According to the Commodity Analysis System of Business Society, the market price of isobutyraldehyde fluctuated and increased in January. The market price of isobutyraldehyde increased from 8233.33 yuan/ton at the beginning of the month to 8466.67 yuan/ton at the end of the month, an increase of 2.83%, with a year-on-year increase of 8.09% at the end of the month. On January 31, the isobutyraldehyde commodity index was 42.98, a decrease of 0.51 points from yesterday, a decrease of 59.29% from the highest point in the cycle of 105.58 points (2021-09-16), and an increase of 42.70% from the lowest point of 30.12 points on October 7, 2022. (Note: The cycle refers to the period from September 1, 2021 to present)

From the supply side perspective, mainstream domestic manufacturers of isobutyraldehyde saw a slight increase in prices in January, and their inventory levels were average.

Upstream support is average, downstream demand is good

From a cost perspective, the domestic propylene market stopped falling and rose in January. At the beginning of the month, propylene inventories were high, and in order to stimulate sales, prices were lowered and inventory was released. Effectively stimulating downstream procurement efforts, propylene takes advantage of the situation to drive up prices. In the middle of the month, some propylene units experienced a decrease in production due to inverted profits, resulting in a tightening of the supply side and a stable demand side. As a result, propylene continued to rise. Subsequently, it rose to a high level, leading to a narrowing of the price difference with downstream polypropylene and suppressing downstream demand, resulting in a slight correction at the end of the month.

From the demand side, the downstream market for neopentyl glycol saw a slight increase in January. The market price of neopentyl glycol has increased from 9800 yuan/ton at the beginning of the month to 10200 yuan/ton at the end of the month, an increase of 4.08%. At the end of the month, prices increased by 7.37% year-on-year. The downstream market has slightly increased, and downstream manufacturers have increased their enthusiasm for purchasing isobutyraldehyde.

Small fluctuations and gains in the future market

In mid to early February, the domestic isobutyraldehyde market may experience slight fluctuations and gains. The downstream market for new pentanediol has slightly increased, and downstream manufacturers are more proactive in purchasing isobutyraldehyde. The upstream propylene market is showing an upward trend, with increased cost support. Under the contradiction of supply and demand, the product trend is on the rise. Business Society’s isobutyraldehyde analysts believe that in the short term, the domestic isobutyraldehyde market may experience slight fluctuations and increases due to various factors such as supply and demand and raw materials.