Global C9 Solvent Prices Rise in the Middle East, Decline in Asia Amidst Low Demand

Throughout July 2024, the price of C9 Solvent in the Asian market decreased by approximately 1.5% due to low demand for C9 Solvent from the construction sector, which was adversely affected by unfavourable weather conditions. Data from the India Meteorological Department (IMD) reported eight instances of exceptionally heavy rainfall during the month. The IMD defines ‘exceptional heavy rainfall’ as precipitation in a single day that equals the highest recorded rainfall at a station or nearby during the month or season. This excessive rainfall significantly disrupted construction activities, leading to decreased demand for C9 Solvent and contributing to the observed price decline.

In the South Korean market, the price of the C9 Solvent remained stable due to a balanced demand and supply scenario. Despite an average demand for C9 Solvent from the downstream paints and coatings industry, the market saw consistent pricing. This stability persisted even with rising feedstock crude oil costs, as the supply of the C9 Solvent in the country remained steady. The equilibrium between demand and supply effectively countered the potential impact of increased production costs, maintaining a stable pricing environment for C9 Solvent.

In the Middle East market, the price of the product exhibited an upward trend this month, driven by a 4% increase in feedstock Crude Oil prices due to heightened geopolitical tensions in the region. The rise in Crude Oil prices has had a direct impact on the cost of C9 Solvent. Additionally, Saudi Arabia is anticipated to raise the price of its crude grades loading for Asia in September, supported by higher benchmark prices in the Middle East. However, weak refining margins could potentially limit the extent of these price hikes. Saudi Aramco, the world’s leading crude oil exporter, is expected to increase the official selling price (OSP) of all its crude grades for Asia next month. This anticipated adjustment reflects the ongoing influence of geopolitical factors and market conditions on pricing dynamics in the region.

According to ChemAnalyst, the price of C9 Solvent in the Asian region may stabilize in August 2024, as anticipated rainfall could impact the end-use construction industry. This weather pattern may affect construction activity and consequently influence solvent demand. In contrast, prices of C9 Solvent in the Middle East are expected to continue rising due to volatility in feedstock Crude Oil prices and increased freight costs driven by ongoing geopolitical tensions in the region. These factors are likely to create a challenging pricing environment for C9 Solvent in the Middle East, while the anticipated stabilization in Asia reflects a more balanced market scenario influenced by seasonal weather conditions.