For the Quarter Ending June 2024
North America
The second quarter of 2024 has been characterized by varied prices in the North America region, influenced by several pivotal factors. One key factor is the increased offer from China, which has put upward pressure on prices as Chinese manufacturers have offered BF3 at higher rates. This increased offer from China has coincided with active demand in the USA, particularly from downstream industries such as semiconductors. As per the market sources, Despite the May Day Holidays dampening demand in the Chinese market, the USA has seen sustained demand from the Construction sector, albeit at a moderate level. This has contributed to a balanced supply and demand situation in the USA, with sufficient supply to meet the current demand.
Focusing on the USA, the market has witnessed the most pronounced price changes. The quarter has seen an overall bullish trend, with prices consistently rising. Factors such as steady demand from the semiconductor sector and sporadic surges in the pharmaceutical industry have sustained this upward momentum. Seasonal variations have had minimal impact, as demand has remained relatively constant. The correlation between logistics constraints and price rises is evident, particularly with increasing freight costs and limited container availability exacerbating supply-side pressures.
Conclusively, the quarter-ending price of USD 7995/MT for Boron Trifluoride CFR Houston underscores the positive pricing environment. The overall sentiment has been decisively bullish, driven primarily by sustained demand and logistical challenges, making the quarter notably favorable for market participants.
APAC
In Q2 2024, the Boron Trifluoride (BF3) market in the APAC region experienced a mixed environment. This quarter has been significantly challenging for BF3 due to a plethora of factors. Predominant among these is the overall decline in demand from key industries, including semiconductor and pharmaceutical sectors, which previously underpinned robust market activity. The weakening of purchasing sentiments, exacerbated by adverse macroeconomic indicators and subdued industrial activities. Additionally, increased operational efficiencies and higher production rates among manufacturing firms resulted in an oversupply of BF3, creating a buyer's market and driving prices down.
In India, the most marked price changes were observed. The prices of Boron Trifluoride (BF3) in India have experienced an uptrend in May 2024, primarily due to a surge in demand from terminal industries. This heightened demand has exerted pressure on the supply of BF3 in the market, leading to a tightening of supply-demand dynamics and subsequent price increases. However, towards Q2-end, Boron Trifluoride prices have declined in India's domestic market, primarily due to reduced demand from the downstream Semiconductor and Pharmaceutical sector. The usual steady and dependable demand from the Semiconductor and pharmaceutical industries has waned, leading to an oversupply and subsequent drop in prices. Manufacturers have reported a noticeable decrease in inquiries and transactions, resulting in an imbalance in the market.
Europe
In Q2 2024, the market for Boron Trifluoride (BF3) exhibited a mixed trend influenced by several key factors. Demand from downstream industries, including pharmaceuticals, electronics, and chemical manufacturing, remained average. In addition, inflationary pressures persisted affecting overall industrial activities and financial liquidity.
Manufacturing firms operated at reduced rates throughout the quarter, a strategic decision to ensure market stability and prevent oversupply. This cautious approach was partly due to concerns over fluctuating raw material prices and uncertainties in the broader economic landscape. The market difficulties were further intensified by the increase in crude oil prices following OPEC+'s production cuts. This surge in crude oil prices led to increasing overall production expenses for BF3. Furthermore, Economic difficulties were compounded by stringent monetary policies across Europe, which suppressed economic activity and reduced purchasing power, leading to weaker demand for BF3.
Overall, The BF3 market saw moderate fluctuations in pricing, reflecting the balance between supply adjustments and steady demand. While some regions reported a slight uptick in orders, others experienced a more subdued market environment, influenced by local economic conditions and regulatory changes.
