For the Quarter Ending September 2024
North America
In Q3 2024, the North American Alpha Pinene market exhibited a generally stable pricing environment, despite some fluctuations. Demand remained steady across key sectors, such as fragrances, flavours, and pharmaceuticals, which are substantial consumers of Alpha Pinene. Seasonal increases in production activities, especially in the fragrance sector during summer months, supported consumption levels and maintained a steady demand base. The market's resilience in the face of varying demand conditions helped ensure a relatively balanced pricing trend.
On the supply side, the market faced challenges, including limited availability of raw materials and occasional logistical disruptions, which influenced market conditions. These factors led to minor price adjustments as manufacturers adapted to the changing supply landscape. Despite these hurdles, most producers managed to maintain stable supply levels, ensuring that disruptions did not significantly impact overall market sentiment. This approach allowed manufacturers to continue meeting demand even as supply chains faced temporary strains.
Towards the end of the quarter, the focus shifted towards inventory management and aligning production strategies with evolving market dynamics. The quarter concluded with a steady pricing sentiment, indicating that the balance between supply and demand was effectively managed throughout the period. The ability to navigate supply challenges without major disruptions or plant shutdowns positioned the market for potential growth in the upcoming quarters, especially as seasonal demand patterns begin to shift
APAC
In Q3 2024, the Alpha Pinene market in the APAC region experienced an upward pricing trend, characterized by a steady increase in demand across various industrial applications. The growth in manufacturing activities, especially in the production of resins, fragrances, and flavours, played a key role in driving demand for Alpha Pinene. Additionally, stable supply chains and strategic stockpiling by major manufacturers helped maintain a steady flow of the product, supporting the rising price trend throughout the quarter. India, in particular, stood out in the regional market, with significant price movements observed. The country’s market dynamics reflected heightened demand, spurred by local manufacturing and export activities. Competitive pressures and seasonal fluctuations further shaped the pricing environment in India, leading to noticeable adjustments in prices. Despite global economic uncertainties and fluctuating market conditions, the overall sentiment in the APAC region remained positive, contributing to a sustained price increase. The quarter concluded with Alpha Pinene prices reaching USD 2,935 per MT on CFR - JNPT in India, highlighting the overall bullish trend. The stable supply situation, with no major disruptions or plant shutdowns reported, ensured that the market was able to meet the increased demand efficiently. The interplay of these factors culminated in a positive pricing environment, reflecting the resilience and adaptability of the APAC Alpha Pinene market during Q3 2024.
Europe
The Alpha Pinene market in Europe during Q3 2024 faced a challenging pricing environment, marked by a downward trend due to weakening demand from primary end-use sectors. Key industries such as pharmaceuticals and flavours, which are major consumers of Alpha Pinene, saw a reduction in activity, leading to decreased demand. Additionally, the availability of alternative synthetic ingredients put competitive pressure on the market, further influencing price declines. The oversupply in the market, driven by high production levels earlier in the year, also contributed to the price adjustments observed during this period. In Germany, which witnessed the most significant price movements within the region, manufacturers had to adjust production rates to better align with the softer market conditions. Supply chain optimizations were employed to manage costs, but the overall sentiment remained cautious due to the broader economic uncertainties affecting consumer spending and industrial activity. As the quarter came to a close, the market for Alpha Pinene in Europe remained under pressure, with a focus on managing inventories and navigating the subdued demand scenario.
For the Quarter Ending June 2024
North America
The second quarter of 2024 for Alpha Pinene in the North American region was marked by a consistent downward pricing trend. This period saw a persistent decline in Alpha Pinene prices due to a confluence of factors significantly impacting the market. Primarily, the reduction in feedstock costs led to lower production expenses, thereby exerting downward pressure on Alpha Pinene prices. Additionally, subdued demand from key sectors such as adhesives and fragrances further exacerbated the price decline, as these industries faced slower growth and reduced consumption of Alpha Pinene.
