For the Quarter Ending December 2024
North America
In Q4 2024, Allyl Chloride prices in the USA exhibited a marginally upward trend, influenced by supply chain adjustments and downstream demand from the epoxy resin segment. Early in the quarter, subdued demand in key end-use sectors such as automotive and construction, combined with ample inventories, kept the market relatively stable. Seasonal slowdowns in epoxy resin consumption and cautious procurement strategies by buyers further tempered price movements.
However, production cuts and logistical challenges, including port congestion and potential tariff hikes, introduced supply-side pressures. These factors were mitigated by stable feedstock costs and consistent domestic manufacturing output, which supported price resilience amid weaker fundamentals.
The construction sector, a significant consumer of epoxy resins, showed mixed performance. While October saw robust housing activity driven by favorable mortgage rates, demand declined in November and December due to rising rates and seasonal slowdowns. This trend limited the potential for stronger price gains in Allyl Chloride.
Overall, Allyl Chloride prices in the USA experienced marginal growth in Q4 2024, underpinned by supply chain adjustments and steady, albeit cautious, downstream demand amidst economic and seasonal headwinds.
Asia
In Q4 2024, Allyl Chloride prices in the APAC region exhibited a marginal upward trend, influenced by fluctuating demand and supply dynamics across India, a key market. In October, prices rose, driven by robust demand from the construction sector during the festive season and steady upstream costs. Increased container traffic at Jawaharlal Nehru Port Authority supported import flows, despite tightening capacity on India-Asia routes. Housing and infrastructure development during Navratri and Diwali bolstered demand, offsetting inflationary pressures in the construction sector. In November, prices increased due to supply disruptions caused by a looming port strike and slower export growth from China. Preemptive stockpiling by manufacturers stabilized short-term supply, while steady demand from epoxy resin production and construction activities supported the price rise. However, post-festive season slowdowns and geopolitical uncertainties tempered growth. By December, prices declined as steady production and adequate supply balanced the market despite fluctuating raw material costs. Weak demand in the epoxy resin segment and subdued infrastructure activity weighed on prices, limiting consumption. Overall, Q4 2024 reflected a marginally bullish trend for Allyl Chloride prices, shaped by seasonal demand variations, supply chain challenges, and cautious downstream activity.
Europe
In Q4 2024, Allyl Chloride prices in Europe exhibited a moderate upward trend, influenced by supply-side constraints and inflationary pressures within the downstream epoxy resin market. Early in the quarter, production cuts and logistical disruptions, including technical issues at key facilities and congestion at major ports such as Hamburg, tightened regional supply. These challenges helped stabilize prices despite subdued demand from the construction sector, a significant end-user of epoxy resins. By November, steady domestic production and rising freight costs from Asia further contributed to a balanced market environment. However, demand from Europe’s construction industry remained lackluster, with declining new project orders and contracting activity amid weak economic sentiment. Germany's construction sector, a major consumer of epoxy resins, faced significant headwinds, as reflected in the construction PMI contraction. In December, Allyl Chloride prices stabilized due to controlled production rates and steady feedstock costs. Nonetheless, limited downstream demand from housing and commercial construction sectors, coupled with thin producer margins, capped significant price increases. Overall, Allyl Chloride prices in Europe in Q4 2024 experienced modest growth, driven by constrained supply and inflationary pressures, with weak construction demand tempering broader market gains.
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.
