For the Quarter Ending September 2024
North America
The Benzoyl Chloride pricing landscape in North America during Q3 2024 has been defined by a sustained downward trend, with prices declining significantly compared to the same quarter last year. This decrease can be linked to various factors shaping market dynamics. Notably, fluctuations in production costs, variations in demand levels, and challenges within the supply chain have all played critical roles in driving prices lower. The weak demand from essential end-use sectors, particularly the agrochemical industry, combined with limited cost support from feedstock benzene—a crucial component for Benzoyl Chloride production—has exerted considerable downward pressure on prices.
Focusing specifically on the USA, which experienced the most substantial price changes, the quarter marked a notable decline from the previous quarter in 2024. Furthermore, both halves of the quarter exhibited a similar downward trend in prices, reinforcing the pervasive bearish sentiment in the market.
Overall, the pricing environment in Q3 2024 has been characterized by a consistent downward trajectory in the Benzoyl Chloride market, reflecting the numerous challenges faced throughout this period.
APAC
In Q3 2024, the APAC region witnessed a significant decline in Benzoyl Chloride prices, with China experiencing the most substantial price changes. The market was influenced by various factors such as oversupply, weakened demand, adverse weather conditions, and decreased global trade orders. The overall trend was characterized by a bearish sentiment, as prices consistently decreased throughout the quarter. The market momentum was weakening, and the demand side was providing enough support for the market. Seasonal variations, particularly in the agrochemical sector, played a role in the subdued demand, further impacting prices. Additionally, disruptions in the supply chain and logistical challenges added to the downward pressure on Benzoyl Chloride prices. China, specifically, saw a notable -16% decrease in prices from the previous quarter and 5% decrease from the same quarter last year, with a further significant drop between the first and second half of the quarter. The quarter-ending price stood at USD 1030/MT FOB Shanghai, reflecting the challenging pricing environment prevalent in the region.
Europe
In Q3 2024, the European Benzoyl Chloride market experienced a significant price decline, driven by several factors affecting the market landscape. One of the primary influences was the ongoing drop in feedstock prices, particularly Benzoyl Chloride, a crucial raw material in its production. This downward trend in feedstock costs, combined with global geopolitical tensions, high local inventories, and diminished demand from key downstream sectors, collectively applied substantial downward pressure on prices. The oversupply of feedstock further aggravated the situation, directly impacting the production costs of Benzoyl Chloride across the region. In the Netherlands, which saw the most pronounced price changes, the overall trend in Benzoyl Chloride pricing reflected a persistent negative sentiment. The market experienced a significant percentage decline compared to the same quarter in 2023, and the downward momentum continued with a further decrease from the previous quarter in 2024, highlighting a consistent bearish trajectory. Comparing the first and second halves of the quarter revealed a marked decrease in prices, underscoring the ongoing challenges within the pricing environment throughout the region.
For the Quarter Ending June 2024
North America
In Q2 2024, the North American benzoyl chloride market experienced a consistent decline in prices, driven by several significant factors. The quarter began with an oversupply situation exacerbated. This surge in supply, combined with weakened cost support from feedstock benzene due to declining aromatic naphtha prices, continually exerted downward pressure on benzoyl chloride prices. Furthermore, the North American market was also affected by a severe shortage of containers and vessel space, which kept freight rates high despite the overall weak demand.
Focusing on the USA, the price changes were most pronounced, driven by low import prices from exporting regions and persistent adverse weather conditions that suppressed domestic demand. Tornadoes, thunderstorms, and heavy rains led to a significant reduction in agrochemical buying enthusiasm, further dampening market sentiment. This seasonality and adverse weather created a bearish environment, with the price for benzoyl chloride falling steadily throughout the quarter.
The overall market trend for Q2 2024 reflected a negative pricing environment, with a notable 6% decrease in prices from the first to the second half of the quarter. This decline underscores the substantial influence of supply-demand imbalances and external disruptions on the benzoyl chloride market.
APAC
In Q2 2024, the pricing environment for Benzoyl Chloride in the APAC region has been predominantly bearish, driven by multiple significant factors. The quarter witnessed a notable decline in market prices, primarily due to an oversupply situation and weakening cost support from feedstock benzene, which saw reduced demand from end-use manufacturing units. This was further exacerbated by a continuous decline in naphtha prices, a key raw material in the Asian market, leading to lower production costs and enabling companies to reduce their prices. Additionally, adverse weather conditions and subdued global demand, especially from the downstream agrochemical and pharmaceutical sectors, have further suppressed market sentiment.