In the United States, the most pronounced market changes were observed. The overall market trends reflected a bearish sentiment, with high inventory levels and reduced demand contributing to the persistent price drop. Despite a moderate surge in the U.S. manufacturing PMI to 51.3 in May, indicating an optimistic production outlook, this did not translate into increased Alpha Pinene prices due to overstocked inventories and stagnant demand from downstream industries. Seasonality also played a role, with lower demand typically observed during this period.
When compared to the previous quarter in 2024, there was a modest decrease, indicating a gradual but noticeable decline. Within the quarter, a further price reduction was noted between the first and second halves, underscoring the persistent bearish trend. The quarter concluded with Alpha Pinene prices reflecting the overall negative pricing environment driven by a combination of lower raw material costs, subdued demand, and high inventory levels.
APAC
During Q2 2024, the Alpha Pinene market in the Asia-Pacific (APAC) region experienced a notable decline in prices, influenced by several critical factors. The quarter was marked by a significant reduction in demand from the fragrance and flavour sectors, leading to a scaled-back production yet persistent high inventory level. This supply-demand imbalance exerted downward pressure on prices. Additionally, external economic factors, such as fluctuating raw material costs and global market uncertainties, further compounded the bearish pricing environment. There were no reported plant shutdowns or disruptions contributing to the supply dynamics, indicating that the price decline was driven predominantly by market fundamentals and subdued consumption. Focusing on India, which witnessed the most pronounced price changes, the overall trend followed a downward trajectory. Seasonal factors played a role, as the absence of major festive seasons during this quarter led to decreased consumer demand for perfumery products, directly impacting Alpha Pinene consumption. The market sentiment was negative, reflected in a significant decrease from the previous quarter. Furthermore, a comparison of the first and second halves of the quarter showed a gradual decline of 2%, underscoring the persistent downward trend. The quarter concluded with Alpha Pinene prices at USD 2,819/MT CFR JNPT in India, representing a consistent negative pricing sentiment. The prevailing market conditions, characterized by high inventories and subdued demand, painted a less than favourable picture for Alpha Pinene pricing in the region during Q2 2024.
Europe
In Q2 2024, the Alpha Pinene market in the Europe region has been characterized by a consistent downward trend in prices. Various factors have converged to exert significant downward pressure on the market. Key among these has been the persistent weak demand from critical downstream industries, such as adhesives and fragrances, which have scaled back procurement activities due to economic uncertainties. Moreover, the reduction in feedstock prices significantly contributed to the overall decrease in Alpha Pinene prices. High inventory levels across the region further exacerbated the situation, prompting suppliers to offer substantial discounts to clear their stocks. The stability of input costs, coupled with improved logistics and supply chain efficiencies, alleviated some supply constraints, thereby supporting the decreasing price trend. Focusing exclusively on Germany, the country observed the most pronounced changes within the region. Overall trends indicated a decline driven by reduced procurement activities in key manufacturing sectors, influenced by both global economic pressures and localized market contractions. The seasonality effect was evident as demand typically wanes during the summer months, aligning with the observed price decrease. Comparing Q2 to the previous quarter of 2024, there was a further illustration of the negative sentiment pervading the market. The first half of the quarter saw higher prices than the latter half, marking a notable decrease. Concluding this quarter, the pricing environment for Alpha Pinene was distinctly negative, driven by the interplay of reduced demand, oversupply, and stabilized input costs.
For the Quarter Ending March 2024
North America
During Q1 2024, the alpha-pinene market witnessed a significant upward trend in prices, primarily fuelled by robust demand in the downstream cosmetics and fragrances markets in the United States. This increase in demand is in sync with notable revenue growth reported across the American fragrances sector, reflecting a resurgence in consumer interest in categories like fragrances and makeup.
