Butyric Acid Experiences Growth in Its Price in the U.S. This Month

For the entirety of January 2023, the price of Butyric Acid in the U.S. has been falling. However, this month, there has been an increase in price in the market.

The observations made by ChemAnalyst indicate that during the first three weeks of this month, the price of Butyric Acid has increased by nearly 20% per M.T. The average cost is now around $1,715/M.T. as compared to $1,242/M.T. at the end of last month.

Butyric Acid is a propylene-derived fatty acid that is used in the production of a variety of products, such as food additives, pharmaceuticals, and fragrances, and there have been rising demands for organic acids such as this one for different applications such as dietary supplement and food flavor enhancer. The rising prices of Butyric Acid have caused concern among businesses that rely on it for their production.

There are a few factors that have contributed to this rise in prices.

The first reason is the limited availability and strong demand for this commodity from downstream industries, because of which sellers raised their quotations, and manufacturers adjusted the price of Butyric Acid in the region.

A second factor contributing to the increase in price is the rising demand for animal feed, which is a major market for Butyric Acid. This increased demand is due to the growth of the livestock industry, as well as a need for more animal feed in light of recent weather events like winter storms.

Finally, economic conditions around the world have caused some companies to stockpile Butyric Acid in preparation for any possible shortages in the future. This stockpiling has increased demand and put upward pressure on prices.

As on 17th February 2023, the cost of Butyric Acid stood at USD 1,715 per M.T. on FOB – Houston basis, and the firm anticipates the price to increase further by 3.5% in the month of March.