China, in particular, has experienced the most pronounced price changes. The market saw a continuous decline, influenced by high inventory levels and supply outpacing demand. Seasonal weather disruptions contributed to low procurement activities, while the persistent drop in aromatic naphtha prices and weak demand for benzene exerted downward pressure on benzoyl chloride prices. The overall trend reflected a negative price environment, with the second half of the quarter showing an 8% decrease compared to the first half. Additionally, the price decline from the previous quarter in 2024 was recorded at 2%.
Moreover, plant shutdowns, such as those at Valtris Specialty Chemicals in Belgium and Danyang Wanlong Chemical Co., Ltd. in China, contributed to supply disruptions but failed to stabilize prices due to the overwhelming supply surplus. The quarter ended with the price of Benzoyl Chloride 98% FOB Shanghai in China recorded at USD 1270/MT, underscoring a consistent decline in market prices. Overall, the pricing environment has been negative, reflecting weakened demand and oversupply in the market.
Europe
In Q2 2024, the pricing environment for Benzoyl Chloride in the European region has experienced a notable decline, driven by a confluence of factors that have exerted downward pressure on market prices. The quarter has been characterized by an oversupply of Benzoyl Chloride. The resurgence in production capacity led to a significant increase in supply, which outpaced demand and caused prices to fall. Additionally, lower feedstock costs, particularly benzene, due to decreasing aromatic naphtha prices, further contributed to the downward trend. Weak demand from downstream sectors, especially agrochemicals, exacerbated by unfavorable weather conditions across Europe, led to a reduced need for agricultural inputs, including Benzoyl Chloride.
Germany witnessed the most pronounced price changes. The overall trend in the German market has been bearish, with prices showing a sharp decline throughout the quarter. Seasonal factors, such as persistent wet and waterlogged fields, disrupted agricultural activities, significantly impacting demand. This seasonal disruption, coupled with an oversupply situation, resulted in substantial price reductions. The price of Benzoyl Chloride in Germany saw a significant decrease from the first half to the second half of the quarter.
The pricing environment for Benzoyl Chloride during Q2 2024 has been predominantly negative, with market dynamics heavily favoring a decline. Reduced demand, oversupply, and lower production costs have collectively driven prices down, reflecting a challenging quarter for producers.
For the Quarter Ending March 2024
North America
In the North American market, Benzoyl Chloride witnessed a bearish due to a weak Benzene market, its key feedstock and sluggish demand from downstream industries including paints and coatings. Lower demand for Benzene, particularly in the US, fuelled the price decline. Reduced construction activity and high feedstock costs for Benzene producers dampened production incentives, leading to ample domestic and international inventories.
The US market, a major Benzoyl Chloride producer, mirrored this trend. While prices remained stable throughout Q1, they were down 8% year-over-year and 2% compared to the previous quarter in 2024.
Notably, prices dropped significantly from the first to the second half, indicating a worsening situation. The quarter ended with US Benzoyl Chloride priced at USD 1530/MT FOB USGC, reflecting the persistent downward pressure.
APAC
The pricing environment for Benzoyl Chloride in the APAC region during Q1 2024 has been largely positive, with prices showing an overall upward trend. Several factors have influenced market prices in this quarter. Firstly, there has been increased demand from downstream industries such as agrochemicals, pharmaceuticals, and plastics. This heightened demand has put upward pressure on prices. Additionally, there has been a tight supply of Benzoyl Chloride, leading to a decrease in inventory levels and further driving prices up.
In China specifically, the price of Benzoyl Chloride has seen significant changes. The market has been bullish, with supply levels remaining low and demand remaining high. The surge in demand from the agrochemical sector, specifically for water-soluble fertilizers, has contributed to the price increase. The recent ban on fertilizer exports from China until April 2024 has further intensified the demand for Benzoyl Chloride in the domestic market.
Overall, the pricing trends for Benzoyl Chloride in the APAC region during Q1 2024 have been positive, with prices experiencing an upward trajectory. The market has been influenced by strong demand from downstream industries, tight supply levels, and export restrictions in China. The quarter-ending price for Benzoyl Chloride in China was recorded at USD 1370/MT FOB- Shanghai.
