward price adjustments.
APAC
In Q3 2024, the Butyraldehyde market in the APAC region experienced a sustained period of decreasing prices, influenced by a confluence of factors. High import costs, weak domestic demand, and disruptions like the shutdowns of key plants [Shenhua Coal to Liquid and Chemical, Shandong Tianhong Chemical, Shandong Huifeng Haiyi, Hebei Haiwei] contributed to the downward trend. This slowdown, combined with limited downstream purchasing activity, led to an oversupply of Butyraldehyde in the market. Additionally, upstream prices of crude oil offering little support to Butyraldehyde prices. In exporting nations, petrochemical plants resumed operations, increasing production rates and inventory levels. Despite producers' efforts to clear backlogs, weak demand in both domestic and international markets kept Butyraldehyde prices suppressed. In India, the market saw the most significant price changes, with prices declining steadily throughout the quarter. The overall trend reflected a negative sentiment, with prices dropping by 3% from the previous quarter. Seasonal factors, such as reduced procurement during the rainy season, further impacted the market dynamics.
Europe
Throughout Q3 2024, the European butyraldehyde market witnessed a period of significant price escalation driven by various key factors. Tight supply conditions, stemming from limited domestic availability and rising feedstock costs, exerted upward pressure on prices. This scarcity was exacerbated by heightened demand in downstream sectors, particularly the automotive industry, which experienced a notable resurgence, further boosting market confidence. Additionally, escalating energy prices, especially natural gas, and increasing production expenses due to elevated propylene prices contributed to the overall bullish market sentiment. Germany, in particular, experienced the most pronounced price changes within the region, with prices steadily increasing. The market in Germany saw a 1.2% price increase from the previous quarter, and a 3% price difference between the first and second half of the quarter. The quarter culminated in the price of Butyraldehyde FOB Hamburg reaching USD 1652/MT, reflecting the overall positive pricing environment characterized by consistent upward momentum. No plant shutdowns were reported during this period, further supporting the robust pricing trends observed in the region.
For the Quarter Ending June 2024
North America
The second quarter of 2024 saw a dynamic period for butyraldehyde pricing in North America, predominantly characterized by an upward trend. This bullish market sentiment was influenced by several pivotal factors. Key among these was a significant surge in demand from downstream industries, particularly plasticizers (such as PVC), paint, and coating.
Supply constraints exacerbated this surge due to the shutdown of a major PVC plant in Mexico and logistical challenges in Asia, reducing the competitiveness of Asian PVC exports. Rising freight rates and vessel shortages further tightened the market.
Geopolitical tensions and disruptions in critical trade routes, like the Red Sea, escalated upstream crude oil prices, subsequently raising production costs. Additionally, maintenance turnarounds at numerous petrochemical plants resulted in reduced inventory levels, further tightening supply. In the USA, the butyraldehyde market exhibited considerable volatility, with prices reflecting a profoundly positive trend. The steady rise in butyraldehyde prices was supported by increased costs of feedstock propylene and heightened export activities. The Q2 2024 pricing environment was definitively positive, driven by the convergence of supply constraints and sustained demand, which together propelled prices upward.
APAC
In Q2 2024, the Butyraldehyde market in the APAC region experienced a significant upward trend in pricing, driven by several pivotal factors. The quarter was marked by rising raw material costs, notably propylene, and escalating crude oil prices driven by global geopolitical tensions and supply chain disruptions. Noteworthy incidents, such as the severe flooding and power outages in southern APAC regions, particularly in major industrial hubs, impeded production capabilities. These weather-related adversities led to temporary plant shutdowns, further constraining supply and exacerbating the upward pressure on prices. Focusing on India, the country witnessed the most pronounced price changes within the region. The Butyraldehyde market in India displayed a bullish sentiment throughout the quarter, primarily fueled by robust demand from essential sectors like paint, coatings, and adhesives. The ongoing construction boom and high residential property demand amplified the need for Butyraldehyde, while seasonal factors like intense heatwaves spurred demand in the electrical sector. The price dynamics revealed a substantial increase of 4% from the previous quarter, reflecting the tight market conditions and high procurement activity. Comparing the first and second half of the quarter, a 7% increase underscored the escalating demand and constrained supply. The factors contributing to price changes have predominantly been supply chain disruptions, increased raw material costs, and strong downstream demand, painting a picture of a market under sustained upward price pressure.
