For the Quarter Ending September 2024
North America
Throughout Q3 2024, the North American market for Dinitrochlorobenzene exhibited a fluctuating trajectory, with initial price increases eventually yielding to declines as the quarter unfolded. In July, prices rose due to several influential factors. A significant contributor was the improved consumer optimism regarding business conditions, which fostered a positive outlook and supported higher Dinitrochlorobenzene prices. Additionally, supply chain disruptions caused by blank sailings—stemming from ships being rerouted around the Cape of Good Hope (COGH) due to severe port congestion in both Asia and North America—also played a role in the initial price increase.
However, the market landscape shifted dramatically in August and September, marked by a significant drop in demand at the fastest rate observed in recent months. In response to this declining demand, many market participants began to reduce prices to stimulate sales, further accelerating the downward trend for Dinitrochlorobenzene.
Compounding these challenges was a notable decrease in inflation, primarily driven by falling energy prices, which alleviated business overhead costs. This favorable environment enabled companies to lower prices for consumers, contributing to the overall decline in Dinitrochlorobenzene costs. Within the USA, the market experienced the most pronounced fluctuations in pricing.
Asia Pacific
In Q3 2024, the APAC region witnessed a fluctuating trend in Dinitrochlorobenzene pricing, marked by initial increases followed by notable declines. Early in the quarter, prices rose due to a combination of strong business sentiment and escalating production costs. India's manufacturing sector showed remarkable growth, highlighted by one of the fastest expansions in international sales. Although there was a slight slowdown in new orders and output, the sector continued to flourish, driven by robust demand from various global markets, including Asia, Europe, North America, and the Middle East. This heightened international demand placed significant upward pressure on prices. However, as the quarter progressed into August and September, Dinitrochlorobenzene prices began to decline markedly. This shift was primarily due to a reduction in new business and orders, influenced by changing consumer preferences and increased competition among manufacturers. As a result, demand growth moderated, prompting firms to lower their prices. Additionally, export growth reached its slowest pace since April, indicating weak global demand and reinforcing the downward trend in prices. By the end of the quarter, the price for 2,4-Dinitrochlorobenzene (DNCB) Ex-Mumbai stood at USD 108,500/MT.
Europe
Throughout Q3 2024, the European market for Dinitrochlorobenzene exhibited a mixed pricing trend, with Spain being the region most significantly impacted. In July, prices experienced an uptick, fueled by positive consumer sentiment and heightened purchasing activity. This increase coincided with peak seasonal demand, further intensified by ongoing capacity constraints and logistical challenges, particularly those stemming from congestion in the Red Sea, which significantly affected shipping costs and spot rates. However, the trend shifted in August and September as several key factors converged to exert downward pressure on prices. The overall economic landscape in Europe faced challenges that weakened consumer sentiment and resulted in a decline in domestic demand for various products, including Dinitrochlorobenzene. Additionally, a notable decrease in inflation rates, along with lower energy prices and favorable base effects, alleviated pricing pressures. These developments led to reduced costs for imported Dinitrochlorobenzene, prompting suppliers to adjust their prices downward. By the end of the quarter, the price settled at USD 1,500/MT for 2,4-Dinitrochlorobenzene (DNCB) CFR Barcelona in Spain, reflecting a prevailing sentiment of decreasing prices within the market.
For the Quarter Ending June 2024
North America
In Q2 2024, Dinitrochlorobenzene pricing in North America experienced a mixed trajectory, reflecting diverse market dynamics. The quarter saw an initial increase in prices, followed by a mid-period decline, and a subsequent rise towards the end.
In April, prices rose due to a surge in domestic demand. Consumers, undeterred by cost fatigue, displayed a willingness to spend, leading to stronger retail sales and a higher demand for Dinitrochlorobenzene. However, prices fell in the middle of the quarter as demand softened. The decrease in new orders and a contracting order backlog indicated a gradual economic slowdown. Additionally, the Federal Reserve's decision to maintain high interest rates, aimed at stabilizing inflation, inadvertently eroded consumer purchasing power, adding pressure to prices. Prices rebounded in June due to increased cargo import volumes at U.S. ports. Retailers ramped up stock levels to meet rising demand, especially as they approached the peak shipping season. This boost in import activity contributed to the upward trajectory in prices.
