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.
For the Quarter Ending December 2023
North America
The Naphthalene market plunged this quarter, when compared with the previous quarter, and the market trade was held on a need-to basis. The demand of Naphthalene from the downstream plastic and resin market ended on the year-end with sluggishness in the purchasing dynamics.
In terms of the feedstock market, coal prices remain steady this quarter with sluggish market trading fundamentals. Significant manufacturing enterprises increased their purchasing activity toward the end of the year as utilities piled on thermal coal instead of Liquified natural gas to generate additional power and meet demand in the Northern Hemisphere winter.
With the healthy supply of Naphthalene and high inventories among the ports, market dynamics fluctuated in the region. The production rate increased, and major production units declined their operating cost in the wake of feeble trading dynamics. The supply of Naphthalene in the overseas market remains bearish, which resulted in a weak trading environment. The demand for Naphthalene from downstream Polymer and resin industries remains feeble with lower bidding for the fresh stocks.
Asia Pacific
The price of Naphthalene in the Asia Pacific region remains plunged in Q4 2023 with slow market offtakes and sluggish new purchases. Japan's Naphthalene exports declined due to low demand and limited supply. Retailers experienced surplus inventory after importing supplies ahead of schedule, which affected the market's fundamentals. Naphthalene consumption is declining due to decreased consumer trading and dire economic concerns. Notable manufacturers have a reduction in their revenue and profit margins as a result of slowing demand, falling manufacturing costs, and reduced netbacks. Exports of Naphthalene from Japan to other Asian region remain sluggish and the market trades were flat with limited confidence among the suppliers to raise their quotations. Despite a recent downward trend in upstream pricing for coal, a gloomy feeling still permeates the Japan's Naphthalene markets due to stalled demand and subdued year-end requirements. Since a recovery in demand is not anticipated anytime soon, the markets continued to decline towards the end of Q4 2023.
Europe
The Naphthalene market in Europe during the fourth quarter of 2023 faced challenging conditions, with several factors impacting prices. Firstly, there was an oversupply of Naphthalene in the region, leading to a bearish market sentiment. Additionally, weak demand from downstream chemical and dye intermediate sectors further contributed to the downward pressure on prices. Furthermore, the availability of abundant feedstock coal at low prices influenced the market dynamics and resulted in a decline in Naphthalene prices. In terms of specific country analysis, Germany experienced the most significant changes in prices. The country witnessed a decline of 8.07% in Naphthalene prices during Q 4 2023, with limited trading activities and bearish market fundamentals being the primary reasons. The high supply levels and slow market offtakes in Germany, coupled with falling energy prices and large stocks among major producers, further contributed to the downward pressure on prices. Looking at the price trends, there was a decrease of 15% in Naphthalene prices in the current quarter compared to the previous quarter of 2023. However, there was no significant price change compared to the same quarter of the previous year. The latest price for Refined Naphthalene FOB Hamburg in Germany at the end of the current quarter was USD 1280/MT. Overall, the Naphthalene market in Europe during the fourth quarter of 2023 was characterized by bearish sentiments, high supply levels, and weak demand, resulting in a decline in prices. Germany, in particular, experienced significant price changes, reflecting the challenging market conditions.
For the Quarter Ending September 2023
North America
In Q3 2023, the price trajectory for Naphthalene in the US witnessed a bearish price trend in the wake of limited market trades and limited product consumption from the downstream enterprises. The supply of Naphthalene in the USA remains ample to meet the downstream market requirement along with lackluster downstream enterprises. Imports of commodities from Japan to the USA remain feeble this quarter, with a negotiable price trend between the suppliers and buyers. Participation in the Naphthalene markets remained sluggish, and trade volumes were relatively low. Despite the surge in the feedstock coal market, the demand fundamentals from the downstream enterprises remain sluggish, declining the price trend. Operating rates among the enterprises are operated stably with cautiously operating downstream ventures. In Sept, the price of Naphthalene in the USA declined to USD 1876/ton CFR Houston. Oversupply fear hangs over the North American market, and significant players showcase discounts on bulk purchases. Due to an adequate supply and weak demand, the price of Naphthalene also decreased with subdued trade fundamentals.