Europe
In Q2 2024, the pricing dynamics for Butyraldehyde in Europe depicted an overall bullish trend, underpinned by several key factors. The quarter saw significant upward pressure on prices, driven primarily by escalating energy costs, heightened demand in international markets, and supply chain disruptions. Influences such as geopolitical tensions in the Middle East, which led to soaring crude oil prices, played a substantial role in inflating production costs. Furthermore, the ongoing Red Sea crisis exacerbated freight and logistics challenges, further amplifying costs. Concurrently, supply-side disturbances, including plant shutdowns at notable facilities like Dow Chemical in Freeport, Texas, LyondellBasell in Corpus Christi, and Shandong Tianhong Chemical Co., contributed to the constrained availability of feedstock propylene, thereby increasing Butyraldehyde costs. Focusing on Germany, which experienced the most pronounced price increments in the region, market trends mirrored the bullish sentiment observed across Europe. Seasonal peaks, coupled with a robust export demand, particularly in the paint and coatings sector, underpinned the pricing surge. The German market exhibited a 5% increase from the previous quarter, reflecting strong demand and supply constraints. Comparing the first and second halves of the quarter, prices climbed by 5%, indicating a consistent upward trajectory throughout the period. The pricing environment for Butyraldehyde in Germany was notably positive, marked by rising prices and robust demand dynamics. The quarter-ending price for Butyraldehyde in Germany stood at USD 1580/MT FOB Hamburg, epitomizing the consistent upward trend driven by multifaceted market forces.
For the Quarter Ending March 2024
North America
In Q1 2024, the Butyraldehyde market in the North America region followed a bearish trajectory, marked by declining prices. This downturn was influenced by various factors, including reduced demand in exporting nations, where a slowdown in construction activity led to decreased demand of butyraldehyde in the downstream paint, coating, and polymer sectors. Additionally, the continuous decrease in feedstock prices, such as propylene, further contributed to the overall decline in Butyraldehyde prices.
In the US, which experienced significant price fluctuations, the Butyraldehyde market saw a similar bearish trend globally during Q1 2024. This decrease in prices was attributed to factors like oversupply and low import prices from exporting nations. Additionally, the decline in feedstock prices played a role in reducing the production costs of Butyraldehyde. Overall, the market sentiment regarding Butyraldehyde in Q1 2024 leaned towards negativity, with prices witnessing a notable decline compared to the same quarter last year. Furthermore, the percentage change from the previous quarter in 2024 also indicated a downward trend.
The market was influenced by factors such as import prices, production costs, and demand from downstream industries such as paint and coating. Compared to the same quarter last year, Butyraldehyde prices in Q1 2024 showed a decrease.
APAC
In Q1 2024, the Butyraldehyde market in the APAC region followed a bearish trajectory, marked by declining prices. This downturn was influenced by various factors, including reduced demand in exporting nations like China, where a slowdown in construction activity led to decreased demand of butyraldehyde in the downstream paint, coating, and polymer sectors. Additionally, the continuous decrease in feedstock prices, such as propylene, further contributed to the overall decline in Butyraldehyde prices.
In India, which witnessed the most notable price fluctuations, a similar bearish trend prevailed in the Butyraldehyde market during Q1 2024. This decline in prices can be linked to factors such as oversupply and low import prices from exporting nations. Moreover, the decrease in feedstock prices contributed to reducing the production costs of Butyraldehyde. Overall, the market sentiment surrounding Butyraldehyde in Q1 2024 leaned towards the negative side, with prices experiencing a significant decline compared to the same quarter last year. Additionally, the percentage change from the previous quarter in 2024 also reflected a downward trend.
The quarter-ending price for Butyraldehyde in India stood at USD 1855/MT CFR JNPT. This price is indicative of the overall downward trajectory observed in the market and the prevailing bearish sentiment throughout the quarter.