The U.S. beauty and personal care market saw substantial growth, with heightened sales in specific categories bolstering the overall industry expansion. According to P&G's Q1 2024 reports, beauty net sales rose significantly, with grooming net sales also showing an increase, although the mix was down. Notably, there was volume growth attributed to new innovations in personal care, while hair care organic sales saw a jump in the high single digits, driven by pricing increases across North and Latin America.
Similarly, LVMH reported a growth in revenue during the first quarter of 2024, with organic revenue also experiencing an upward trend. In grooming, particularly, higher pricing in Europe and America was instrumental in driving organic sales gains. These developments within major corporations mirror broader industry trends, where increased sales in the cosmetics and fragrances sector have substantially boosted demand for essential raw materials like alpha-pinene. This surge in demand has directly contributed to the rising prices of alpha-pinene, illustrating a clear connection between industry sales performance and raw material pricing dynamics. This trend underscores the significant impact of consumer purchasing behaviours and corporate sales strategies on the supply chain dynamics of the beauty and personal care industry.
APAC
In Q1 2024, the pricing environment for Alpha Pinene in the APAC region witnessed a significant price decline. The overall trend for Alpha Pinene prices in the region has been negative, with prices experiencing a decline compared to the same quarter last year.
The market has been influenced by various factors, including reduced demand from the fragrance and flavour sectors, destocking activities during the year-end festivities, and changing consumer preferences. In India, the pricing situation for Alpha Pinene has been particularly noteworthy. In January, prices experienced a substantial surge due to heightened demand from the fragrance and flavour industries during the festive season.
However, in February, prices witnessed a significant decline as the post-festive season led to reduced demand for cosmetics from the personal care market. This decline was further exacerbated by a decrease in manufacturing activity and a shorter duration of festive sales. The market sentiment in India has been moderate, with high supply with the witnessed demand. Overall, the pricing environment for Alpha Pinene in Q1 2024 in the APAC region has been negative, with prices experiencing fluctuations influenced by destocking activities from the market participants.
Europe
During Q1 2024, alpha-pinene prices experienced a notable upward trend, primarily driven by increased demand in the downstream cosmetics and fragrances markets. This surge in demand correlates with significant revenue increases reported within the European fragrances sector. L’Oréal, a key player in the market, reported a robust Q1 in 2024, with sales growth driven by an increase in both volume and value across various geographic regions, including Europe and emerging markets.
The company witnessed strong performance across its divisions, with consumer products seeing a notable rise in sales and professional product sales also making significant jumps. Dermatological beauty products showed growth, albeit more modestly compared to luxe products. Similarly, LVMH reported an organic revenue growth of 3% across all its business units for the same period, with its perfumes and cosmetics sector outperforming other divisions by achieving a 7% jump in organic growth.
These developments in major corporations reflect broader trends in the industry, where increased sales in the cosmetics and fragrances sector have led to a heightened demand for raw materials such as alpha-pinene. Consequently, this increased demand has pushed the prices of alpha-pinene upwards, indicating a direct correlation between industry sales performance and raw material pricing dynamics. The trend underscores the sensitivity of raw material markets to consumer product trends and highlights the interdependencies within the supply chain of the cosmetics and fragrances industry.
For the Quarter Ending December 2023
North America
The fourth quarter of 2023 witnessed substantial impacts on the North American Alpha Pinene market, influencing both pricing and market dynamics. Notably, there was an increased demand for Alpha Pinene from downstream fragrance and flavor industries, resulting in a noticeable uptick in prices. This heightened demand outpaced the available supply, creating a scarcity of the product across the North American market.
Manufacturers are progressively turning their focus to emerging nations within North America, identifying them as promising opportunity hubs for various reasons. Alpha-pinene sees extensive use, providing diverse benefits for skin and oral health while supporting the functions of the immune and respiratory systems.
Among the different product types, alpha-pinene, a fundamental chemical component found in essential oils like cypress, rosemary, juniper berry, frankincense, and helichrysum, holds significant significance in the North American cosmetics industry. This has contributed to the growing demand for alpha-pinene in the North American market. In addition to emphasizing organic growth, companies engaged in alpha pinene are implementing robust go-to-market strategies.
