Antwerp, Belgium: In March 2024, the H-Acid global market witnessed an incline in its trend due to the disruption in the supply and demand equilibrium as the demand from the downstream Textile sector was strong but an insufficient amount of inventories was present which led to the elevation in the prices of the commodity since the demand was not fulfilled. Also, the ongoing Farmer’s dispute in the European region and the post-Lunar New Year effects have contributed to the price hike of H-Acid.

In the Belgian H-Acid market, prices inclined by 2.22% and reached USD 4600/MT (CFR-Antwerp) in March 2024 due to increased demand from the textile industry, which surpassed available inventory levels. Furthermore, ongoing farmer protests in Europe, including Belgium, disrupted the H-Acid supply chain. The farmer protests caused disruptions in the commodity's supply chain, with road blockages hindering transportation. Recently, farmers barricaded streets around the European Union headquarters in Brussels, symbolically using manure to protest low incomes, cheap food imports, and excessive red tape. Consequently, the supply chain was affected by the dispute. Furthermore, heightened demand from the Chinese market contributed to a rise in commodity prices. In the upstream market, Crude Oil prices followed a similar upward trend, leading to increased production costs. According to the Xenata Shipping Index, freight charges from the Asian market to Europe decreased by 17.40%. Additionally, heightened trading between the Chinese and Belgian markets aimed to meet rising demand, leading the Belgian market to closely track Chinese H-Acid prices.

Similarly, In comparison to the demand from the downstream Textile sector, the available inventories of H-Acid were insufficient, leading to heightened trading activities from China to South Korea to meet the increasing demand. However, the H-Acid market experienced seasonal fluctuations, with various factors supporting pricing dynamics. These factors included the traditional surge in market activity following the Lunar New Year holiday, which exerted upward pressure on demand and subsequently on prices in the short term. Subsequently, after the conclusion of the Lunar New Year holiday, price indications stabilized following a period of softening. With China re-entering the market, there was an observed increase in pricing, aligning with expectations for year-on-year trends by the end of the first quarter. According to the Xenata Shipping Index, freight charges from the Far-East Asian market to the Southeast Asian market decreased by 2.36%.

In the US market, In March 2024, the H-Acid market saw a rise as demand from the downstream Textile sector outpaced available inventories. This led to increased imports from the Chinese market to fulfill the growing demand from downstream Textile sectors in the US. Despite stable prices for Naphthalene and Sulphuric Acid in the feedstocks market, the trend for Ammonia experienced a decline. However, due to a supply deficiency, the prices of H-Acid increased, despite the lower production cost of the product. According to the Xenata Shipping Index, there was a decrease of 17.40% in freight charges from China to the US. Regarding the spread, the difference between Sulphuric Acid, Naphthalene, Amoonia, and H-Acid broadened showcasing the bullish market scenario of the product.

According to ChemAnalyst, the prices of H-Acid are expected to rise in the upcoming week. This anticipation stems from a potential surge in demand from downstream textile sectors, which could disrupt the equilibrium between supply and demand for the product, consequently leading to an increase in H-Acid prices.