Europe
The first quarter of 2024 has seen a mixed sentiment in butyraldehyde pricing in the European region influenced by various factors. However, the Germany market experienced the maximum price changes during this period. Prices have been influenced by several factors, including low feedstock prices, reduced demand from downstream industries, and overall weak economic conditions in the region.
In Germany, the largest market for butyraldehyde in Europe, prices have seen significant fluctuations. The bearish trend in January and February in prices can be attributed to weak cost support from feedstock propylene and upstream natural gas. Additionally, demand from the construction sector has been low that led to decreased demand of butyraldehyde in the downstream paint, coating, leading to reduced procurement activities and further downward pressure on prices. The sluggish performance of the manufacturing sector in Germany has also contributed to the overall negative market sentiment. While the price increased in March due to shutdown of various feedstock propylene plants shutdown in March that increased the price of propylene that led to high production cost of butyraldehyde. In conclusion, the latest quarter-ending price for butyraldehyde in Germany has been at USD 1480/MT FOB Hamburg.
For the Quarter Ending December 2023
North America
In Q4 2023, Butyraldehyde prices in North America underwent a general decline, marking a shift from the stability observed in Q3. The average decrease, approximately 10-15% compared to the previous quarter, reflected this downward trend.
The moderation of propylene feedstock costs, although still elevated, played a crucial role in the price movement. Lower production costs for Butyraldehyde were facilitated by this shift in propylene prices. Demand for Butyraldehyde remained relatively steady, with notable stability in key downstream industries like food additives and chemical intermediates. However, softer demand in sectors such as paints and coatings exerted downward pressure on prices. Ample inventory levels, especially in the initial half of Q4, further contributed to the decline. Trade dynamics were influenced by increased imports from regions like Europe, where prices were even lower, adding an additional downward force on domestic prices.
Within North America, regional variations were observed, with prices being higher in the Northeast and Midwest compared to the South and West, driven by transportation costs. Areas with higher concentrations of Butyraldehyde-dependent industries experienced more significant price fluctuations, while currency fluctuations, including the strengthening of the US dollar, impacted the competitiveness of imports and influenced domestic prices.
Asia Pacific
The Asia Pacific Butyraldehyde market in Q4 2023 showcased a dynamic pricing scenario. Initially rising from Q3 due to robust regional demand and increased propylene feedstock costs, the trend later diverged across the region. While China experienced downward pressure on prices due to weakened demand, high inventory levels, and government interventions, India maintained relative stability supported by consistent demand and lower feedstock costs. Southeast Asia witnessed volatile price movements influenced by local demand fluctuations and import dynamics. Significant regional variations were evident, with China experiencing a price decline, India maintaining stability, and Southeast Asia displaying volatile movements influenced by local demand and import dynamics.
Propylene feedstock costs remained pivotal, with global moderation in Q4 but persistent regional variations. Strong regional demand, particularly from China's paints and coatings sector, initially contributed to price hikes, but contrasting dynamics emerged later in the quarter, especially in China. Ample inventory, notably in China, exerted downward pressure on prices towards Q4's end. Government interventions in China aimed at curbing price hikes indirectly impacted the Butyraldehyde market. Trade dynamics played a role, benefiting India with lower-priced imports while influencing Southeast Asian markets with global price fluctuations.
Europe
In Q4 2023, Butyraldehyde prices in Europe displayed a nuanced trajectory. Initially, the quarter continued the upward trend from Q3, driven by high propylene feedstock costs. However, a notable shift occurred in November, leading to a decline, concluding the quarter slightly lower than Q3 levels. Within Europe, price variations were influenced by transportation costs, local supply and demand dynamics, and currency fluctuations. Regions farther from production facilities experienced higher prices, and areas with concentrations of Butyraldehyde-dependent industries witnessed more significant price fluctuations. Additionally, the weakening Euro against the US dollar influenced import prices.
Fluctuations in propylene costs, a vital feedstock for Butyraldehyde, played a significant role in the price movement. The initial highs in Q4 were a reflection of elevated propylene costs, while subsequent reductions contributed to the overall decline. Operating rates for Butyraldehyde production were constrained due to high energy prices, despite increased demand from sectors like food additives and fragrances. Ample inventory levels built up earlier in the year, despite production limitations, exerted downward pressure on prices in the latter half of Q4. Geopolitical factors, specifically the ongoing war in Ukraine, indirectly impacted energy costs and economic stability, introducing an element of uncertainty to the market.