Overall, the quarter demonstrated a varied pricing environment for Dinitrochlorobenzene in the USA region, marked by initial increases, a mid-period decline, and a final recovery.
APAC
During Q2 2024, the pricing landscape for Dinitrochlorobenzene (DNCB) in the APAC region has experienced a mixed trajectory. The prices increased in April influenced by a confluence of factors. Across the manufacturing sector, a sustained growth trajectory was observed, with manufacturers noting robust demand for their products both domestically and globally. This surge in demand was particularly pronounced across diverse regions spanning Asia, Africa, Europe, the Americas, and West Asia, significantly bolstering the upward momentum of prices. However, prices declined in May and June due to reduced new orders and logistical challenges, particularly in the export sector, led to an oversupply within the domestic market. Economic indicators pointed to easing inflationary pressures, notably a drop in fuel costs, which translated to reduced operational expenses for companies and subsequently lower product prices. Additionally, the ongoing geopolitical instability in key regions disrupted supply chains, contributing to heightened market volatility. Despite a robust start to the year, the manufacturing sector faced headwinds due to reduced working hours amid severe heatwaves, leading to a slowdown in output. This, in conjunction with logistical hurdles exacerbated by geopolitical tensions, further strained the market. The quarter-ending price for 2,4-Dinitrochlorobenzene (DNCB) Ex-Mumbai in India stood at USD 110500/MT.
Europe
In Q2 2024, the pricing landscape for Dinitrochlorobenzene in Europe demonstrated a mixed trend influenced by various economic factors. In April, prices rose as the economy showed signs of improvement and consumer spending increased, driving up demand for Dinitrochlorobenzene. This uptick in demand pushed prices higher. However, in May, prices declined due to a combination of factors. Companies faced dissatisfaction with business conditions, attributed to a lack of effective demand in the domestic market. Persistent inflationary pressures and high interest rates led to restrained consumer expenditure, with many sectors adopting a cautious "wait and see" approach. Additionally, currency appreciation reduced import costs for Dinitrochlorobenzene, further contributing to the price decline. By June, prices rebounded as consumer sentiment improved for the fourth consecutive month, boosting domestic demand. The brighter economic outlook in Europe, particularly in its largest economy, supported the upward movement in prices. Overall, the quarter's pricing for Dinitrochlorobenzene in Europe was characterized by initial increases, a mid-period decline, and a recovery towards the end of the quarter.
For the Quarter Ending March 2024
North America
In Q1 2024, the pricing of Dinitrochlorobenzene in the North America region witnessed notable fluctuations, influenced by various factors shaping market conditions. The pricing trend throughout the quarter exhibited a mixed pattern, marked by shifts in both supply and demand dynamics, alongside external factors impacting the market.
The price trajectory of Dinitrochlorobenzene in the region followed a nuanced pattern, with increases observed in January, declines in February, and subsequent increases again in March. At the onset of the quarter, Dinitrochlorobenzene prices surged due to heightened buying activity in downstream sectors. Furthermore, disruptions at two crucial shipping chokepoints, namely the Suez Canal and the Panama Canal, led to increased costs for U.S. retailers, consequently resulting in higher prices for consumers. Midway through the quarter, prices experienced a decline as cautious consumer attitudes towards the economy prevailed. Factors such as sluggish retail sales and subdued consumer spending contributed to this decline. Persistent inflationary pressures further exacerbated consumer caution, prompting a conservative approach to finances. However, prices rebounded slightly in March, driven by an improvement in business sentiments. This improvement was fueled by a steady increase in new orders from end-users, which maintained overall demand high in the USA market.
Overall, the pricing environment for Dinitrochlorobenzene in Q1 2024 can be characterized as unstable, with fluctuations driven by changes in demand, supply, and external factors, highlighting the dynamic nature of the market during this period.