Europe
In the Q1 2024, European Benzoyl Chloride producers saw a bearish market due to rising Benzene prices, their key feedstock. While demand from paints and coatings and pharmaceutical sectors remained steady, concerns over supply constraints and longer transit times fuelled price hikes. Geopolitical tensions and trade disruptions in the Red Sea caused delays and higher freight costs, impacting Benzene supply.
The Netherlands, a major European Benzene market, exemplifies this trend. Compared to the same quarter last year, prices surged sharply. They also rose compared to the previous quarter in 2024, and a notable jump occurred within Q1 itself. The quarter ended with Benzoyl Chloride priced at USD 1670/MT FOB Rotterdam, reflecting a positive pricing environment for European Benzene. However, for Benzoyl Chloride producers, this translates to potentially tighter margins. Rising Benzene costs could force them to adjust pricing strategies in the coming months, impacting their profitability despite a seemingly stable demand outlook.
For the Quarter Ending December 2023
North America
In Q4FY23, benzoyl chloride prices in the USA exhibited a mixed trend, remaining stable in October with moderate demand and steady feedstock benzene. The stability was influenced by factors such as a moderately positive demand outlook. November and December witnessed a drop in prices in the USA market, attributed to low feedstock benzene and weakened demand.
The Israel-Palestine conflict's initial impact on oil prices reversed, with limited effects on USA economies. December saw further price declines due to sluggish demand despite excess benzene supply. Despite anticipated low demand and concerns about geopolitical tensions rerouting oil tankers, some remain optimistic about improvements in 2024, suggesting a potential positive shift in the macroeconomic landscape.
The overall outlook, however, remains negative, reflecting the intricate interplay of economic factors, geopolitical events, and market dynamics shaping benzoyl chloride prices in the USA market. Further, December marked a decline in benzoyl chloride prices as manufacturers strategically destocked, aiming to make room for new inventory. As of December, Benzoyl chloride prices in USA were assessed at USD 1002per MT, FOB Louisiana
APAC
In Q4FY23, benzoyl chloride prices in the APAC region displayed a varied trend, initially declining in October due to weak support from crude oil and lower feedstock benzene prices, subsequently rebounding. The October decline was influenced by oversupply in the market, exacerbated by China prioritizing its domestic fertilizer market, restricting exports and causing a drop in prices. Major chemical companies like Dow, Eastman Chemical, and Huntsman reported decreased sales and earnings in Q3, citing lower volumes and reduced prices, particularly in construction, agrochemicals, coatings, adhesives, and industrial markets. The domestic supply of benzoyl chloride remained stable, meeting optimal production rates, yet with lower demand from downstream agrochemicals. November and December witnessed a price increase as construction in coke companies decreased, and despite lackluster domestic demand, importing countries showed increased procurement, impacting prices. The beauty and personal care market growth in China, coupled with consistent investments in the aromatics sector and collaborations with major players like ExxonMobil, contributed to heightened demand. The supply-demand imbalance led to reduced inventory levels, causing upward pressure on prices, despite a decrease in feedstock benzene costs. Overall, market dynamics reflected a combination of global and domestic factors influencing benzoyl chloride prices in the ASAP region. As of December, Benzoyl chloride prices in China were assessed at USD 1240/MT FOB Qingdao.
Europe
In Q4FY23, benzoyl chloride prices in Europe experienced a mixed trend, initially rising in October due to elevated feedstock benzene and a moderately positive demand outlook. The persistent inflation issue in Europe saw a decline, raising hopes for consumer relief and potential economic stability. Domestic production showed improvement, driven by advancements in manufacturing, but annual figures remained lower. November witnessed a drop in prices in the Netherlands market, attributed to low feedstock benzene and weakened demand, reflecting the declining manufacturing activity in the Eurozone. The Israel-Palestine conflict's initial impact on oil prices reversed, with limited effects on European economies. December saw further price declines due to sluggish demand despite excess benzene supply. Despite anticipated low demand and concerns about geopolitical tensions rerouting oil tankers, some remain optimistic about improvements in 2024, suggesting a potential positive shift in the macroeconomic landscape. The overall outlook, however, remains negative, reflecting the intricate interplay of economic factors, geopolitical events, and market dynamics shaping benzoyl chloride prices in the European market. As of December, Benzoyl chloride prices in Netherlands were assessed at USD 875 per MT, FOB Rotterdam.
