For the Quarter Ending December 2024
North America
In Q4 2024, the Diethyl Carbonate (DEC) market in North America experienced a mixed pricing trend, influenced by a combination of demand and supply dynamics. On the demand side, seasonal fluctuations and strong performance in downstream sectors such as pharmaceuticals, agrochemicals, and electronics provided periods of heightened activity, leading to localized price increases. Additionally, the overall economic environment in North America played a pivotal role; regions with robust industrial performance supported demand growth, while areas impacted by economic slowdowns saw subdued market activity.
Supply-side factors also contributed to the mixed trend. Temporary production disruptions, stemming from facility maintenance and sporadic raw material shortages, tightened supply in certain periods, pushing prices upward. Conversely, elevated inventory levels among manufacturers and distributors exerted downward pressure on prices, particularly during periods of weakened demand. Competitive dynamics further influenced pricing, as intensified competition among regional suppliers in some segments stabilized or reduced prices, whereas limited supplier competition in niche applications allowed for price hikes.
Overall, the interplay of these factors resulted in fluctuations across the quarter, with prices reflecting both upward and downward pressures, dependent on localized demand and supply conditions.
APAC
In Q4 2024, Diethyl Carbonate (DEC) prices in the APAC region, particularly in China, India, and the Netherlands, experienced an overall decline driven by a combination of reduced ethanol prices and subdued demand in several key sectors. Early in the quarter, DEC prices surged due to increased production costs and supply constraints in China, coupled with strong demand from the automotive and coatings sectors. However, by November and December, the market saw a significant reversal. The primary factor contributing to the decline was a decrease in ethanol prices, a critical raw material for DEC production, which led to lower production costs and falling import prices in India and the Netherlands. Despite strong growth in the New Energy Vehicle (NEV) sector, which boosted demand for DEC in battery production, overall consumption remained weak in automotive and technical applications. This was compounded by slower economic activity, particularly in industries like construction. As a result, DEC prices fell across all key markets in the region, reflecting the broader global downturn in pricing and demand.
Europe
In Q4 2024, the price trend of Diethyl Carbonate (DEC) in Europe, particularly in the Netherlands, experienced an overall decline due to multiple factors. Throughout the quarter, the market saw a significant reduction in DEC prices across various regions, driven by lower ethanol prices, a key raw material, and reduced demand from major sectors like automotive and technical applications. In October, DEC prices initially surged due to strong demand from automotive and coatings sectors in India, China, and the Netherlands, but the momentum quickly reversed. As production costs declined in China, a leading exporter, and ethanol prices fell, DEC prices in these markets also dropped.
The Netherlands, heavily reliant on imports, saw a price decrease as Chinese export prices dropped, easing procurement costs. Demand in the European region was subdued, particularly in automotive markets, with weaker performance from Germany and France offset by some recovery in Spain. By December, DEC prices dropped further due to continued sluggish demand, despite growth in electric vehicle sales and lithium-ion battery production. Overall, the quarter ended with a bearish outlook for DEC, with prices continuing to decline across key markets.
For the Quarter Ending September 2024
North America
In Q3 2024, the Diethyl Carbonate prices exhibited limited volatility, fluctuating within a tight range amid several influencing factors. The U.S. economy showed resilience, although inflationary pressures and geopolitical uncertainties continued to pose challenges.
Supply trends were shaped by stable manufacturing performance and changing trade dynamics. A minor drop in the PPI for manufacturing industries, from 249.624 in Q2 to 248.383 in Q3, signaled slight production cost savings. The restocking of inventories, following Q1 drawdowns, helped Q2 GDP grow by 3.0%, with 2.7% annual growth expected.
Consumer spending and corporate investments, driven by initiatives like the CHIPS Act, kept demand robust, as inflation dropped below 3.0% in July. However, geopolitical tensions in key regions, along with potential tariffs on imports, raised concerns about supply chains and trade disruptions. The Fed’s forthcoming rate cuts are intended to stimulate household spending and growth, though labor market shifts and trade uncertainties may affect supply dynamics heading into 2025.
Asia
In Q3 2024, the Diethyl Carbonate market in the APAC region experienced a downward trend in prices, influenced by various factors. Supply chain disruptions, geopolitical tensions, and weakening industrial demand contributed to the negative pricing environment. These challenges led to decreased demand across sectors like manufacturing and construction, impacting the pricing dynamics of Diethyl Carbonate. China, in particular, witnessed significant price changes, reflecting the region's overall trend. The quarter recorded a notable -4% decrease from the previous quarter, with a -3% difference between the first and second halves. This downward trajectory continued, culminating in a quarter-ending price of USD 1300/MT for Diethyl Carbonate FOB Shanghai. Despite these fluctuations, the market remained stable, with no major disruptions or plant shutdowns reported during the quarter. This pricing context underscores the challenging economic conditions and uncertainties that shaped the Diethyl Carbonate market in the APAC region during Q3 2024.