Asia Pacific
In the APAC region during Q1 2024, the pricing dynamics for Dinitrochlorobenzene (DNCB) exhibited a mixed pattern, influenced by several significant factors. Initially, prices experienced an uptick as demand surged from both domestic and international markets, placing strain on the supply chain. In response, market participants adjusted their quotations upwards to capitalize on the heightened demand and maximize profits. However, prices took a downturn in the middle of the quarter, primarily due to an oversupply situation in the domestic market. This oversupply was fueled by the robust expansion of India's manufacturing sector and a notable surge in factory output. Additionally, the continuation of elevated interest rates in key export destinations like the USA and Europe contributed to dampened foreign demand for the product. Nevertheless, prices rebounded towards the end of the quarter, driven by optimistic market sentiments influenced by several factors. The ongoing expansion of the manufacturing sector, both domestically and internationally, contributed to strong demand, bolstering sales and overall business activity. Furthermore, steady domestic demand for DNCB within the chemical and healthcare sectors added pressure on existing supplies, leading to a price hike. In conclusion, the latest quarter-ending price for DNCB in India stood at USD 1313/MT, reflecting the complex interplay of demand, supply, and market sentiment that characterized the pricing dynamics during Q1 2024 in the APAC region.
Europe
The first quarter of 2024 has been a period of fluctuating prices for Dinitrochlorobenzene (DNCB) in the European market. The market has experienced significant factors that have influenced prices during this period. In Spain, the pricing trends for DNCB have been particularly noteworthy. The market has seen a surge in prices in January, signaling a positive start to the year. This increase in prices can be attributed to increased demand and dwindling supplies. However, prices have declined in February, mainly due to lower demand from downstream industries and a weakened overall market sentiment. Moreover, the decision by the central bank to maintain interest rates at their current levels exacerbated strain on consumers, constraining their purchasing power and perpetuating a subdued demand environment. Although, prices increased in March, due to the improving business outlook in the Spanish market played a pivotal role, stimulating demand for various commodities, including Dinitrochlorobenzene. Industry stakeholders have leveraged these favorable market conditions to set higher prices, taking advantage of the existing demand-supply disparity. Overall, the pricing environment for DNCB in the European market during the first quarter of 2024 can be described as unstable. The market has been influenced by a combination of supply and demand factors, as well as geopolitical tensions and currency fluctuations. The latest quarter-ending price for DNCB in Spain is USD 1420/MT CFR Barcelona.
For the Quarter Ending December 2023
North America
The fourth quarter of 2023 brought significant developments to the North American Dinitrochlorobenzene market, especially in the United States. Initially, prices experienced a moderate increase from October to November, driven by heightened consumer spending, indications of easing inflation, and more affordable gas prices, leading to an overall surge in demand. However, a decline occurred in December, attributed to reduced demand from downstream industries and ample supply in the market.
In the US market specifically, heightened consumer confidence and sustained high demand prevailed due to decreased inflationary pressures, resulting in increased consumer spending. The depreciation of the US dollar against foreign currencies, particularly the Chinese yuan, led to more expensive imports and restricted supply in the domestic market. These factors, along with heightened demand during the holiday season, contributed to elevated Dinitrochlorobenzene prices in the US. Nevertheless, prices declined towards the end of the quarter, influenced by a resurgence of inflationary pressure, prompting consumers to exercise caution in their spending and impacting the overall demand for Dinitrochlorobenzene.
In summary, the Dinitrochlorobenzene market in the North American region during Q4 displayed a mixed pattern influenced by factors such as inflation, interest rates, and consumer behavior.
APAC
In the APAC region, the fourth quarter of 2023 for Dinitrochlorobenzene (DNCB) was characterized by several factors that impacted the market and prices. First, there was a strong demand for DNCB from the healthcare and pharmaceutical sectors, leading to an increase in prices. Additionally, constrained supplies within the market further contributed to the price rise. Another significant factor was the rise in the costs of key raw materials, such as sulphuric acid and nitric acid, which resulted in higher production costs and subsequently higher prices for DNCB. In terms of India, which experienced the most significant changes in prices, the market saw a bullish trend in November, driven by increased demand and constrained supply. The manufacturing sector in India also showed expansion, with an acceleration in output and new orders. However, the market situation turned bearish in December, with a slight decline in prices. Factors such as slower demand and high interest rates contributed to this decrease. Overall, the pricing trend for DNCB in India showed an increase in October and November, followed by a decrease in December. The price of 2,4-Dinitrochlorobenzene (DNCB) Ex-Mumbai in India for the current quarter is USD 1267/MT.
