Tertiary Butyl Alcohol Prices in Germany Plummet Amidst Surplus and Weakened Demand

Hamburg, Germany: The prices of Tertiary Butyl Alcohol in Germany have been declining since the beginning of December 2023 due to challenges in the domestic market, including rising supply, falling manufacturing costs, and consistently low demand. Additionally, market sentiments for Tertiary Butyl Alcohol have been influenced by several factors such as an unfavorable macroeconomic situation, fluctuating input costs, geopolitical tensions, and various other elements.

Demand for Tertiary Butyl Alcohol from downstream markets, including solvents, chemical intermediates, and extractants in the cosmetics and pharmaceutical industries, has remained low. Simultaneously, domestic inventories of Tertiary Butyl Alcohol were observed to be on the higher side. As of December 22, 2023, the prices of Tertiary Butyl Alcohol FOB Marl were assessed at USD 970/MT.

Additionally, an excess supply situation has surfaced in the local markets for Tertiary Butyl Alcohol, with stock levels remaining elevated due to sluggish demand. Additionally, minimal market transactions were recorded domestically, but vendors demonstrated improved performance despite subdued trading activities in the regional market.

The industry has experienced a slower-than-anticipated pace due to off-season lethargy in the domestic market, fostering bearish sentiments for Tertiary Butyl Alcohol manufacturers. Additionally, the ifo Business Climate Index saw a decline from 87.2 points in October 2023 to 86.4 points in November 2023. Moreover, persistent sluggishness in downstream demand, coupled with unfavorable production costs, has exerted sales pressure on sellers, prompting them to lower prices to clear accumulating inventories.

German inflation fell more than predicted in November 2023, reaching its lowest level since June 2021, according to Federal Statistics Agency data released recently. According to the statistics office, a 4.5% year-on-year decline in energy costs notably dampened inflation in November, a so-called base effect due to the extremely high cost of energy in November 2022.

As per ChemAnalyst, Tertiary Butyl Alcoho prices are likely to decline further in the upcoming weeks due to high offloading practices in the region. During this time of the year, many businesses prioritize optimizing their financial statements as the fiscal year comes to a close.

Following the holiday season in Europe, businesses can anticipate a temporary decline in demand for petrochemicals such as Tertiary Butyl Alcohol. This may prompt proactive destocking measures to prevent the accumulation of surplus inventory. In certain industries, production schedules are strategically adjusted to accommodate reduced activity or shutdowns during the holiday season. This results in the modification of inventory levels, especially in petrochemical sectors like Tertiary Butyl Alcohol.