For the Quarter Ending September 2023
North America
In the third quarter of 2023, butyraldehyde prices experienced a downward trend due to reduced production costs and decreased demand from various end-use sectors, including paints, automotive, and agrochemical industries. This decline was exacerbated by the low prices of the feedstock (propylene) in the local market, while economic conditions in the US market deteriorated, primarily due to increased inflation pressures The US is expected to steer clear of a recession this year, thanks to its ongoing economic resilience. We have revised the GDP growth projections for both 2023 and 2024 by 0.6 percentage points and 0.4 percentage points, respectively. However, we do not anticipate a prolonged acceleration, and we foresee a notable slowdown in growth for 2024. The global oversupply of the product and its derivatives also influenced the demand for US propylene. Suppliers were not under pressure to sell, and the additional demand resulting from the Shell steam cracker fire slowed down the pace at which prices were declining.
Asia-Pacific
Due to limited demand from downstream sectors such as paints, coatings, and the agrochemical industry, combined with sufficient inventory levels, Butyraldehyde prices decreased in the Asian market throughout Q3. Furthermore, the supply was ample due to consistent imports from major exporting countries like China, which also exerted downward pressure on Butyraldehyde prices in the domestic market. This was exacerbated by sluggish purchasing sentiments amid weak demand from downstream industries such as paints, automotive, and agrochemicals. China's economic growth in the third quarter decelerated due to subdued global demand, deflationary factors, and challenges in the property sector. The world's second-largest economy expanded by 4.9 percent year-on-year in the July-September period, surpassing analysts' expectations of 4.5 percent but exhibiting a slowdown from the 6.3 percent growth recorded in the preceding quarter. However, the influx of affordable imports from overseas markets ensured an adequate supply of the material in the domestic market. During the festive break at the end of the quarter, operational rates declined as buyers had already stockpiled the product before the market closure.
Europe
Butyraldehyde prices in the European market declined in the third quarter of 2023 amidst the moderate demand for butyraldehyde from downstream sectors like agrochemicals and pharmaceuticals, manufacturers have been forced to lower their quoted prices within the domestic market. This, in turn, had led to consistent discounts on both the quantity and volume of the product in the international market, resulting in an overall reduction in costs. During the first half of Q3, there was a continuous increase in crude oil prices in the global market, leading to cost pressures on naphtha and its derivatives. Additionally, there was a notable decrease in new export orders, primarily driven by reduced sales in China and across Europe. Factory employment witnessed a minor decline as companies exercised caution in making significant workforce reductions. Both input costs and factory gate prices experienced a reduction, and manufacturers expressed a pessimistic outlook regarding production prospects for the next quarter. Reports from approximately 10 recyclers and traders within the Plastics Recycling Committee of the Brussels-based Bureau of International Recycling (BIR) highlighted several issues in the sector, including challenges related to the availability of low-cost virgin plastics.
For the Quarter Ending June 2023
North America
In the second quarter of 2023, butyraldehyde prices followed the declining trend on account of declined production costs and diminished demand from end-use (pains, automotive, agrochemical) industries. Retarded prices of feedstock (propylene) in the regional market accompanied by the US market's economic conditions had deteriorated as a result of the increased inflation pressures and concerns about a financial crisis brought on by the failures of Silicon Valley and Signature Bank at the beginning of the quarter. Moreover, towards the quarter's end, the domestic ports faced labor shortages amidst the union strike on the West Coast of the US, crowding the dockyard with pending orders. Moreover, the US federation kept the interest rate on the positive side restricting the buyers from end-use manufacturing industries and compelling the buyers from placing higher orders. The worldwide high supplies of the product and its subsidiaries additionally impacted the interest in US propylene. Providers were not in a frantic situation to sell, and the extra interest coming about because of the Shell steam cracker fire dialed back the speed at which costs were falling.
