For the Quarter Ending September 2024
North America
In the third quarter of 2024, the North American H Acid market exhibited a stable pricing environment, with the USA experiencing notable price fluctuations. Several factors influenced this stability, including consistent demand from the textile sector, variations in production costs, and ongoing supply chain disruptions. The region also faced plant shutdowns and other disruptions that affected market dynamics. Specifically in the USA, prices showed volatility throughout the quarter, yet the overall trend remained stable, indicating a correlation in price changes.
Seasonal factors played a significant role in influencing price movements, as the market reacted to global events and economic indicators. Compared to the same quarter last year, prices remained relatively steady, reflecting a stable market environment. The quarter recorded a 13% increase from the previous quarter in 2024, highlighting some price fluctuations while maintaining an overall consistent outlook. Notably, prices did not vary between the first and second halves of the quarter.
By the end of Q3, the closing price for H Acid CFR Texas in the USA was reported at USD 5250 per metric ton (MT). This price marked the culmination of a stable pricing environment amidst various market challenges. The interplay of steady demand from key sectors and production dynamics underscored a resilient market despite external pressures.
APAC
In the third quarter of 2024, the Asia-Pacific (APAC) region maintained a stable pricing environment for H Acid, influenced by several significant factors. Supply chain disruptions and logistical challenges played a crucial role in shaping market dynamics. At the same time, tight inventory levels and a reluctance among sellers to lower prices contributed to a bullish market sentiment. China experienced the most notable price fluctuations, demonstrating resilience despite variations in production costs and increased demand from international markets.
The widening price gap between Naphthalene, Ammonia, and H Acid underscored constrained supply conditions, further driving the bullish trend. Overall, the market exhibited stability, with a 13% increase in prices from the previous quarter and no significant price variance between the first and second halves of Q3. Despite facing challenges, the pricing environment remained positive and stable throughout this period.
Additionally, there were no reported plant shutdowns during the quarter, which further supported market resilience. By the end of Q3, the price for H Acid FOB Qingdao in China reached USD 5060 per metric ton (MT), indicating a consistent and stable pricing outlook amidst the prevailing market conditions.
Europe
In the third quarter of 2024, the H Acid market in Europe experienced a significant decline in prices, with Belgium facing the most notable fluctuations. This downward trend was influenced by several key factors, including reduced demand from downstream sectors. Severe weather events, such as torrential rains and floods, exacerbated supply chain disruptions, further contributing to the drop in market prices. Although lower production costs driven by decreased feedstock prices were present, they could not offset the impact of high import costs and low inventory levels.
The relationship between freight charges and market prices highlighted the logistical challenges encountered by market participants, which intensified the price decline. Belgium, as a crucial player in the market, witnessed a consistent negative pricing trend throughout the quarter, reflecting a challenging environment. Seasonal factors also played a role, with a 1% price difference observed between the first and second halves of Q3 underscoring the overall bearish sentiment.
By the end of the quarter, the price of H Acid CFR Antwerp in Belgium reached USD 5191 per metric ton (MT), marking the culmination of this downward pricing trajectory. The combination of weak demand, elevated import costs, and logistical difficulties created a difficult landscape for market players, reinforcing the prevailing negative sentiment in the H Acid sector during this period.
For the Quarter Ending June 2024
North America
In Q2 2024, the H Acid market in North America exhibited an upward trajectory, driven by a confluence of factors that significantly influenced market prices. The quarter was marked by pronounced supply chain disruptions, including port congestion and logistical delays, that impeded the smooth transport of H Acid. Additionally, severe weather conditions further aggravated these issues, causing production delays and shipment deferments. These disruptions were compounded by seasonal holidays that temporarily halted market activities, creating an imbalance between supply and demand.
In the USA, the price escalation was particularly notable, driven by an insatiable demand from downstream sectors that far outpaced available inventories. The bullish sentiment was exacerbated by rising production costs, attributed to the increased prices of essential feedstocks like Naphthalene and Ammonia. Furthermore, elevated freight charges due to ongoing supply chain bottlenecks and high energy costs contributed to the price surge. Seasonal factors such as holidays and festivals played a crucial role in shaping the market dynamics, leading to short-term spikes in demand and subsequent price increases. The overall trend in the USA reflected a positive pricing environment, with a notable 6% price differential between the first and second half of the quarter. The correlation between feedstock costs, freight charges, and downstream demand underscored the sustained upward momentum in the market.
