OfBusiness Chemicals Dailies | 19th July 2023

Price

• In the local market, importers have reduced the price of N-Butanol by Rs.2/kg, now priced at Rs.80++ Ex Kandla with a credit term of 60 days.
• Traders are offering N-Butanol at Rs.81++ Ex Kandla with a credit term of 90 days.
• In response to the importers’ price cut, domestic manufacturer Andhra Petro Chemicals has lowered its N-Butanol price by Rs.1/kg, now at Rs.80++ Ex Vishakapatnam for cash payments.
• For retail customers, the barrel prices of N-Butanol have also dropped by Rs.2/kg.
• With cash payment terms, it is now available at Rs.86++ Ex Kandla and Rs.89++ Ex Vishakapatnam, Rs.88++ Ex Ahmedabad, and Rs.90++ Ex Hyderabad.

Demand and Supply

• The N-Butanol market is witnessing thick supplies from imports and domestic manufacturers. However, the demand from the primary consumers, such as the paints and coatings industries, could be higher due to the off-season.
• Additionally, downstream industries like Pharma are experiencing reduced production rates, leading to weaker demand.
• The silver lining is the optimistic demand for N-Butanol Acetate, as Ink manufacturers are showing good interest this month.
• The estimated demand for N-Butanol in India is approximately 8.5 kt/month.

News

• In the international market, there have been some notable price changes. Upstream Natural Gas prices have decreased by 0.23% to 2.62$.
• Feedstock FOB Korea Propylene prices, on the other hand, have increased by 5$ to 725$/Mt.
• As for N-Butanol’s downstream CFR, China’s price has decreased by 5$ to 1055$/Mt.
• In the plant news, Shanghai Wujing, a lead Acetic Acid manufacturer in Shanghai, China, restarted its Unit 2 operations last week. The plant has an annual production capacity of 500 kt.

OFB’s Opinion

• It is anticipated that N-Butanol prices may exhibit volatility and mixed trends this week. The market is influenced by surplus stock at ports and from domestic manufacturers, as well as lower replacement costs and reduced downstream demand.
• However, any rise in feedstock prices, particularly Propylene, can have an immediate impact on N-Butanol prices. Buyers are advised to closely monitor FOB Korea Propylene prices to gauge the expected trend in N-Butanol.