For the Quarter Ending September 2023
North America
Benzoyl chloride prices in the North American region fluctuated during Q3 2023, following a similar trend to prices in the European region. Prices initially declined due to weak demand and moderate supply, but they stabilized and even increased slightly in the later part of the quarter due to increased demand and rising feedstock prices. The supply of raw materials for benzoyl chloride production, such as benzene and benzaldehyde, was moderate during Q3 2023. This helped to keep prices in check. Demand for benzoyl chloride from downstream industries, such as fertilizers and pharmaceuticals, began to increase in the later part of Q3 2023. Benzoyl Chloride prices in the US increased by an average of 2% during September due to rising feedstock prices and increased demand from downstream industries.
Asia Pacific
Benzoyl chloride prices in the Asia Pacific region followed a similar trend to prices in the European and North American regions during Q3 2023. Prices initially declined due to weak demand and moderate supply, but they stabilized and even increased slightly in the later part of the quarter due to increased demand and rising feedstock prices. Demand for benzoyl chloride from downstream industries, such as fertilizers and pharmaceuticals, began to increase in the later part of Q3 2023. This was due to a number of factors, including the start of the agricultural season and increased production of pharmaceutical products. The prices of feedstocks for benzoyl chloride production, such as benzene and carbonyl chloride, began to rise in the later part of Q3 2023. This increased the cost of production of benzoyl chloride, which put upward pressure on prices. Thus, after the conclusion of Q3 2023, Benzoyl Chloride prices in China were assessed at USD 1203 per MT.
Europe
Benzoyl chloride prices in the European region fluctuated during Q3 2023, initially showing a downward trend before stabilizing and then increasing slightly in the later part of the quarter. Demand for benzoyl chloride from key end-use industries such as agriculture, dyes, perfumes, pharmaceuticals, and resins was weak during Q3 2023. This was due to a combination of factors, including the ongoing war in Ukraine, high inflation, and slowing economic growth. The supply of raw materials for benzoyl chloride production, such as benzene and benzaldehyde, was moderate during Q3 2023. This helped to keep prices in check. There was a surplus of benzoyl chloride inventory in the European market during Q3 2023. This was due to the combination of weak demand and moderate supply. However, prices began to stabilize in the later part of Q3 2023 and even increased slightly. Benzoyl Chloride prices in Europe increased by an average of 3% during September due to rising feedstock prices and increased demand from downstream industries.
For the Quarter Ending June 2023
North America
The prices in the American region declined throughout the entire second quarter in the presence of weak demand registered from the downstream agricultural, pharmaceuticals, dye, paints, and resins industry and rising inventories noted by the market participants in the sight of rising product consumption. Further, the crude oil prices declined from the first week of April up until June, thereby reducing the cost pressure and pulling down the cost of production of benzoyl chloride and bringing it into the market space. Further, the market demand for the downstream product Benzoyl Peroxide is also decreasing as its use in the polymer industry decreases, which has plummeted prices and given the market an unhealthy outlook. Additionally, the freight charges plummeted in the American market, slightly pulling down the cost pressure. The inventories of Benzoyl Chloride increased with a decline in procurement from the pharmaceutical and dyestuff industries in the region, affecting the market sentiments. Thus, excess stockpiling of products caused the traders to conclude with a decrease in prices. On top of that, the market value of Benzoyl Chloride fluctuates with variations in the global petrochemicals sector.
APAC
In the Asia Pacific region, the prices of benzoyl chloride showed an overall bearish trend, specifically in Indian markets, where it showed a strict decline. However, it revived shortly during the second week of May but declined thereafter up until the later weeks of June owing to the weak demand incoming from end-use pharmaceutical and fertilizer industries. Moreover, the PMI in China unexpectedly fell to 49.5 from 50, which further justified the declining trend of prices denoting the contracting manufacturing activities in the Chinese market. The Benzoyl Chloride prices have increased during the second week of May 2023 on the back of limited inventory available in the market and rising prices of feedstock Benzaldehyde. However, later during the second half, the prices again came back on their original bearish trend in the presence of weak demand from the downstream Benzoyl Peroxide and the downstream feedstock carbonyl chloride or also known as phosphene which is used in the manufacture of benzoyl chloride. Further inventory levels were sufficient as production rates have been stable with fewer inquiries registered from the downstream Pharmaceuticals and agrochemicals industries. Meanwhile, the prices of Benzoyl chloride had taken a constant decline in India as freight charges plummeted in the Indian market, pulling down slight cost pressure. The prices on 23 June 2023 were assessed at USD 1547.32/MT CFR JNPT.