Concluding the quarter, the price of H Acid in the USA reached USD 4820/MT CFR Texas, indicating a consistent increasing sentiment throughout the period. The overall pricing environment has been decidedly positive, driven by a complex interplay of supply constraints, heightened demand, and rising production and transportation costs.
APAC
In Q2 2024, the H-Acid market in the APAC region experienced a significant bullish trend, driven primarily by supply chain disruptions and heightened production costs. Key factors influencing the market included port congestion in major Asian regions, exacerbated by adverse weather conditions and extended holidays in the leading exporting country, causing shipment delays and increased freight charges. Additionally, the rise in feedstock prices for Naphthalene and Ammonia contributed to the overall escalation in production costs, further pushing H-Acid prices upward. The downstream Construction and Textile sectors witnessed strong demand, leading to increased procurement activities to balance supply and demand dynamics. In South Korea, the H-Acid market saw the most substantial price adjustments. The quarter was marked by a notable price surge, spurred by persistent supply chain bottlenecks and insufficient inventory levels to meet the robust demand from downstream sectors. The seasonality factor, particularly the post-Lunar New Year market activities, also played a crucial role in firming up price indications. The correlation between increased feedstock costs, heightened demand, and supply chain disruptions resulted in a marked upward trend in H-Acid prices. Comparing the first and second half of Q2 2024, there was a 7% price increase, reflecting the cumulative impact of these market forces. The overall pricing environment has been decidedly positive, with the quarter ending with H-Acid priced at USD 4700/MT CFR Busan in South Korea, indicating a thriving market sentiment despite the challenges faced. This sustained increase underscores the resilience and bullish outlook of the H-Acid market in the APAC region.
Europe
In Q2 2024, the European H-Acid market experienced significant upward price pressure, predominantly due to robust demand from downstream sectors such as construction, paint, and coating, which intensified in response to ongoing supply chain disruptions and increased production costs. The labor imbalance within the construction sector added further complexity, exacerbating supply constraints and upward price trends. Additionally, the geopolitical turmoil and the Red Sea Crisis severely affected global logistics, leading to increased import costs and delays, thereby tightening the H-Acid supply across Europe. Belgium, in particular, witnessed the maximum price fluctuations within the region. The country's H-Acid market saw a substantial rise due to a combination of local protests causing transportation blockages, adverse weather conditions disrupting supply chains, and increased import activities to meet escalating demand. The seasonality factors, notably holidays and festivals in key exporting regions, further constrained supply and influenced price volatility. The strong demand from the construction sector, coupled with rising feedstock prices, underpinned the bullish trend, with a significant price increase in the second half of the quarter compared to the first. Overall, the pricing environment this quarter has been predominantly positive, marked by a relentless upward trajectory. Conclusively, the latest quarter-ending price for H-Acid in Belgium was USD 4810/MT CFR Antwerp, reflecting an unwavering bullish sentiment driven by a convergence of demand-supply dynamics and external economic factors.
For the Quarter Ending March 2024
North America
The H Acid market in North America experienced a decline in prices during Q1 2024, mainly driven by factors such as sluggish demand from the downstream textile industries and ample supply levels. The existing inventory levels in storage facilities were sufficient to meet the low demand, resulting in a decrease in prices. Additionally, the decline in feedstock prices, including Sulphuric Acid, Ammonia, and Naphthalene, contributed to the overall decrease in production costs, further pressuring H Acid prices downward.
In the USA, which saw the most significant price changes, market participants strategically stocked up on H Acid in January and early February, anticipating potential demand from the downstream textile sector ahead of the Chinese New Year. However, the severe snowstorm in China during February did not significantly impact the market's ability to meet the needs of the downstream sector, as existing inventory levels proved sufficient. The overall trend in H Acid prices during Q1 2024 was bearish, with supply levels being high and demand remaining low. The narrowing spread between H Acid prices and its feedstock components indicated a bearish market sentiment.
Looking at the price changes compared to the same quarter last year, there was a decline in prices. However, there was a slight increase in prices compared to the previous quarter in 2024.
