For the Quarter Ending December 2024
North America
In Q4 2024, the North American naphthalene market experienced a mixed trend, with an initial price rise followed by a decline later in the quarter. Early in the quarter, prices increased due to robust demand from downstream industries, including phthalic anhydride production and construction. The resilience of the construction sector and fluctuations in feedstock coal prices supported this upward momentum.
Midway through the quarter, the market saw a shift as demand from key sectors, such as dyes, pigments, and phthalic anhydride, began to weaken. Regulatory concerns over phthalates, coupled with improved supply conditions and steady production levels, created bearish sentiment. Despite modest growth in construction employment and spending, persistent challenges like high interest rates and supply chain issues limited further demand growth.
By the end of the quarter, naphthalene prices stabilized as supply-demand dynamics reached equilibrium. The market, while fluctuating, showed an overall bullish trend compared to the previous quarter, recording a 3.8% increase. This reflects the initial strong demand and price rise that offset the later bearish phase, highlighting the evolving market dynamics throughout the quarter.
APAC
In Q4 2024, the Chinese naphthalene market demonstrated a consistent bearish trend, with prices declining throughout the quarter, ultimately registering an 11.5% quarter-on-quarter decrease. Despite stable production levels and steady coal prices, the market faced challenges driven by weak demand fundamentals from major downstream sectors such as phthalic anhydride and synthetic resins. The subdued activity in the construction sector further compounded the decline, as demand for plasticizers and related materials weakened. Excess supply in the market exerted additional downward pressure on prices, as stockpiles of naphthalene grew ahead of the Lunar New Year, reflecting cautious purchasing behaviour from downstream industries. While demand for phthalic anhydride remained stable, other sectors showed limited buying interest, leading to reduced consumption of naphthalene. Geopolitical tensions affecting crude oil prices and currency fluctuations added to the cautious sentiment in the market. By the end of the quarter, naphthalene prices stabilized as supply-demand dynamics balanced, supported by consistent production and export stability in neighbouring markets like Japan. However, the overall bearish sentiment throughout the quarter was driven by declining demand, oversupply, and lacklustre performance in key downstream sectors, contributing to the significant quarterly decline in prices.
Europe
In Q4 2024, the German naphthalene market saw a quarter-on-quarter price increase of 9.2%, reflecting a generally bullish trend throughout the period. At the beginning of the quarter, prices remained stable, supported by balanced supply-demand dynamics and consistent production levels. The market benefited from moderate demand, particularly from sectors such as textiles and plastics, which helped maintain stable prices. The feedstock market also saw steady conditions, allowing for a consistent price level. As the quarter progressed, naphthalene prices saw a notable uptick, driven by robust demand and supply chain disruptions, particularly in the wake of shifting energy sourcing and production challenges. Despite the rise in demand, however, the construction sector remained subdued, contributing to weaker demand from phthalic anhydride production. As a result, the market experienced a slowdown in demand towards the end of the quarter. In December, the German naphthalene market witnessed a slight price decline, attributed to the ongoing challenges in the construction sector and weak downstream demand. This shift led to a modest drop in prices. However, the overall quarter remained positive, with the market demonstrating resilience and achieving a quarter-on-quarter price increase of 9.2%, reflecting strong demand and stable production amidst a mixed market outlook.
For the Quarter Ending September 2024
North America
The third quarter of 2024 for Naphthalene in North America exhibited a notable trend of increasing prices driven by several key factors. Market dynamics were influenced by a combination of supply and demand variables, logistics challenges, and economic indicators. The tightening supply chain, coupled with stable demand from downstream industries, contributed to the upward pressure on prices. Additionally, logistical hurdles and supply disruptions further exacerbated the price incline, creating a bullish environment for Naphthalene pricing.
In the USA specifically, significant price fluctuations were observed, with a marked increase of 5% from the first half to the second half of the quarter. This surge in prices reflects the heightened market volatility and the impact of various external factors on pricing dynamics. Comparing to the same quarter last year, the prices experienced a modest decline of 3%, indicating a shift towards a more bullish market sentiment in the current year.
The quarter concluded with Naphthalene Refined priced at USD 1790/MT CFR Houston in the USA, marking a substantial increase from the beginning of the quarter. This upward trajectory underscores the positive pricing environment that characterized the third quarter, emphasizing the resilience and adaptability of the Naphthalene market in response to evolving market conditions.