Asia-Pacific
Because of subdued requests from the downstream paints and covering, the agrochemical industry alongside satisfactory inventories, Butyraldehyde costs have dropped in the Indian market all through April. Moreover, supply has been adequately attributable to consistent inflows of imports from the significant sending out country, for example, China which had additionally overloaded the costs of Butyraldehyde in the homegrown market. Supported by the dull purchasing feelings in the midst of frail interest from the downstream synthetic substances (like in paints, automotive, and agrochemicals). Notwithstanding, the modest imports presented from the abroad market have prompted adequate material accessibility in the domestic market. In addition, the European market staggered on monetary grounds as the district entered a downturn and the European Central Bank raised the financing cost affecting the general ware costs and adversely impacting purchasers and gouging the organization's region.
Europe
Butyraldehyde price dynamics declined throughout the second quarter of 2023 on account of slow demand and other microelement factors Butyraldehyde prices in the German market experienced a decline due to sluggish buying trends among end-users. Although feedstock Propylene prices decreased, their impact on Butyraldehyde prices in the domestic market was limited. Amid economic uncertainties, the demand for Butyraldehyde from the downstream automotive industries remained moderate, leading manufacturers to adjust their price quotations negatively in the domestic market. Several major European Union (EU) economies had reported mixed second-quarter (Q2) performances, with persistently high inflation levels across the bloc. The European refinery solvents market was puzzled by the disappearance of Q2 demand, as the usual seasonality proved to be extremely disappointing, with minimal signs of any improvement. Additionally, the European region faced economic difficulties as it slipped into a recession, and the European Central Bank's decision to raise interest rates had repercussions on overall commodity prices. This move had a negative impact on buyers and put a strain on the administration's domain.
For the Quarter Ending March 2023
North America
Butyraldehyde prices showed mixed sentiments in the USA market during the first quarter of 2023. During the initial of Q1 2023, Butyraldehyde prices increased due to high-cost pressure from feedstock Propylene prices. At the same time, demand for Butyraldehyde from end-user automotive construction has remained stable in the domestic market. Although, during mid of Q1 2023, Butyraldehyde prices declined due to weak buying sentiments among the end-users. Operating rates have remained under check in the wake of sluggish consumption from the domestic and overseas markets. Overall, demand from the downstream automotive construction has remained on the lower side while the sufficient inventories to cater to overall demand. However, during the final of Q1, Butyraldehyde prices have inched higher due to high inflationary pressure and volatile energy prices in the region. Production costs have also increased due to high raw material Propylene prices, forcing the manufacturer to raise their price quotation.
Asia- Pacific
Butyraldehyde prices have shown fluctuation in China market during the first quarter of 2023. During the initial and mid of Q1, Butyraldehyde prices showed upward stability due to stable demand from the downstream automotive and construction industries, while the cheap import offers from South Korea and other exporting countries have led to better imported material availability in the domestic market. Although, during the final of Q1, Butyraldehyde prices dropped significantly due to dull buying sentiments along with sufficient material available in the domestic market. In addition, demand from the downstream automotive and construction industries has remained subdued in the domestic market. Market participants reported limited instances of new orders from the end-user.
Europe
Prices of Butyraldehyde have witnessed a see-saw trend in the European market throughout the first quarter of 2023. During January, Butyraldehyde prices dropped due to sluggish demand from the end-user construction, automotive, and agrochemical industries amid ongoing holiday seasons in the European market. At the same time, lower imports offered from Asia coupled with ample material available have further weighed down the prices of Butyraldehyde in the regional market. Although, during February, Butyraldehyde prices gained upward momentum backed by high-cost pressure from feedstock Propylene prices. On the other side, the European market has seen an increase in procurement activity, though demand from downstream industries has remained steady. However, during March, Butyraldehyde prices declined due to a sluggish buying trend among the end-users. Cost pressure from feedstock Propylene has eased, which resulted in the low production cost of Butyraldehyde in the region. Overall, demand from the downstream industries has remained weak. There were no new orders from end-use industries, so the product ended up in stock. In addition, the market perceived a wait-and-see attitude.