APAC
The H Acid market in the APAC region in Q1 2024 experienced a downward price trend. Several factors influenced market prices during this quarter. Firstly, there was ample supply of H Acid in the market, leading to lower prices. This was due to accumulated inventory levels and reduced demand from downstream Textile sectors. The market players stocked up their inventories in anticipation of potential demand, resulting in a surplus of supplies. Additionally, the production cost of H Acid was lowered as the prices of feedstocks such as Sulphuric Acid, Ammonia, and Naphthalene declined. In South Korea, the market saw the highest price changes compared to other countries in the region. The prices of H Acid declined by 5.35% in the country. The market experienced a bearish sentiment with high supply and low demand. The existing inventories were sufficient to meet the subdued demand from the downstream Textile sectors, resulting in a slow consumption rate. The difference between the prices of feedstocks and H Acid narrowed, indicating a bearish market situation. Overall, the pricing environment for H Acid in Q1 2024 was negative, with prices experiencing a downward trend. The market was influenced by factors such as ample supply, low demand, and reduced production costs. The price comparison between the first and second half of the quarter showed a decline in prices.
Europe
The pricing environment for H Acid in the Europe region in Q1 2024 has been largely negative, with prices experiencing a decline. Several factors have influenced market prices during this quarter. Firstly, there has been a low demand from the downstream textile industries, resulting in lower consumption of existing inventories. This has led to a bearish market sentiment and downward pressure on prices. Additionally, there has been a sufficient supply of H Acid in the market, with inventory levels being adequate to meet the subdued demand. This has further contributed to the downward price trend. In Belgium, which has seen the most significant price changes, the market situation has also been bearish. The demand from the downstream textile sector has been low, and existing inventories have been deemed sufficient to meet this subdued demand. The spread between feedstocks and H Acid has narrowed, indicating a bearish market situation for the product. Overall, the pricing trend for H Acid in Q1 2024 has been negative, with prices experiencing a decline compared to the previous quarter. There has been a correlation between the low demand from the downstream textile sector and the decline in prices. The market sentiment has been bearish, with a high supply and low demand contributing to the downward price trend.
For the Quarter Ending December 2023
North America
The H Acid market in North America during the fourth quarter of 2023 (Oct-Dec) experienced a mixed trend. The market was impacted by several factors, including increased demand from downstream dye intermediate enterprises and a lack of supplies in storage facilities. This led to an uptick in prices for H Acid in the region. Additionally, the prices of Naphthalene and Sulphuric Acid, which are feedstocks for H Acid, followed a downward trend, while Ammonia prices increased.
However, the overall demand for H Acid remained high, driven by the downstream dye intermediate markets. This resulted in a bullish market sentiment. On the other hand, low demand from these downstream ventures, coupled with sufficient stocks in storage units, led to a decline in H Acid prices. The market also witnessed a decrease in trading activities from China to the USA. No plant shutdowns were reported during this period. Among the countries in North America, the USA experienced significant changes in H Acid prices. The market in the USA was primarily influenced by low demand from downstream enterprises and ample product supplies, which led to a bearish market trend. The prices of H Acid declined in the domestic market due to low demand and production cuts among enterprises.
Overall, the H Acid market in North America saw fluctuations in prices during the fourth quarter of 2023. The quarter-ending price for H Acid CFR Texas in the USA was USD 4820/MT.
APAC
In the APAC region, the H Acid market in the fourth quarter of 2023 experienced mixed dynamics. The market was primarily affected by three key factors. Firstly, there was a surge in demand from downstream dye intermediate enterprises, creating a high level of interest in the product. However, this increased demand was not met by sufficient supplies, leading to a tight market condition. As a result, prices for H Acid experienced an upward trend. Secondly, the prices of key upstream raw materials such as ammonia and sulphuric acid inclined, contributing to the overall increase in the operating cost of H Acid. Lastly, the South Korean market, in particular, saw significant fluctuations in price due to the imbalance between supply and demand. The increased demand from the domestic market and the limited inventories forced producers to raise their quotations, resulting in a price hike. However, in H2 of Q4 2024, the prices of H-Acid experienced a decline in its trend due to lower demand from the downstream dye intermediate enterprises. The latest price for H Acid in South Korea at the end of the quarter was USD 4700/MT CFR Busan.