Europe
In the European market, the prices of benzoyl chloride were strictly declining throughout the entire second quarter of 2023 on the back of weak demand registered from the end-use agriculture, dyes, perfumes, pharmaceuticals, and resin industries. Further the market supply of raw material “pure Benzene” in the European markets was moderate. Subsequently, the Benzoyl Chloride prices decreased during the second week of May 2023 on the back of surplus inventory available in the market and deflating prices of feedstock Benzaldehyde as pessimistic demand was observed from the downstream pharmaceutical industry. Further, in the presence of moderate stable inventories reported by traders and rising product consumption, the prices of Benzoyl chloride plummeted in the European markets. On top of that, skyrocketing interest rates due to inflation culminated in the price decline. Eventually, the underwhelming performance of the construction industry and the cheaper imports reaching the European ports from other neighboring countries such as Italy, Germany, Belgium, and other Asian countries further resulted in the price decline.
For the Quarter Ending March 2023
North America
Benzoyl Chloride prices remained in a stable upward direction during Q1,2023. The logistics Industry is up in the USA market, with more sales being generated by the supply chain industry along with a moderate rise in the value chain industry and steady inventories. Slight spikes in consumer demand triggered a bullwhip effect, resulting in somewhat increasing orders up the supply chain to prevent stockouts. However, the supply chain could not respond promptly, and it led to a slight shortage of products in the regional market. The stock of raw material Carbonyl Chloride was also somewhat steady in the North American region, as per quoted by the traders in the region.
Asia
The market value of Benzoyl Chloride was depleted in the Asian market during the first quarter of 2023. The prices of Benzoyl Chloride were de-escalated in the Indian market with plummeting demand from downstream pharmaceuticals and dyestuff industries with a lowering of marginal demand. An inward shift of procurement of Benzoyl Chloride for the manufacturing of dyestuff-based products impacted the prices in the regional market. With an abundance of products in the regional market and a moderate supply chain, the market is satisfactory with its logistical issues. The Chinese raw material resources for Benzoyl Chloride are exported, and as a result, the market's supply has grown further, pushing down prices.
Europe
The market value of Benzoyl Chloride remained in a stable upward direction in the European market during the first quarter of 2023. The market supply of feedstock Benzene was moderate, and the downstream market saw a rise in procurement in the region. The supply chain situation in the German market was moderate enough to meet the downstream procurement from the fertilizer and pharmaceuticals market. The price rise of Benzoyl Chloride is due to a rise in feedstock Carbonyl Chloride values in the Indian market and an elevation in demand from downstream fertilizers and pharmaceuticals values. The stable demand for Benzoyl Chloride is placing slight pressure on workers across the manufacturing and logistics supply chain, including those working on production lines and truck drivers.
For the Quarter Ending December 2022
North America
During the last quarter of 2022, the cost of Benzoyl Chloride decreased, affecting the trade of Specialty Chemicals within the North American market. Declining demand from downstream dyes, perfumes, and the pharmaceutical industry affected the market sentiments. Decreasing prices of upstream feedstock Benzene in the regional market pulled the prices of Benzoyl Chloride prices in a downward direction. Falling freight charges affected the trade from and within the region. Plummeting purchase of the product from the downstream sector and reduction in export from Germany, Mexico, and India affected the market value of Benzoyl Chloride in the USA. This also contributed to a rise in inventories of the product in the domestic market.
Asia
The prices of Benzoyl Chloride plummeted in the Asian market during the fourth quarter of 2022, with a production rate decreasing, thus relieving the cost pressure from the product's prices. The supply chain of the product in the Indian market region was ample, with lower consumption from the downstream sector affecting the market sentiments. The demand from the downstream fertilizer market has reduced, resulting in limited demand pressure on Benzoyl Chloride. The consumption from the downstream market was observed to be decreasing, affecting the stock in the regional market with rising inventories with the traders and the suppliers.
Europe
In Q4,2022 the market value of Benzoyl Chloride fluctuated throughout in a downward see-saw direction. The demand for Benzoyl Chloride plunged from the importing countries like France, Netherlands, Poland, and the USA affecting the trade in Germany. The interstate supply of the product fell as well, with consumption of the product decreasing within the region. Supply chains were disrupted due to centralized inventory, patchwork logistics, and huge E-commerce Growth. Prices were also falling as feedstock fluctuated (Benzene and Anhydrous Aluminium Chloride) in the regional market, with falling consumption levels and lowering market sentiments. The procurement from the pharmaceutical sector affects the prices of Benzoyl Chloride.
