SunSirs: Due to Rising Costs and Increased Demand, the Price of Isobutyraldehyde Fluctuated and Rose in February

Isobutyraldehyde prices fluctuated and trended upward

According to SunSirs' commodity price analysis system, as of February 5th, the domestic price of isobutyraldehyde was 6,333.33 RMB/ton, a fluctuating increase compared to the price of 5,766.67 RMB/ton on January 1st, representing a 9.83% increase; and a significant increase compared to the price of 5,750 RMB/ton on January 20th, representing a 10.14% increase. The price of propylene fluctuated upwards, and in January, the operating rate of isobutyraldehyde manufacturers increased to around 85%. From the latter half of the month onwards, the operating rate of isobutyraldehyde manufacturers decreased slightly, leading to low inventory levels and a tightening of supply, resulting in a sharp increase in the price of isobutyraldehyde.

The price of the raw material propylene was fluctuating and rising

According to SunSirs' commodity price analysis system, as of February 5th, the price of propylene was 6,437.67 RMB/ton, showing a slight increase of 0.26% compared to the price of 6,421 RMB/ton on January 27th, after an initial decline. Compared to the price of 5,717.67 RMB/ton on January 1st, the price has increased significantly by 12.59%. The numerous maintenance shutdowns of propylene production facilities had led to a temporary shortage of propylene supply, resulting in fluctuating price increases. Cost support, particularly the rising cost of isobutyraldehyde, provided significant support for the price increase.

Isobutyraldehyde manufacturers' production levels fell from their previous high.

In January, Yanzhou Mining's Lunan Chemical plant, with an annual production capacity of 30,000 tons of isobutyraldehyde, operated at a low level; Anqing Shuguang's isobutyraldehyde plant, with a designed capacity of 25,000 tons/year, operated normally, with some production shifted to other products; Shandong Lihua Chemical's 25,000 tons/year isobutyraldehyde plant shifted to other products; Jiangsu Huachang's old 30,000-ton isobutyraldehyde plant operated normally, and its new plant started production; Dongming Dongfang Chemical's 15,000 tons/year octanol plant resumed operation. Overall, isobutyraldehyde manufacturers maintained high operating rates, but in February, the operating rate of isobutyraldehyde manufacturers decreased slightly to around 83%. The decrease in isobutyraldehyde production provided greater support for price increases.

Increased demand for isobutyraldehyde

In February, the price of neopentyl glycol increased. On February 5th, Yantai Wanhua quoted a price of 7,650-7,800 RMB/ton, a fluctuating increase compared to the price of 7,250-7,400 RMB/ton on January 20th. The increase in neopentyl glycol prices, coupled with pre-holiday stockpiling before the Spring Festival, led to a short-term increase in demand for isobutyraldehyde, resulting in a fluctuating increase in isobutyraldehyde prices.

Market Outlook:

According to SunSirs' isobutyraldehyde industry analyst: In terms of costs, the significant increase in propylene prices, a key raw material, was providing strong support for higher isobutyraldehyde costs; in terms of supply and demand, a slight decrease in isobutyraldehyde production had led to a tightening of supply, further boosting the upward momentum of isobutyraldehyde prices; in terms of demand, the increase in neopentyl glycol prices, coupled with pre-holiday stockpiling before the Spring Festival, has increased demand for isobutyraldehyde, providing additional support for price increases. Looking ahead, the significant increase in costs, combined with tightening supply and increased demand for isobutyraldehyde, will further support price increases. Therefore, the price of isobutyraldehyde is expected to fluctuate upwards in the future.

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