Europe
In the fourth quarter of 2023, the H Acid market in Europe experienced various factors that influenced prices. Firstly, the market was bullish due to high demand from downstream dye intermediate enterprises and low inventory levels. Additionally, the prices of its feedstocks, such as Sulphuric Acid and Ammonia, also increased, contributing to higher operating costs for the commodity. However, the prices of Naphthalene showcased a reverse trend, which further impacted the operating costs. Belgium, in particular, saw a rise in the Consumer Price Index (CPI) to 128.89 points in November, indicating increased inflation. The market situation remained bullish in the country, with high demand from downstream industries leading to an incline in H Acid prices. The Euro to USD exchange rate appreciated by 2.90% in November, further impacting the pricing dynamics. However, in December 2023, the prices of H-Acid showcased a declining trend due to lower demand from the downstream dye intermediate enterprises and low purchasing activities due to sufficient inventory levels. Despite the delay in the shipments due to the rerouting of the ships via the Cape of Good Hope because of the attack on the Red Sea, the prices of the commodity experienced a downward trend due to sufficient stocks in the storage facilities. Considering the bearish market situation of the commodity, the trade inflows from the Chinese market to the Belgium market were slowed down and the production rate of the commodity was also cut by the producers to avoid the overflows of the supplies. No plant shutdowns were reported during this quarter. Overall, the H Acid market in Europe witnessed a bearish trend in the fourth quarter of 2023, driven by low demand, high inventory levels, and reduced operating costs. The prices of H Acid in Belgium reached USD 4840/MT, CFR-Antwerp, at the end of the quarter.
For the Quarter Ending September 2023
North America
In the North American market, the price trend of H Acid declined during the 3rd quarter, ending in September 2023. Due to the low demand from the downstream ventures and adequate stocks in the storage units, the price trend of H Acid followed a downward price trend. Furthermore, the prices of its feedstock Naphthalene and Sulphuric acid inclined, whereas Ammonia followed the opposite price trend. Along with the low demand and production cut among the enterprises, H acid prices declined in the domestic market. Ample product supplies were present among the storage units for the low demand from the domestic market, resulting in the decline of trading activities from China to the USA. A dip in demand from the downstream Dyes and Intermediate enterprises was getting fulfilled by the existing inventories with no more need to top off the commodity. Even after the end of the National Holiday in China in the early week of October 2023, the demand remained lackluster, with low purchasing activities and suppliers remaining hesitant to raise their quotations for the domestic market. Furthermore, it was noted that the US economy grew at a faster pace for about 2 years; despite the high interest rates, inflation remains above 2% at the target level.
APAC
The price trend of H Acid declined during the third quarter ending on September 2023 and reached USD 4800/MT (FOB-Qingdao). Lackluster demand from the downstream Dye Intermediates enterprises and ample stocks among the storage units played a major role in the weak market fundamentals for the commodity. An appropriate amount of inventory among the storage units met the downstream demand with no need for restocking. Furthermore, the prices of its upstream Naphthalene and Sulphuric Acid declined due to adequate inventory levels and slow market offtakes. However, Ammonia prices gained a stance as the rapid consumption and rise in the Urea market surged the production cost. The operating rate for the commodity declined as well, supporting the price trend of the commodity. The spread between the end products and their feedstocks was less which represents the bearish market situation for the commodity. A significant drop in the demand from the downstream Dye Intermediate and Textile enterprises was observed which were fulfilled by the existing inventories. Therefore, the production rate declined to avoid the oversupplies of the commodity in the storage units. The dull market situation made the suppliers decline their offers to secure their profits. Instead, they were obliged to provide discounts on bulk purchases from the buyers.
Europe
During the 3rd quarter ending on September 2023, the price trend of H Acid followed the overall downward trend. The supply of H acid from China to Belgium was traded in sufficient amounts, and the need to restock the storage unit was null. In terms of its feedstocks, the prices of Naphthalene and Sulphuric Acid inclined whereas Ammonia inclined, the weak market situation made the producers reduce their production rate. A dip in the demand from the downstream Dyes Intermediate markets was observed for fulfilling the demand for the commodity; the existing inventories were adequate. In October 2023, with the low customer index, the inflation rate fell, contributing to the low price trend of the Petrochemical enterprises. Furthermore, the inflation rate fell to 2.9% in October 2023 from 4.3% in September 2023. Despite the upcoming festive season, consumer prices have reached their lowest since July 2021. In terms of spread, the difference between the end product and its feedstock is less, representing the bearish market situation.