Europe
In Q3 2024, the pricing trend for Diethyl Carbonate in the European region witnessed a consistent decrease, with the Netherlands experiencing the most significant price changes. Several factors influenced the market prices during this quarter. Prolonged high inflationary pressure, coupled with subdued demand fundamentals, contributed to the downward trajectory. Ongoing challenges in key sectors like manufacturing and automotive, along with disruptions in transportation and fluctuating raw material costs, added pressure on prices. The quarter also saw disruptions in supply chains and labor shortages impacting the overall market sentiment. Despite stable supply levels, weak demand from various sectors kept the pricing environment negative. The correlation in price changes between the first and second half of the quarter was notable, with a recorded -8% change. This shift reflected the prevailing market conditions and the impact of external factors on pricing dynamics. The quarter-ending price for Diethyl Carbonate CFR Rotterdam in the Netherlands stood at USD 1450/MT, marking a downward trend from the beginning of the quarter. No plant shutdowns were reported during this period, further indicating the challenging market conditions.
For the Quarter Ending June 2024
North America
In Q2 2024, the Diethyl Carbonate market in North America experienced a pronounced downward trend in pricing. The quarter was characterized by a consistent decline in prices, driven by multiple factors affecting the market dynamics. The most significant factor was the persistent decrease in demand from downstream sectors, particularly in coatings, and paints, amid a broader economic deceleration. High interest rates, aimed at curbing inflation, curtailed spending on manufactured goods and capital projects, significantly reducing demand for Diethyl Carbonate.
Additionally, the ease in the cost of imported materials from European and Asian markets, coupled with sufficient regional supplies, contributed to the pricing downturn. Supply chain issues, such as the shutdown of Baltimore's inner harbor and potential strikes by freight rail carriers CN and CPKC, added to the market's bearish sentiment, though these disruptions did not critically impact overall supply.
Focusing on the USA, the country saw the most significant price fluctuations, with an overall negative trend throughout the quarter. This can be attributed to weak demand from key industries and a slowdown in manufacturing activity. Seasonality played a role, with construction spending unexpectedly falling, influenced by rising mortgage rates and reduced investments in private and public construction projects.
APAC
Throughout Q2 2024, the Diethyl Carbonate market in the APAC region experienced stability in the first two months of the quarter followed by a robust upward trajectory, marked by a confluence of demand-driven factors and supply-side constraints. The surge in Diethyl Carbonate prices was driven primarily by heightened demand from downstream sectors such as paints, coatings, and construction. These industries demonstrated a consistent uptick in activity, further amplified by seasonal construction booms and government-led infrastructure projects. Additionally, the resurgence of manufacturing units after disruptions, caused by natural calamities and heatwaves, played a pivotal role in stabilizing the supply, though not without creating temporary bottlenecks. Focusing exclusively on China, this quarter encapsulated significant price fluctuations, attributable to both internal and external market dynamics. The Chinese Diethyl Carbonate sector contended with a range of challenges, including increased freight rates and an unexpected dip in the property sector, which traditionally commands significant Diethyl Carbonate consumption. Despite these headwinds, the overall market sentiment remained bullish, fueled by a stable supply chain and strategic stockpiling by major industry players. Moreover, the price landscape remained overwhelmingly positive, culminating in a quarter-ending price of USD 1410/MT FOB Shanghai for Diethyl Carbonate. This price point underscores an optimistic market environment, characterized by a resilient demand framework and adaptive supply strategies, ensuring sustained growth momentum for the foreseeable future.
Europe
In Q2 2024, Diethyl Carbonate pricing in Europe experienced a significant upward trend, largely driven by elevated import costs and logistical challenges. The primary catalysts for this increase were the high freight rates in the Asian shipping industry and a series of General Rate Increases (GRIs) imposed by carriers. These factors led to considerable hikes in transportation expenses, directly impacting the cost of imported chemicals. Additionally, geopolitical uncertainties prompted U.S. importers to advance orders, thereby amplifying demand for shipping services and exacerbating the strain on freight rates. Focusing on the Netherlands, which witnessed the most pronounced price escalations, the trend in Q2 2024 was distinctly bullish. The downstream paints, coatings, and construction industries demonstrated robust demand, further reinforcing this upward trajectory. Despite fluctuations in construction output within the broader European context, the Netherlands benefited from a resilient construction sector, driven by improving economic activities. In terms of seasonality, the summer months bolstered demand from the construction and automobile industries, thereby sustaining high price levels. The correlation between heightened freight costs and increased raw material prices due to rising upstream crude oil prices also played a critical role. Disruptions in the form of plant shutdowns were notably absent, ensuring a stable supply environment. Overall, the pricing environment for Diethyl Carbonate in Q2 2024 was decidedly positive, culminating in a quarter-ending price of USD 1548/MT CFR Rotterdam in the Netherlands.
