According to the Commodity Analysis System of Business Society, the market price of isobutyraldehyde fluctuated and increased in February. The market price of isobutyraldehyde increased from 8466.67 yuan/ton at the beginning of the month to 8850 yuan/ton at the end of the month, an increase of 4.53%, with a year-on-year increase of 18% at the end of the month. On February 28th, the isobutyraldehyde commodity index was 44.92, an increase of 0.33 points from yesterday, a decrease of 57.45% from the highest point in the cycle of 105.58 points (2021-09-16), and an increase of 49.14% from the lowest point of 30.12 points on October 7th, 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 February, and their inventory levels were average. The factory price of Lihua Yiisobutyraldehyde at the end of the month is 8750 yuan/ton, which is an increase of 150 yuan/ton compared to the beginning of the month; The market price of isobutyraldehyde in Luxi at the end of the month was 8500 yuan/ton, with a price increase of 500 yuan/ton compared to the beginning of the month; The end of month factory price of Hualu Hengsheng isobutyraldehyde is 9300 yuan/ton, which is an increase of 500 yuan/ton compared to the beginning of the month.

Increased upstream support and better downstream demand

From a cost perspective, the propylene market rose first and then fell in February, with an overall slight increase. At the beginning of the month, the price of propylene fell to a low point, and downstream investors entered the market on dips, resulting in an increase in trading volume and a wave of increase in propylene prices. After the holiday, downstream demand fell short of expectations and some inventory was mainly consumed. Upstream goods flow is not smooth, and prices are under pressure and declining. At the end of the month, due to the increase in prices of some downstream products and propylene, profits rebounded, driving downstream active entry into the market and slightly increasing propylene prices.

From the demand side, the downstream market for new pentanediol saw a slight increase in February. The market price of neopentyl glycol has increased from 10200 yuan/ton at the beginning of the month to 10475 yuan/ton at the end of the month, an increase of 2.70%. At the end of the month, prices increased by 5.06% 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 March, 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.