APAC
In Q3 2024, the Naphthalene market in the APAC region experienced a period of decreasing prices, influenced by various factors. The market sentiment was predominantly negative, with prices showing a significant decline from the same quarter last year, down by 9%. This downward trend was further emphasized by a 2% decrease from the previous quarter in 2024. The overall pricing environment exhibited a consistent negative trajectory, with a notable -3% price difference between the first and second half of the quarter. In Japan, the market saw the most significant price changes, with prices for Naphthalene Refined FOB Osaka dropping to USD 580/MT by the end of the quarter. This decline was driven by weak demand from downstream industries, as well as seasonality factors impacting production and consumption patterns. The correlation between price changes and market dynamics highlighted a challenging period for Naphthalene pricing in Japan, reflecting a bearish outlook for the commodity.
Europe
In the third quarter of 2024, the Naphthalene pricing in the Europe region experienced a notable uptrend, particularly in Germany, showcasing significant price fluctuations. The market dynamics were influenced by various factors that culminated in the prevailing price of USD 950/MT of Refined Naphthalene FOB Hamburg. This quarter witnessed a remarkable 38% increase from the same period last year, signifying a substantial shift in pricing trends. The market was notably impacted by supply disruptions, logistical challenges, and decreased production costs. These factors, coupled with increased transportation costs and supply chain issues, contributed to the overall bullish outlook in the Naphthalene market. Additionally, the stability in feedstock prices and steady demand from downstream sectors played a crucial role in driving prices upwards. Germany, in particular, experienced the most significant price changes, with a 2% increase from the previous quarter and an 8% variation between the first and second half of the quarter. This underscores the volatility and sensitivity of the market to various internal and external factors, ultimately leading to the observed price fluctuations. Overall, the pricing environment for Naphthalene in Q3 2024 has been positive, reflecting a bullish market sentiment characterized by increasing prices and evolving market conditions.
For the Quarter Ending June 2024
North America
In Q2 2024, the Naphthalene market in North America exhibited notable stability, with prices reflecting consistent trends and moderate fluctuations. This quarter has been marked by a delicate balance between supply and demand dynamics, maintaining the overall stable sentiment within the region. Key factors influencing this stability include sufficient inventory levels, steady production rates, and moderated trading activities. Additionally, the market's response to economic changes and fluctuating feedstock prices provided a cushion against significant price volatility.
In the USA, the stability of Naphthalene prices was particularly pronounced, albeit with minimal variations. Overall trends indicated a cautious yet steady market environment, with a marked resilience against sharp price shifts. Seasonal impacts were relatively muted, ensuring that prices remained within a narrow band. The correlation between supply consistency and demand moderation further reinforced the stable pricing context. Notably, the percentage change from the same quarter last year stood at -19%, highlighting a significant year-over-year decline. In contrast, the previous quarter in 2024 recorded a modest increase of 2%, signifying a slight upward adjustment in prices.
The first and second halves of the quarter exhibited identical pricing trends, with no deviation in prices, underscoring the unwavering market conditions. Overall, the pricing environment throughout Q2 2024 has been stable, driven by balanced supply-demand fundamentals and moderated trading activities, ensuring no significant disruptions in the market dynamics.
APAC
The second quarter of 2024 has been marked by an upward trend in Naphthalene prices across the APAC region, driven by several significant factors. Key influences include heightened demand from downstream sectors, particularly in the dyes and pigment industries, coupled with constrained supply dynamics due to reduced production rates and operational challenges within manufacturing units. Additionally, fluctuations in feedstock coal prices and geopolitical tensions have contributed to increased market volatility, further supporting a bullish pricing environment. Focusing on Japan, the country has experienced the most substantial price fluctuations within the region. Overall trends indicate a progressive rise in prices, influenced by seasonal demand peaks and robust purchasing activity from end-users. The correlation between increased buying interest and seasonal factors such as higher summer demand for Phthalic Anhydride has reinforced the upward price momentum. Compared to the same quarter last year, there has been a year-over-year decrease of 5%, reflecting a recovery from previous market lows. However, the quarter-on-quarter price change from Q1 2024 is a positive 2%, signalling a gradual resurgence in market confidence. The first half of the quarter saw more pronounced price increments, with a noted increase of 3% when comparing the first and second halves. This trend underscores a consistent escalation in market sentiment and pricing dynamics. Concluding the quarter, the price of Naphthalene refined in Japan encapsulated the prevailing upward trajectory. Overall, the pricing environment for Naphthalene in Japan has been positive, underscoring a robust market outlook amidst improving demand and calculated supply management.
