Early December 2024 witnessed a decline in Boron Trifluoride prices in both the Indian and US markets, reflecting broader economic trends and sector-specific dynamics.

In India, the 1.5% decline in Boron Trifluoride prices was driven by weakened demand in the pharmaceutical segment, exacerbated by rising inflation, competitive pressures, and a slowdown in the manufacturing sector. These factors collectively reduced new orders and overall demand of commodities including Boron Trifluoride. Ongoing inflationary pressures and tightened monetary policies further dampened consumer spending, leading to additional downward pressure on Boron Trifluoride prices. Market participants, holding sufficient inventories, opted to clear stock at lower rates to manage the supply-demand imbalance. In nutshell, the overall market sentiment remained cautious, influencing purchasing behaviour and contributing to the price decline as reflected in Boron Trifluoride.

During the first half of December 2024, India's manufacturing sector seems to be facing significant challenges. The economic activity indicator declined in November, indicating decelerated growth rate due to increased competition, rising inflation, and a slowdown in factory orders. While international demand remained strong, supporting continued manufacturing growth with new export orders reaching a four-month high, the expansion of output began to slow as cost pressures intensified.

In the USA, Boron Trifluoride prices also continued their downward trend in early December 2024, with prices falling by 1.7%. The supply of Boron Trifluoride remained stable, supported by the appreciation of the US dollar and the easing of logistical constraints. Despite some operational challenges, domestic production levels of Boron Trifluoride were sufficient to meet market demands. Imports adequately covered any gaps. This ensured there were no significant supply disruptions. The easing of logistical constraints, particularly following the resolution of the ILA strike, facilitated smoother supply chains, allowing U.S. importers to benefit from reduced shipping costs.

The US inflation report for November 2024 indicated a slight uptick in price growth, with the Consumer Price Index (CPI) increasing by 2.7% annually, slightly higher than October's 2.6% rise. This growth aligned with market expectations but underscored the ongoing challenge of controlling inflation amidst new economic pressures. The Federal Reserve faced a difficult task in navigating this situation. While analysts predict a quarter-point rate cut at the Fed's upcoming December meeting, further reductions remain uncertain. The strain of higher rates was already being felt by less affluent consumers, adding complexity to the Fed's policy decisions.

As winter set in, a seasonal slowdown persisted in the U.S. market. Several firms scheduled plant shutdowns for maintenance to manage the supply-demand imbalance. The market remained well-supplied with inventories, exerting downward pressure on Boron Trifluoride prices. With year-end approaching, buying interest remained subdued.

Looking ahead, Boron Trifluoride prices are expected to remain bearish in the near term, driven by sluggish demand from end-use industries.