APAC
The fourth quarter of 2023 for Alpha Pinene in the APAC region was characterized by various factors that impacted the market and prices. With the start of the quarter, there was a high demand for Alpha Pinene from the downstream fragrance and flavour industries, leading to an increase in prices. This demand outpaced the supply, resulting in a scarcity of the product. Additionally, the Indian market experienced a surge in prices due to the festive season and the government's efforts to boost the perfumery market. However, the overall demand in the APAC region was strong to moderate towards the end of the quarter, leading to a bearish market sentiment. There were no reported plant shutdowns during this quarter. In India, the price of Alpha Pinene, CFR JNPT, was USD 3074/MT at the end of the quarter. This represents a significant increase compared to the same quarter last year. Overall, the market for Alpha Pinene in the APAC region was influenced by the demand from downstream industries, supply constraints, and crippling product availability.
Europe
The fourth quarter of 2023 observed significant influences on the European Alpha Pinene market, affecting both market dynamics and pricing. Notably, there was a heightened demand for Alpha Pinene from the downstream fragrance and flavour industries, leading to a noticeable increase in prices. The demand surpassed the available supply, resulting in a scarcity of the product across the European market. Manufacturers are increasingly directing their attention towards emerging nations within Europe, recognizing them as burgeoning opportunity hubs for various reasons. In addition to prioritizing organic growth, companies involved in alpha pinene employ robust go-to-market strategies, including partnerships, mergers, divestitures, and collaborations. Among the various product types, alpha-pinene, a primary chemical constituent found in essential oils such as cypress, rosemary, juniper berry, frankincense, and helichrysum, holds significant importance in the European cosmetics industry and high trading fundamentals further supported the price trend. Alpha-pinene is extensively utilized, offering various skin and oral health benefits while supporting immune and respiratory system functions and increase in product consumption further contributed to high price trend. This has contributed to the increasing demand for alpha-pinene in the European market.
For the Quarter Ending September 2023
North America
The price of Alpha Pinene in the North American region displayed a mixed pattern during the third quarter of 2023. During the first half of the quarter, there was a slight increase in demand from the Perfumery industry, coupled with limited supply. Additionally, there was an uptick in export demand during this period, with importing countries showing significant interest. Also, the region faced supply challenges due to the Hurricane season. Additionally, Hurricane Idalia impacted production and supply facilities along the U.S. Gulf Coast, resulting in increased production costs for Alpha Pinene. However, in the latter half of the quarter, various macroeconomic challenges, such as rising inflation and high interest rates, negatively affected consumer confidence. Furthermore, reports from market sources indicated that the U.S. Purchasing Manager's Index remained below 50 in September, signaling a decline in manufacturing and industrial activity. Meanwhile, few manufacturers quoted adequate availability of inventories despite facing supply chain disruptions caused by a hurricane and drought in the Panama Canal. This factor further contributed to a downward trend in domestic market prices.
APAC
Alpha Pinene price in the APAC region showed mixed sentiment throughout the third quarter of 2023, as there was a slight increment in downstream demand from Perfumery industries amidst limited supply. Additionally, it is expensive and labor-intensive to extract alpha-pinene from natural sources. Consequently, growing salaries and the need for sophisticated technology in extraction methods have led to an increase in price. In terms of operating rate, domestic productivity has been moderate while the supply from neighboring U.S. and China (exporting countries) has remained slow; this resulted in the limited availability of Alpha Pinene on the Indian shores. However, during the second half of Q3, there was a decline in the Indian Alpha Pinene prices, owing to the subdued demand from downstream fragrance industries, reflecting declining sales of major players within the perfume sector. During the period, the key market players reported a substantial 9.4% decline in performance owing to the prevailing economic uncertainty, dampening consumer sentiment and consequently leading to reduced purchasing activities.