For the Quarter Ending September 2022
North America
During the third quarter of 2022, the prices of Benzoyl Chloride fell in the North American market affecting the market sentiments. The untangling supply chain helped drive inflation and kept products moving in the region. Meanwhile, demand from the downstream pharmaceuticals and fertilizers industry fell, relieving demand pressure from the price of Benzoyl Chloride. The inventories in the area with the traders increased, causing an abundance of the product, which affected the market sentiments. Freight charges were also falling during the period due to demand drop and increasing container and vessel availability.
Asia
Benzoyl Chloride prices fell in the Asian market during Q3 2022 as demand from downstream dyes, perfumes, and the pharmaceutical industry fell, affecting the market sentiments in the Asian region. The demand for Benzoyl Chloride from South Korea, Russia, India, and the UAE declined, affecting the market sentiments in the Asian region. The decline in upstream feedstock Benzene pressured the prices of Benzoyl Chloride in a downward direction in the market. The inventories were observed to rise with the traders and the suppliers affecting the manufacturing sentiments. The supply of the product was more than the available demand in the regional market. The prices hovered at INR 185000/ton Benzoyl Chloride Ex-Mumbai during August.
Europe
The Benzoyl Chloride prices were rising in Europe during Q3 of 2022. The ongoing conflict in Europe, along with the tightening of oil markets and fluctuating demand for transport fuels post-pandemic, has led to higher freight prices in the region. The supply chain in the European region has been restructured as they moved away from Russian gas due to the ongoing warfare between Russia and Ukraine. Soaring Natural Gas prices have hampered the demand of the industrial sector, affecting the operating rates. The power generation dropped in Europe, impacting the chemical plant's production and causing a shortage of Benzoyl Chloride in Germany. The suppliers noted that inventories were falling with the stable demand from downstream industries.
For the Quarter Ending June 2022
North America
The North American market saw a fall in the prices of Benzoyl Chloride during the second quarter of 2022. Decreasing demand for the product from the downstream dyestuffs, pharmaceuticals, and perfumes supported the downtrend of the product in the region . Varying freight charges due to the Russian invasion of Ukraine confused the traders regarding the prices. Due to weak downstream market sentiments and were stockpiled with the suppliers. There was ample availability of the product which were not being consumed. The inquiries of the product shortened as per told by the traders.
Asia
The prices of Benzoyl Chloride fell in the Asian market during the second quarter of 2022, with a quarterly declination of 2.5% in India as per Chem Analyst pricing team data. Decreasing demand from downstream pharmaceuticals, dyes, perfumes, and resins supported the downstream trend in the regional market. Falling prices of upstream feedstock Carbonyl Chloride and Anhydrous Ammonium Chloride relieved the pressure from the product's merits. The freight charges were also observed to decrease during the quarter, pushing the prices down. This led to rising inventory levels, and transportation costs were also affected due to the pandemic.
Europe
The prices of Benzoyl Chloride surged in the European market during the second quarter of 2022. Escalation in the prices of Carbonyl Chloride and Anhydrous Aluminium Chloride put cost pressure on the product's merits . Supply chain values disruption during the quarter due to the ongoing war between Russia and Ukraine caused a shortage of shipments. This scarcity caused a lack of products as trade was impacted. With the surge in demand from downstream pharmaceutical and dyestuff markets, the drought caused chaos, thus surging prices in the European Union's regional market. The inventories were observed to shorten, and fewer products were stockpiled with the traders and the suppliers.
For the Quarter Ending March 2022
North America
North America saw an escalation in the price of Benzoyl Chloride in the first quarter of 2022 due to the change in prices of upstream toluene and benzo trichloride as a result of the Russia-Ukraine conflict. In USA, the prices were assessed at USD 3450/ton by the end of the month of March 2022. A marginal revival in demand for feedstock and robust market in the downstream sector has led to a preferential uptick in its prices. An increase in the buyer's interest from overseas suppliers, especially from the Asian countries, is the reason for an upward trend in the prices of Benzoyl Chloride. Depleting supply of the raw materials, low inventories, and increasing freight charges affected the Benzoyl Chloride prices and production rates of the enterprises.