For the Quarter Ending December 2022
North America
Butyraldehyde prices declined continuously in the USA market throughout the fourth quarter of 2022 owing to sufficient inventory and weak demand dynamics. Feedstock Propylene prices have dropped, which eased the overall production cost of the Butyraldehyde in the regional market. Additionally, consumer sentiment has decreased in the region, which has been witnessed by the decline in the manufacturing Purchasing Index, which dipped below 50 (i.e., 49.7) in November, indicating a reduction in both industrial and manufacturing activity. Meanwhile, cheap imports from Asia weighed down the prices of Butyraldehyde in the regional market. Furthermore, demand from the downstream paints and coating and other competitive industries has decreased amid seasonal dullness, supporting the decline in the price realizations of Butyraldehyde in the regional market.
Asia- Pacific
Butyraldehyde prices showed a mixed trend in the Asian market during the fourth week of December 2022. In China, during the first month of Q4, Butyraldehyde prices increased due to limited material availability and bullish demand from the downstream paints and coating along with allied industries. Furthermore, feedstock Propylene prices increased, resulting in the high production cost of Butyraldehyde in the domestic market. However, during the last two months of the quarter, Butyraldehyde prices dropped marginally due to the weak demand dynamics amid soft sentiment caused by the sluggish performance of the construction industry and covid lockdown. At the same time, ample product availability weighed down the prices of Butyraldehyde. Furthermore, manufacturing activity contracted in December. According to the National Bureau of Statistics, Purchasing Manufacturing Index dropped from 48 to 47 during December.
Europe
Prices of Butyraldehyde have witnessed mixed sentiments in the European market during the fourth quarter of 2022. During the first two months, prices have increased due to the high feedstock Propylene prices. In terms of domestic production, operating rates remained under check as energy prices continued to climb higher. The supply chains in the market were disrupted due to prolonged port congestions and vessel bunching, along with labor shortage which halted the supply flow of Butyraldehyde and, thus, limited the product availability in the regional market. Although, during the last month of the quarter, Butyraldehyde prices have dropped slightly due to the weak demand dynamics. The sharp decline in the freight rates, resulting in better imported material availability, weighed down the prices of Butyraldehyde. Meanwhile, demand from the downstream industries has continued to remain subdued due to the weak buying sentiments in the regional market.
For the Quarter Ending September 2022
North America
During the third quarter of 2022, Butyraldehyde prices showed mixed sentiments in the North American region. In the initial part of the third quarter, the Isobutylene price plunged around 2% owing to the weak cost pressure from the feedstock and sluggish demand from the downstream oxo-alcohol industries. However, during August and September, prices were rebound. Bullish sentiment in the feedstock, turmoil in the energy market, and a high inflation rate contributed to the high Butyraldehyde prices across the regional market. In addition, the US market has struggled with contradictory logistics, as interior rail hubs causing a container backlog at Long Beach port have affected the supply chain. Hence, as a result, Butyraldehyde's prices increased by around 2.6% during September 2022.
Asia – Pacific
Butyraldehyde prices showcased mixed trends in the Indian market during the third quarter of 2022. During July, prices of Butyraldehyde plunged by 1.4% as the cost pressure remained weak. Feedstock Propylene prices have decreased, which weighed down the Butyraldehyde to follow the downward trend. Sufficient inventory level and bearish demand from the downstream Oxo- alcohol industries. However, during the mid of Q3, prices slightly rebound due to the high feedstock Propylene prices. Demand from the downstream oxo-alcohol sectors has improved, although supply was not enough to cater to the overall demand. While during the end of Q3, Butyraldehyde prices decreased sharply due to the cheap imports from other Asian countries. Furthermore, consumption levels remained low in the Oxo-Alcohol industries. As a result, prices of Butyraldehyde CFR JNPT were assessed at USD 2489/MT during September.
Europe
Prices of Butyraldehyde showed fluctuation in the European market during the third quarter of 2022. During the initial and mid-Q3, Butyraldehyde prices declined due to the weak feedstock Propylene prices. Furthermore, sufficient inventory level coupled with weak demand from the downstream oxo-alcohol have remained weak, has another reason for the price drop in the regional market. However, during the end of the third quarter, Butyraldehyde prices gained upward momentum, supported by the high production cost amid surging natural gas prices. Furthermore, the speculation of recession across Europe has dampened the demand from the downstream industries. On the other hand, the supply chain was disrupted owing to the prolonged port congestion and vessel bunching coupled with a labor strike, which halted the supply flow of Butyraldehyde and limited the material available in the regional market. As a result, in Germany, prices of Butyraldehyde FOB Hamburg were assessed at USD 2480/MT during September.