Europe
Throughout the third quarter of 2023, the price of Alpha Pinene in the European region displayed a mixed performance due to limited demand from fragrance industries downstream. This reduction in demand was a result of declining sales among key players in the perfume sector, primarily because these industries had substantial inventories on hand. Moreover, the availability of alternative ingredients or fragrances and changing consumer preferences contributed to the decreased demand for Alpha-Pinene. Additionally, adequate inventory levels were sustained as new orders declined, which led to a downtrend in domestic market prices. Furthermore, according to data from Germany's Federal Statistics Office, Destatis, there was a 0.3% increase in consumer prices in September, mainly due to a slowdown in the rise of energy prices. Inflation in Germany decreased to 4.5% in September, down from the 6.1% recorded in August. Consequently, the positive performance of Alpha Pinene was dampened, and prices remained at a lower level in the domestic market in the second part of the quarter.
For the Quarter Ending June 2023
North America
At the beginning of the second quarter of 2023, the overall market for Alpha Pinene witnessed a bullish situation in the North American market, with prices rising at the beginning of the quarter. Looking ahead, the US Bureau of Statistics reported that the Consumer Price Index for All Urban Consumers rose by 0.1% in May, which further supported price increases in the first half of the second quarter. Later, prices fell as crude oil prices fell on the back of a sluggish global economy, as the US PMI fell by almost 2%, prompting the Federal Reserve to raise interest rates by almost 5%. However, demand from downstream industries declined, leading producers to curtail production as inventories rose in the region. Market sources claim that the price of Alpha Pinene is difficult to improve after witnessing weak demand in the region and rising inventories. At the same time, buying activity from Europe and the sub-continent had also declined, which had slowed down buying interest.
APAC
Alpha Pinene prices in Asian markets increased during the first part of the second quarter due to the increase in downstream demand from the fragrance and flavors sector, which led to a surge in prices. Participants in the APAC region also described the market sentiment for Alpha Pinene as healthy, as downstream demand from the perfumery industry increased in the face of limited supply. Overall, costs increased, demand was robust, and the market was healthy. However, production in the region ran smoothly, while insufficient stocks of Alpha Pinene created a shortage in the market, pushing up prices. In the meantime, the increase in the Consumer Price Index (CPI) for June 2023 to 180.9 (compared to 179.1 in May 2023) indicated high inflation in the Indian market. In such an inflationary scenario, the local demand for Alpha Pinene deteriorated significantly during the second half of the quarter. Therefore, the market dynamics of Alpha Pinene had become very limited, given the low demand and low production rates. Finally, the price of Alpha Pinene decreased and settled at USD 4069/MT Ex-Mumbai in June 2023.
Europe
The European market for Alpha Pinene was assessed as bearish throughout the second quarter of 2023, with prices declining for most of the quarter. Supply remained optimal as raw material prices also fell, making production in the region steady, but due to sluggish demand from the fragrance and flavors industry, inventories in the region increased. In the meantime, stocks were also sufficient enough to allow traders to maintain prices, with some declines. In addition, European monthly producer prices fell by 0.9% in May, highlighting the challenges faced by the economy in reviving demand and restoring economic growth. In addition, Eurostat, the European Union's statistical office, estimated that annual inflation would be 5.5% in June 2023, down from 6.1% in May. Industry experts attribute this decline to excess inventories, indicating a saturated market. Finally, the market for Alpha Pinene declined in the second quarter of 2023, mostly because of the low demand and high inventories in the European market.
For the Quarter Ending March 2023
North America
Alpha-Pinene experienced a decline in price in the first quarter due to decreased demand from the pharmaceutical industry, which resulted in sufficient availability of the material. This lower demand was likely caused by a decrease in demand for oil-based cosmetics and ointments. The operating rate for Alpha-Pinene was also reduced because of the rising labor and transportation cost, but this did not significantly impact pricing because demand from downstream industries was subpar, and market participants were not engaged in advance procurement. However, it is important to note that the pharmaceutical industry uses alpha-pinene as a starting material for the synthesis of various drugs and as a solvent for drug delivery systems. Overall, the decline in demand for Alpha-Pinene in the pharmaceutical industry was likely due to various factors, such as changes in consumer preferences, advancements in drug delivery technology, and shifts in regulatory policies.