Asia Pacific
In Q1 2022, the price of Benzoyl Chloride was increasing in India and China, where India saw an increase of 1.8% in Q1 2022 as compared to the last quarter of 2021. Prices were hovering around USD 3061/ton and USD 3276/ton in the month of March 2022 in India. The bullish rally in the oil market had stalled the trading atmosphere in the Chinese Benzene market. The demand for Benzoyl Peroxide in the market was increasing with surge in its usage in the Polymer industry, which gave a boost to the prices and made the market look healthy as Benzoyl Chloride demand in India remained relatively firm.
Europe
During the first quarter of 2022, the price of Benzoyl Chloride went up in Germany due to buoyancy in demand from the downstream sector like plastic and paint additives, owing to the continuous rise in the feedstock prices along with supply tightness and rising import expenses. Belgium and Germany being the major exporter in Europe, saw a surge in prices which went as high up to USD 2450/ton in Germany by the end of the first quarter of 2022. The reduction in the availability of raw materials amid stable offtakes from the domestic market led to a significant surge in the price of Benzoyl Chloride in the region.
For the Quarter Ending December 2021
North America
In North America, Benzoyl Chloride prices retained stability during the fourth quarter of 2021. Benzoyl market witnessed sturdy demand from the downstream pharmaceuticals, dyes, personal care, and other sectors. Meanwhile, the surge in the feedstocks thionyl chloride values also influenced the prices of Benzoyl Chloride in this timeframe. In addition, high freight charges from Asian and European countries further fumed the prices of Benzoyl Chloride in the US market. Moreover, the local traders had kept the quotations high to safeguard their personal margins. Thus, Benzoyl chloride prices witnessed an upward trend throughout the Q4 in the US.
Asia
During the fourth Quarter of 2021, Asian market registered a steep climb in the prices of Benzoyl Chloride. In India, a sharp demand for Benzoyl Chloride from the domestic downstream manufacturers was witnessed that kept the pricing trend high throughout this quarter. Moreover, steep rise in the raw materials cost in the pharma industry affected the overall margins of downstream products manufacturers. Furthermore, spiraling freight charges due to container shortage also sent ripples to the values of Benzoyl Chloride in Indian market. Therefore, Benzoyl Chloride prices-maintained firmness during the quarter in the Asian market. In India, Benzoyl Chloride Ex Mumbai prices escalated to USD 2627.38 per MT witnessing a significant increment in the timeframe of October to December.
Europe
In Europe, market sentiments of Benzoyl Chloride continued to be firm throughout the quarter, supported by ample offtakes from the downstream pharma and personal care sector. Moreover, demand from oversees markets continued to be buoyant in this duration. During quarter beginning, major European economies pushed up their industrial activities thus, a sharp resurgence in the demand and consumption was observed for Benzoyl Chloride across the region. However, in the mid-quarter, due to the energy crisis in Europe, several production plants curtailed their production which directly influence the prices for Benzoyl Chloride.
For the Quarter Ending September 2021
North America
The prices of Benzoyl Chloride escalated at a good pace in the North American region during the third quarter of 2021. Rapid economic growth in North America was highly supported by the recovering dynamics in downstream industries such as pharmaceutical, cosmetic and personal care, etc. in Q3 2021. The delay in the shipping of upstream feedstock from the Asian countries resulted in the increased prices of Benzoyl Chloride across the region in Q3. A steep rise in the demand for Benzoyl Chloride was observed by the downstream Peroxide and its derivatives sector in Q3 2021.
Asia
The prices of Benzoyl Chloride witnessed a significant rise during the third quarter of 2021. The supply of specialty chemicals was hindered due to the shortage of usable containers and high freight costs in China. In India, the increment in the Benzoyl Chloride prices was backed by the firm demand from the domestic market in the midst of rising import expenses in Q3 2021. The ex-Mumbai prices escalated from USD 3041/MT to USD 3794/MT from July to September. Critical shortage of shipping containers compelled to opt for air cargoes, which reduced the profit margins of traders. However, the demand from the downstream pharma, dyes, and chemical intermediate manufacturers remained firm and stable throughout the quarter.
Europe
The overall market outlook of Benzoyl Chloride in the European region observed an uptrend due to the surging demand from the downstream pharmaceutical, dye, and chemical manufacturing industries in Q3 2021. The recovery of the major European economies in Q2 led to increased demand for Benzoyl Chloride across the region throughout the quarter. Additionally, being one of the richest markets in Europe, the personal care market grew significantly during this quarter which propped up the Benzoyl Chloride demand.