Europe
The Naphthalene market in Europe during Q2 2024 witnessed significant price declines, driven by several interrelated factors. Key contributors to this downward trend included oversupplied inventories, weak demand from downstream sectors, and diminishing production costs. The decline in demand from the derivative sectors, particularly the plasticizer and pharmaceutical industries, exacerbated the oversupply situation. The sluggish economic activity and cautious purchasing behaviour further dampened market sentiment, leading to a bearish price outlook. Additionally, the volatility in the feedstock coal market, with prices fluctuating below the USD120 USD/ton mark, added to the complexities, as energy costs and raw material supplies became more unpredictable. Focusing on Germany, the market experienced the most pronounced price changes within Europe, reflecting a consistent decrease in Naphthalene prices. Overall trends indicated persistent oversupply and muted demand, compounded by seasonal factors such as lower industrial activity during the quarter. The price decline for Naphthalene in Germany was stark, with a -46% change from the same quarter last year, underlining the severity of the market's downturn. Compared to the previous quarter in 2024, prices fell by -18%, illustrating the ongoing negative sentiment. In the first half of the quarter, prices persisted in a gradual descent, dropping by -2% in comparison to the latter half. This steady decline highlighted the continuous imbalance between supply and demand. The pricing environment for Naphthalene in Europe, and particularly in Germany, has been distinctly negative, driven by overwhelming supply and tepid demand, leading to sustained price erosion.
For the Quarter Ending March 2024
North America
The Naphthalene market in North America witnessed a challenging first quarter of 2024, characterized by weak price trend and a negative sentiment. Several factors contributed to this downward trend. Weak demand from downstream industries, such as plastics and resins, played a significant role in the subdued market conditions.
The sluggish purchasing activities and limited market trades resulted in ample product availability and high inventories, further pressuring prices. Additionally, the decline in feedstock coal prices had a negative impact on Naphthalene prices, as it lowered production costs for manufacturers. In the USA, which experienced the maximum price changes, the overall trend for Naphthalene prices in Q1 2024 was negative.
The prices decreased by 26% compared to the same quarter last year, reflecting the challenging market conditions. The quarter also saw a 2% decrease in prices compared to the previous quarter, highlighting the continued downward trajectory. The quarter-ending price for Naphthalene in the USA was recorded at USD 1642/MT of Naphthalene Refined CFR Houston. Overall, the Naphthalene pricing environment in North America in Q1 2024 can be described as negative and stable, with decreasing prices driven by weak demand and ample supply.
APAC
In Q1 2024, the Naphthalene market experienced ongoing declines and marginal gains, marked by slow market uptake and sluggish purchasing dynamics. This quarter, the Naphthalene market persisted in its downward trajectory. The broader economic climate significantly influenced weak downstream demand and an absence of industry growth. Domestic manufacturers in primary production regions sustained regular production levels and maintained abundant stock. Coal, a key raw material market, witnessed a downturn with restricted supply and demand, prompting manufacturers to further reduce prices. In Japan, the Naphthalene supply continues to meet market demand sufficiently. Significant inventories and abundant stock held by major Naphthalene players have impacted domestic market trading. Moreover, there are indications of weakened market sentiments and discussions surrounding decreasing spot prices in the product market. Additionally, purchasing activities have remained subdued due to diminishing purchasing power among suppliers. In March 2024, the price of Naphthalene in Japan declined to USD 591/ton FOB Osaka. Sufficient inventory levels and a lack of enthusiasm from buyers for large-scale purchases led to weak market fundamentals.
Europe
The Naphthalene market in Europe experienced a challenging first quarter of 2024, with prices declining throughout the period. Several factors contributed to this downward trend. One significant factor was the subdued demand from the downstream market, particularly in the plasticizer and dyes intermediate sectors. This lackluster demand led to reduced sales volumes and weakened trading fundamentals. Another factor that impacted prices was the availability of Naphthalene. The market saw high levels of supply, thanks to increased production rates among industrial facilities. Additionally, there were substantial stockpiles among primary producers, further adding to the supply dynamics. In terms of seasonality, the first quarter typically sees lower demand for Naphthalene compared to other periods. This, coupled with the weak market fundamentals, contributed to the bearish sentiment in the market. Germany, in particular, experienced notable price changes during this period. Prices declined by a significant percentage from the previous quarter, reflecting the overall downward trend in the market. The price comparison between the first and second half of the quarter showed a further decline in prices. During March 202, the price of Naphthalene was priced at USD 920/MT of Refined Naphthalene FOB Hamburg in Germany.