APAC
Alpha Pinene market in India experienced a decline in the first quarter due to reduced demand from consumers. This decline was likely influenced by various factors, such as changes in supply and demand dynamics, rising inventory, and reduced purchasing activity. As a result, the price for Alpha Pinene in India declined by 5% and settled at USD 4017/MT on an Ex-Location basis during March. Similarly, the Alpha Pinene industry in China has also been underperforming in the first quarter, with falling output and consumption. However, the supply of the product has been consistent amidst the strong availability of the material. Overall, the decline in demand for Alpha Pinene in India and China was influenced by various factors, such as changes in consumer preferences, regulatory policies, and shifts in supply and demand dynamics.
Europe
Alpha Pinene market in Europe declined throughout the first quarter due to sufficient supply amidst weak demand from the downstream sector, particularly the pharmaceutical industry. The manufacturers had an adequate supply of raw materials to meet their domestic requirements, but worker protests in Europe over low wages and poor working conditions disrupted the supply. However, the impact on the European market was minimal as demand remained meager. Meantime, the industry's capabilities were sufficient to meet current demands. As a result, the consumption of Alpha pinene was reduced from the pharmaceutical industry amidst bulk inventories, causing prices to dip sharply in the global market.
For the Quarter Ending December 2022
North America
In North America, the Alpha Pinene market has shown mixed sentiments throughout the fourth quarter of 2022. The fluctuation in price came due to the changing demand fundamentals from healthcare industries. There were also several other factors ruling the market dynamics of Alpha Pinene in the US market, such as the changing consumers' attitudes, inflationary pressure, and fluctuating currency value. In the meantime, lower orders made it clear that there was much inventory, which kept prices in the local markets low. Furthermore, due to a lack of buying activity, regional prices were maintaining weak pricing trends. In conclusion, Alpha pinene's price in the US market fluctuated throughout the fourth quarter.
APAC
Prices of Alpha Pinene fluctuated in the fourth quarter of 2022, supported by shifting demand-supply fundamentals. Alpha pinene prices increased gradually in the first half of the fourth quarter due to consistently rising utilization rates in downstream pharmaceutical industries. Alpha Pinene-based specialty aroma ingredients and Camphor are the primary products produced by the plant. Producers were observed reducing profit margins in the second half of Q4 as stocks grew To encourage material sales. India imports most of its Alpha pinene from the United States, China, and Indonesia and is the largest importer of Alpha pinene in the world. Thus, supply crunch and currency fluctuation played a major role in deciding the price structure of Alpha Pinene in India.
Europe
Alpha Pinene fluctuated in Europe during the fourth quarter of 2022, following the Asian market's pattern. The manufacturing Purchasing Manager's Index (PMI) fell to 46.4 in October in Europe, where the economy was struggling in the first half of Q4. However, manufacturers were able to deliver the goods on time due to a consistent supply and abundant material availability. Later, in the second half, despite rising production costs, the price slightly increased as energy costs continued to rise. Meanwhile, Camphor, insecticides, solvents, plasticizers, perfumes, and synthetic pine oil have all been in consistent demand from downstream industries throughout the fourth quarter.
For the Quarter Ending September 2022
North America
In North America, the price of Alpha Pinene fluctuated throughout the Q3 of 2022, supported by erratic buying sentiments and disrupted supply trends on the local market. With the start of the second month of Q3, prices fell because of lowering demand in the US. Furthermore, rising raw material costs and inflationary pressure remained a significant concern for manufacturers. At the same time, the domestic market's demand for Alpha Pinene from the pharma sector kept declining, and the price pressure on production dropped as raw materials also slowed.