Europe
The Dinitrochlorobenzene (DNCB) market in Europe during the fourth quarter of 2023 faced several significant factors that influenced prices. Initially, there was an improvement in Dinitrochlorobenzene prices, driven by increased demand from end-user sectors such as printing, plastic, and textiles. This upward trend was fueled by a rise in consumer spending and a reduction in market inventories. However, prices later declined due to persistent inflationary pressures, particularly stemming from high energy costs, which negatively affected consumers' purchasing power. This downturn in prices coincided with an overall slowdown in business activity, marked by a contraction in new orders and purchases. In Spain, which saw the maximum changes in prices, the market situation remained stable. The country experienced a moderation in inflation, driven by lower fuel prices and slower food price increases. However, Spain's inflation rate still exceeded the European Central Bank's target. The supply of Dinitrochlorobenzene in the domestic market was low to moderate, leading to constrained inventories. On the demand side, consumers remained inclined towards spending, despite contending with high interest rates. During the fourth quarter of 2023, the price of 2,4-Dinitrochlorobenzene (DNCB) CFR Barcelona in Spain was USD 1420/MT.
For the Quarter Ending September 2023
North America
Dinitrochlorobenzene prices dropped throughout the third quarter. Business activity in the United States declined in the third quarter due to lower demand from both domestic and international markets. In the United States, inflation climbed to 3.7% in August for the first time since June 2022, as a strong rise in energy prices pushed prices higher near the end of the summer, impacting consumer confidence even more. Inflationary pressures suggest that the US economy is moving away from the Federal Reserve's 2% target rate, pushing officials to contemplate hiking interest rates later this year. The Federal Reserve hiked its key policy interest rate by 0.25 percent in July, the eleventh time in 17 months, to combat persistent inflation in the US economy, which has resulted in lower market demand. Rising fuel prices and high-interest rates contributed to heightened economic uncertainty and weaker consumer confidence in September. Manufacturers reported another drop in new orders, with the greatest pace of contraction contributing to the negative trend. In order to retain profitability, businesses have continued to liquidate their backlog and stock.
Asia Pacific
Prices for Dinitrochlorobenzene exhibited a varied pattern in the third quarter. In July and August, prices stayed constant but fell in September. In July, India's manufacturing PMI (Purchasing Managers' Index) fell to 57.7 from 57.8 in June, indicating that the manufacturing sector maintained solid growth momentum at the start of the third quarter. Consumption activity increased marginally in July, owing to an increase in new orders from foreign countries. However, supply remained sufficient to meet current market demand, keeping the market stable. The manufacturing sector in India remained robust in August, with factory expansion increasing at the fastest rate in three months, resulting in an increase in production activity and output. This resulted in an adequate supply of Dinitrochlorobenzene in the Indian market. Furthermore, demand remained moderate, with a slight increase in new orders, sales, and consumer purchasing activity. The manufacturing sector in India slowed slightly in September, owing mostly to a slower increase in new orders, which slowed the pace of production expansion, causing prices to fall. The PMI (Purchasing Managers' Index) fell from 58.6 in August to 57.5 in September, indicating a significant slowdown in industrial activity.
Europe
Dinitrochlorobenzene prices in Spain displayed a downward trend in the third quarter. Factory activity in Spain fell for the fifth month in a row in July as local and overseas demand for Spanish goods fell. The Spanish manufacturing Purchasing Managers' Index (PMI) dipped to 47.8 in July, down from 48 in June and 48.4 in May. Furthermore, as a result of repeated rate hikes, high inflation, the energy crisis, and geopolitical dynamics, consumer confidence remained low in August. The continuation of strong inflation, caused by high energy and oil prices, hurt consumer buying power and aided the drop in prices. Dinitrochlorobenzene prices fell further in September as end-user demand remained weak in the face of plentiful market supplies. The overall business activity slowed due to a decrease in new orders and purchases. In September, the European Central Bank agreed to raise interest rates for the tenth time in a row in order to combat stubborn inflation, which has kept market demand on the lower side and sustained the downward trajectory.
