August Allyl Chloride Prices in Asia Show Marginal Increase

The Allyl Chloride market observed a modest uptick in Asia during the mid-third quarter of 2024, driven by enhanced downstream demand from Epichlorohydrin production, as Epichlorohydrin is primarily synthesized from Allyl Chloride, which is derived from propylene. Seasonal factors have positively impacted demand, particularly from the domestic construction sector, a trend expected to persist through the third quarter. Freight costs from Europe and Asia have gradually eased, and the previously tight container availability in Asia has also started to alleviate. Additionally, a slight increase in feedstock Propylene prices, coupled with a modest rise in liquid chlorine prices, has influenced the current price trends of Allyl Chloride in Asia.

In Asia, participants in the Allyl Chloride market are encountering increasing challenges in moving shipments as dealer offers continue to climb. Downstream buyers have displayed minimal interest in inquiry-based purchases, opting to concentrate on immediate spot prices instead, which has supported a stable market environment. 

Prices for pending orders have remained relatively high, with trading activity primarily driven by essential needs, thereby contributing to market stability. On the cost side, domestic prices for Propylene, a key feedstock for Allyl Chloride production in the region, have been on the rise since July and stabilized in August. This ongoing tightness in the upstream market has provided only limited cost support for Allyl Chloride producers in Asia.

Recently, the market price of feedstock Propylene saw a slight increase, along with a modest rise in liquid chlorine prices. Although supply volume increased, it limited further price hikes. Thus, the overall cost pressures persisted in the Allyl Chloride market in Asia during August 2024.

Moreover, from the downstream demand perspective, the Allyl Chloride demand in Epichlorohydrin production rose marginally during August 2024. There was a limited inventory, as some factories opted to temporarily shut down to manage equipment load under inventory pressure. In early August, several production enterprises carried out equipment maintenance, leading to a tightened market supply.

Additionally, In India, Mumbai's real estate market has reached new peaks, achieving its highest property registrations and stamp duty revenue in a decade. In August 2024, the city saw a significant increase in property registrations. At the same time, rising regional consumption in the Epichlorohydrin market supported the upward trend of Allyl Chloride prices.

As per ChemAnalyst, the Allyl Chloride market in Asia is expected to experience a marginal surge in September 2024 due to improvement in the downstream Epichlorohydrin production consumption.