For the Quarter Ending September 2024
North America
In the quarter ending September 2024, the North American Allyl Chloride market displayed price stability, despite a complex mix of influencing factors. The third quarter was marked by decreased demand from the downstream plasticizer and epoxy resin manufacturing industries, primarily due to a slowdown in the construction sector and weaker export markets.
Additionally, feedstock costs surged, with propylene prices climbing throughout the quarter, driven by production disruptions at key facilities and a tighter supply environment. Supply chain challenges, exacerbated by hurricanes and plant shutdowns, further strained market conditions. Despite these pressures, Allyl Chloride prices remained steady, largely because of competition from bio-based plasticizers, which introduced downward pricing pressure.
This competitive dynamic counteracted the upward pressure from rising propylene costs, leading to a balanced market towards the end of the quarter. In the U.S., propylene prices continued to escalate due to concerns about an intensified hurricane season and ongoing production issues. However, the opposing forces of increased feedstock costs and softer downstream demand resulted in a stable pricing environment for Allyl Chloride in the region.
Asia
In the quarter ending September 2024, the Allyl Chloride market in Asia displayed mixed pricing trends, driven by several key factors. In September 2024, the Indian market saw a marginal price surge, supported by a gradual recovery in downstream demand, especially from the Epichlorohydrin sector. Increased production costs also contributed to elevated Allyl Chloride prices. In July 2024, Allyl Chloride prices experienced a significant increase in India due to supply constraints, rising freight costs, and reduced production rates in key exporting countries. Higher selling prices in the Chinese market and the aftermath of Hurricane Beryl, which disrupted production in the U.S., also contributed to the price surge. The shortage of containers and low inventory levels exacerbated the situation, driving up prices further. Imports of U.S.-origin Allyl Chloride gained momentum in Asia, with tight domestic supplies and high local prices in the U.S. contributing to strong pricing. By August 2024, the market stabilized as lower demand from the Epichlorohydrin production sector and a slowdown in export demand helped maintain a balance between supply and demand. Despite mixed global trends, India’s Allyl Chloride market remained relatively stable, with spot negotiations slowing and sellers holding off on new offers. This cautious market sentiment, coupled with a weak downstream sector, contributed to the stagnant conditions in the Indian market during the third quarter of 2024.
Europe
In the quarter ending September 2024, the European Allyl Chloride market exhibited a largely stable pricing environment, shaped by several key factors. Weak demand from the downstream plasticizer and epoxy resin manufacturing industry, adequate supply levels, and stable upstream raw material costs contributed to the overall balanced market conditions, leading to limited price fluctuations throughout the quarter. Germany, in particular, saw the most significant price movements, though Allyl Chloride prices remained relatively steady. The market stability was partly due to supply constraints caused by ongoing supply chain disruptions, including port strikes and floods that affected operations in the region. Despite these challenges, demand from downstream industries, especially the plasticizer and construction sectors, remained lackluster. The construction sector in the Eurozone, which is a key consumer of plasticizers, continued to face weak growth, particularly in the new housing segment, further dampening demand for Allyl Chloride. The subdued demand across multiple sectors exerted downward pressure on prices. However, this was balanced by supply constraints, leading to a stable market sentiment with minimal price movement during the third quarter of 2024. Overall, the market reflected a cautious outlook with limited demand recovery and ongoing operational challenges.