For the Quarter Ending June 2021
North America
Benzoyl Chloride prices-maintained firmness during this quarter across North America region. The demand for the product from the downstream pharma, perfume and other derivatives segments remained sturdy. In the meantime, rapid economic growth also increased the consumption from the personal care products of the country, supported by improved global demand. Therefore, global offtakes also increased for USA during this quarter, which also supported the Benzoyl Chloride market of the country.
Asia
Asian market showcased mixed sentiments for Benzoyl Chloride this quarter. In China, demand for Benzoyl Chloride remained firm during this timeframe, as the sharp rebound in economic activities bolstered the demand from the domestic market, while ensuring high production activities. Therefore, prices-maintained firmness throughout the quarter in China, supported by ample offtakes from the personal care and pharma segment. Meanwhile in India, prices dropped during the month of May, due to crippled demand under pandemic mayhem in the country. These prices rebounded in June under expectations of market recovery, which eventually hovered around USD 2933.6/MT.
Europe
Market sentiments of Benzoyl Chloride remained firm in Europe during this quarter, supported by ample offtakes from the regional buyers. Major European economies recovered from the pandemic devastation and pushed up their industrial activities. Therefore, a steep recovery in demand and consumption was observed for Benzoyl Chloride during Q2 2021 across the region. In addition, European personal care market is one of the richest markets of the Europe, and significant quantity of Benzoyl Chloride was consumed by this segment of the region during this quarter as well.
For the Quarter Ending March 2021
North America
Demand for Benzoyl Chloride remained modest to firm in the North American market during Q1-2021, as the demand fluctuated with segment over segment during this quarter. Pharmaceutical segment of overall North America remained firm and thus the demand for Benzoyl Chloride for downstream Peroxide derivatives manifested recovery. However, the demand for Benzoyl Chloride from dye and surfactant segment remained lower than expected, which reduced the overall imports of USA during this timeframe across the region.
Asia
Despite of sufficient market recovery post COVID by several countries, Asian market encountered lower demand from downstream segments for Benzoyl Chloride However, Exports remained ideally stable throughout the quarter, regardless of trade route congestions and halted trading activities in some international ports. In the Indian market, demand from domestic surfactant and pharmaceutical segments remained firm, however the prices remained stable throughout this timeframe.
Europe
European market encountered low demand for Benzoyl Chloride from domestic downstream segments. Second wave of COVID 19 and movement restrictions across some areas reduced the demand from dye and fragrance segments. However, pharmaceutical sector remained stable and production by major players remained consistent. In addition, major players of Sweden, revealed that they evoked optimum production rate for Benzoyl Chloride under stable demand from international market.
For the Quarter Ending December 2020
North America
With the uniform growth in prices of the Thionyl Chloride, Benzoyl Chloride prices in the US took an uptrend later in the quarter. Prices revived towards the end of the quarter due to increased utilization in agrochemicals, pharmaceuticals, etc. With the news of vaccine roll out towards the end of the quarter, there seemed increasing pressure on companies to increase capacity utilizations to maintain profit margins. Benzoyl Chloride is widely used reagent in production of various pharma and dye intermediates. Reopening of several consuming sectors boosted the price curve towards the end of the quarter.
Asia
Demand for Benzoyl Chloride in the Asian markets prevailed as various countries like China, Japan and India were heard ramping up their plant capacities to make up for the losses incurred in H1 2020. Steady hike in the prices of feedstock, Thionyl Chloride backed by low product availability across Southeast Asia provided an upward push to the prices of several Acid Chlorides during the quarter. In some southeast Asian countries, such as Malaysia and the Philippines, re-imposition of national lockdowns further pressured the possible signs of demand recovery and added to the inventory pressure.
Europe
The revival of Europe from the pandemic-induced slowdown and increased exports of organic & inorganic chemicals led to increase in production rates, pushing forward the prices of Benzoyl Chloride in the regional market. In early December, the availability of the European Benzoyl Chloride increased as feedstock problems in the upstream market had mostly been fixed because of ease in lockdown restrictions along with relaxed supply chains. However, the plant utilization rates gradually improved since pharmaceutical industry, the key end user of Benzoyl Chloride under prevailed from the consistent upward push in domestic demand.