Asia Pacific
In India, Alpha Pinene prices fluctuated throughout the third quarter, supported by the changing demand-supply fundamentals. Alpha Pinene is mainly sourced by India's aromatics and fragrance downstream industry. Prices of Alpha Pinene have witnessed a gradual increment in the first half of the third quarter on the back of the consistent rise in utilization rates. As the freight charges have primarily increased due to port congestion across Southeast Asia, Alpha Pinene prices have risen continuously. Therefore, in July, Alpha Pinene's price increased and hovered around INR 395500/MT Ex-Mumbai and INR 333410/MT CFR JNPT, respectively.
Europe
In Europe, the price of Alpha Pinene fluctuated throughout the Q3 of 2022 due to instability in market dynamics. In the first half of Q3, prices were rising. Prices dropped as Q3's second month got underway due to low offtakes from the downstream pharma sector. Additionally, there was a declining market trend for Alpha Pinene. In response, the region observed a significant supply-demand imbalance since the second quarter, besides showcasing no sign of recovery in the short term. Sentiments for supply in the Eurozone were silent as river rhine started drying up due to the heat waves.
For the Quarter Ending June 2022
North America
Alpha Pinene prices increased in North America during the second quarter of 2022 due to its robust offtakes from end-use industries. Alpha Pinene finds its application in the pharmaceutical sector as it is an anti-inflammatory agent and could impact diseases such as arthritis, Crohn's disease, and Multiple Sclerosis. Rosemary and Satureja myrtifolia oil also contain Alpha Pinene. Despite ongoing supply interruption, the demand from the downstream pharmaceutical sector continued to rise. Later, increased freight costs and port congestion also impacted the price increase, which was further supported by the unavailability of raw materials from the Asian countries due to trade disruption.
APAC
In APAC, the Indian market witnessed an increasing price trend for Alpha Pinene throughout the second quarter due to the rising demand from end-use industries. Alpha Pinene's offtakes from the pharma sector were high this quarter because of its anti-inflammatory benefits. Alpha Pinene is also utilized as an essential oil in the fragrance industry. Therefore, amidst the rising viral infections in the Asia-pacific region, demand for alpha-pinene rose due to its primary application. The rise in cost was also attributed to the supply disruption caused earlier due to the Russia-Ukraine war and the lockdown in some provinces of China, hampering the supply of the product and its raw material to the domestic and overseas markets.
Europe
Alpha Pinene prices were observed rising throughout the second quarter of 2022. These price changes were mainly due to the trade disruption arising from the Russia-Ukraine war. Meanwhile, demand for the product from the pharmaceutical industry remained robust throughout the considered quarter. The majority of coniferous tree oil contains Alpha Pinene. Additionally, it can be found in Satureja myrtifolia and rosemary essential oils. Therefore, its demand remains high in the fragrance industry. Meanwhile, the short supply of raw materials from Asian countries led to the unavailability of materials in the regional market, culminating in the soaring price of Alpha Pinene in European countries.
For the Quarter Ending March 2022
North America
In North America, demand for oil-based cosmetics and ointments in the pharmaceutical industry rose in the first quarter leading to the rise in the price of Alpha-Pinene in the regional market. Compared to the last quarter, the market for Alpha-Pinene saw an increment in prices in this quarter, backed by the unavailability of the material. In contrast, the demand from the downstream pharmaceutical industry remained uplifted amidst continuous supply disruption. Later, port congestion and high freight charges also contributed to the escalated price hike. Therefore, with the rise in values of Alpha-Pinene, its prices settled at USD 2540/MT in North America.