For the Quarter Ending June 2022
North America
The price trend of Butyraldehyde remained strong in the North American region, and prices rose throughout the quarter. In the H1 of the quarter, high petrochemical prices rose the feed Propylene costs sharply, due to which Butyraldehyde production costs soared in the region. However, in the mid-quarter, the feed costs stabilized, and Butyraldehyde costs rose marginally till the end of the quarter. The demand from Oxo-alcohol industries remained strong from the phthalate producer due to increased orders from the automotive manufacturers in the region, which contracted till the end of Q2 due to reduced automotive sales, and product offtakes remained firm throughout the Q2 from the domestic market.
Asia
During Q2 of 2022, the price of Butyraldehyde remained fluctuated. However, the price rose by almost 10% from quarter 1 of 2022. Most Asian countries were purchasing crude oil from OPEC except India and China. Due to this, petrochemical prices were uncertain in the region. Volatility in upstream naphtha and feed propylene costs post inflation, and crude oil imports from Russia impacted the petrochemical prices. Fuel and freight costs were oscillating too due to uncertainty in oil costs. The demand from Oxo alcohols industries for phthalate was strong at the beginning of the quarter but diminished slowly towards the quarter end, and offtakes remained moderate in Quarter 2.
Europe
Throughout the quarter, the price trend of Butyraldehyde remained steady, and Butyraldehyde prices rose consistently in the European region. At the beginning of Q2, petrochemical feedstock propylene prices rose sharply, which increased the product's production costs significantly. In the mid-quarter, the feedstock propylene and upstream Naphtha prices stabilized. However, energy and gas costs were firm in the region due to supply shortages of gas, keeping the Butyraldehyde costs on the higher side and raising the product's price marginally until the end of the quarter. The demand from downstream Oxo-alcohol producers remained modest, with average product offtakes from the regional market.
For the Quarter Ending March 2022
North America
North America saw an increase in prices of Butyraldehyde which went up to USD 2335/ton FOB New York in the first quarter of 2022 due to its growing demand from downstream food enterprises in baked goods, frozen dairies, and alcoholic beverages. Depleting supplies and inventories surged the production cost of its raw materials propylene and n-butanol, contributing to the prices of Butyraldehyde. Economic growth in transportation and manufacturing affected the demand prospects, and dramatically, crude oil market sentiments swung changes in economic fundamentals. USA being the major exporter of Butyraldehyde has experienced the surge in the Oxo alcohol market due to the restriction of major businesses between Russia and the USA with ongoing war crisis, which affected the value chains of North America and resulted in higher energy costs.
Asia Pacific
In Asia, the prices of Butyraldehyde were observed to be increasing with a surge of 14.9% in India and 7.8% in Japan in Q1, 2022 as compared to the last quarter of 2021. The prices in Japan began at USD 2440/ton FOB Tokyo in January and went up to USD 2520/ton FOB Tokyo by the end of March. The Philippines being the major exporter of Butyraldehyde, saw an increase in freight charges as a consequence of the ongoing war between Russia and Ukraine, which resulted in an increase in prices. The demand from the downstream sector increased majorly in food additives where it is used as a flavouring agent and for fragrance as well, thereby elevating the prices of Butyraldehyde.
Europe
During Q1 2022, the prices of Butyraldehyde rose in the European continent with a change of approximately 4.9% compared to the last quarter of 2021 in Germany. The prices were hovering around USD 2146/ton-2289/ton FOB Hamburg by the end of the first quarter in Germany. The volatility in the prices of crude petroleum affected the cost of its derivative propylene and butyryl chloride taking hold of the cost of Butyraldehyde. The European companies commercialized a rhodium-based technology for the processing of Butyraldehyde which is slightly costly due to its driving demand in the downstream food market as oxo alcohol and efficiency, thus contributing to increasing prices of Butyraldehyde.