Asia Pacific
In India, prices of Alpha Pinene rose in the first quarter owing to the rise in the demand from the pharmaceutical sector. Alpha Pinene demand is high in the pharma sector as it has anti-inflammatory benefits. It is also used as an essential oil in the fragrance industry. Therefore, amidst the rise in viral infections in the Asia-pacific region, especially China, demands for Alpha-Pinene increased due to its application. Alpha Pinene market is expected to rise in China backed by the high demand from consumer’s end. The rise in cost was also attributed to the supply disruption caused earlier due to the Russia-Ukraine war, followed by the lockdown in some provinces of China, hampering the supply of the product to the overseas market. Therefore, the prices for Alpha Pinene in the Asia-Pacific region rose and settled at USD 2740/MT in March.
Europe
In Europe, the market for Alpha Pinene rose throughout the first quarter owing to the supply disruption caused due to the rising conflict with Russia-Ukraine which hampered the availability of the product in the regional market. The demand from the downstream sector appeared strong. However, the manufacturers faced a shortage of raw materials to fulfil their domestic requirements amidst the supply tightness and rising freight on product shipments. Later port congestion and rising transportation cost have added to the rising price of Alpha Pinene in the European market. Thus, the price for Alpha Pinene hovered around USD 2610/MT in March in Germany.
For the quarter ending December 2021
North America
Alpha Pinene market showcased improvement in last quarter as the predicted demand of essential Oil based cosmetics and ointments in pharmaceutical industry was high during winters. Increasing freight cost across major trade routes including Asia resulted into slight increase in raw material prices in Q4 comparing with Q3 2021. Marginal price escalation was observed due to expansion in retail market of end products in the final quarter. Moreover, the demand from other North American downstream pharmaceutical sector remained high, while the supply was adequate throughout the quarter.
Asia
High demand of Alpha Pinene led to an increase in prices in the final quarter of 2021. Prices of Alpha Pinene in India rose from 2873.33 USD/MT to 3032.33 USD per MT by the end of December. Expansion of pharmaceutical market in Asia during winters led significant price escalation in final quarter of 2021. Furthermore, in Asian countries, the demand of Alpha Pinene was on higher side & supply of Alpha Pinene was moderate because of pre predicted demand & adequate supply of end product. However, energy crisis in China and rising production cost remained a major factor behind these price revisions.
Europe
The overall condition of European market was not good. Switzerland based major player highlighted that labour shortages caused low production and less imports of raw materials from China in 2021. Increased demand of downstream industries like pharmaceutical sector and cosmetics during winter with inadequate supply of raw material resulted in demand-supply gap. Consequently, prices of Alpha Pinene were on higher side in last quarter of 2021, while traders heard battling with low margins. In addition, soaring energy cost in the regional market also remained a major factor behind diminishing margin.
For the Quarter Ending September 2021
North America
The overall market outlook of Alpha Pinene showed mixed sentiments during the third quarter of 2021. However, there was a spike in the regional pricing for Alpha Pinene after the wildfire impacted power imports in the US and impacted operations. High freight cost followed by the delay in shipping of raw materials from the Asian countries led to the increase in prices of Alpha Pinene during the end of September. Additionally, demand remained stable and firm from the downstream pharmaceutical industry throughout the quarter.
Asia
In Q3 2021, the market of Alpha Pinene in Asia experienced an upward trajectory due to the surge in demand for solvents. The prices of Alpha Pinene have witnessed a gradual increment during the third quarter on the back of a consistent rise in utilization rates of downstream fragrance industries. The shortage of usable containers amid high demand in China led to the spike in pricing of Alpha Pinene, while logistical issues also amplified the overall situation. It was noticed that the skyrocketing freight cost affected the prices of various commodities in the country. In India, the ex-Mumbai prices rose from USD 2979/MT to USD 3112/MT within the third quarter.
Europe
European market experienced an increase in the prices of Alpha Pinene during the third quarter of 2021. A steep rise in the shipping charges of upstream feedstock from Asia resulted in the price uptrend of Alpha Pinene in Europe. A spike in demand was observed from the downstream industries including fragrance, pharmaceutical, and others across the region. Traders highlighted that lack of labour shortages caused extended lead times at several European ports.