Asia Pacific
Major Naphthalene producers have cut their production facility operation rate because of sluggish demand and low purchasing appetite. Due to the region's unfavorable trend, some regional and overseas providers have announced price declines. In terms of the feedstock market, the import of Coal in China from Australia has increased to an annual limit of 300 million tonnes; that is, an 82% increase is seen in the consumption of Coal from China. Local market prices continue to decrease as a result of low inventory utilization and bad benchmark futures. Sluggish demand has been the principal cause of the region's decreased commerce throughout the recessionary period. Spot expenditure decreased, and suppliers made purchases based entirely on necessity. The demand for Naphthalene in the downstream Agrochemical and Dyes intermediate market is still impacted by adequate supply and plentiful demand. However, prices in the Chinese market were falling as a result of weak spot negotiations and dealers acquiring feeble quantities at lower rates. In China, the price of Naphthalene during Sept 2023 declined to USD 972/ton CFR Qingdao.
Europe
In Q3 2023, the prices for Naphthalene showcased a bearish market trend with low purchasing rates and sluggish market sentiments. As there have not yet been many production cutbacks or maintenance turnarounds, sufficient material was available on the market, which dropped the prices. Apart from that, imports are improving the supply situation. Trading fundamentals of the Naphthalene market reflect the case in the Pharma and Dyes sector, where the demand remains weak. Naphthalene prices continue to fall as buying sentiments stay bearish. Most suppliers have high inventories at a time when they face a slump in export orders for their end products. The dubious economic outlook had dampened demand further, resulting in a bearish market trend. In this quarter, there were no firmer offers with acceptable product supply of Naphthalene in the European region, along with slow market offtakes from the downstream enterprises. The market fundamentals deteriorated, and manufacturers were offered bulk discounts to clear their existing stocks. Because of product hoarding among production units, downstream demand for Naphthalene in Germany remained stifled.
For the Quarter Ending June 2023
North America
In Q2 2023, the market fundamentals for Naphthalene in the US declined when compared with the previous quarter in the wake of a limited demand outlook and adequate product availability in the region. Due to the availability of sufficient products and the limited trading market, the USA's import of Naphthalene plunged with limited demand fundamentals. Sufficient availability of coal also caused prices to slump on the feedstock coal market. There was a sufficient supply of Naphthalene in the region to meet the requirements of end users. Compared with the local market, fewer trades were observed as a result of low buying ideas against low offer levels. As a result of cautious trading and uncertain market conditions, June loading cargo is being offered at lower prices to attract buying interest from the suppliers. In June 2023, the price of Naphthalene in the US declined to USD 2114/ton CFR Houston. The slow purchasing and declining demand for new stock also led regional producers to revise their Naphthalene prices.
Asia Pacific
In Q2 2023, the price of Naphthalene surged in April 2023 and May 2023 in the wake of limited trades and an increase in trade volume. The rising cost of crude oil due to US supply tightness had led the price to rise in the China market. Furthermore, addressing the demand for Naphthalene was observed to be moderate during the same time frame. On the other hand, the availability of the material continued to remain unchanged, consequently leading the price of the material to follow an upward trajectory. However, in June 2023, the trading fundamentals fell in the wake of slow purchasing activities and limited demand for fresh stocks. In June 2023, the price of Naphthalene in China declined to USD 1025 CFR Qingdao. The overall market demand recovery strength coped with limited buying interest and narrowing profit margins and sales among the significant producers. The production rate among the major enterprises will slump due to limited demand from the downstream PVC and Agrochemicals industries.
Europe
In Q2 2023, the price of Naphthalene in Europe showcased a feeble price trend in the wake of slow trading fundamentals and an increase in product inventory level. The market participant remains skeptical about increasing the Naphthalene prices due to lackluster demand and adequate cargoes traded in the European market. Weak purchasing fundamentals, along with limited demand for fresh stocks, further pressurized the producers with affected margins and narrowing profit. Downstream PVC and Agrochemical industries are heard to operate moderately with cautiously operating downstream ventures. Regarding upstream values, oversupplies of coal at the time of weak demand had impacted the product's European margins. Germany's Naphthalene market has remained weak so far, and the prices have continued to be capped due to oversupplies and bearish demand. The overseas supplies had moreover decreased due to adequate supplies and high inventories. The weaker cost of Naphthalene had generally provoked by a more fragile upstream coal market and recuperating supply.
For the Quarter Ending March 2023
North America
The Naphthalene prices showed a downward trend in the USA in the quarter ending March 2023, backed by the rising supply as producers chose to engage in destocking activities out of concern for an increase in inflation brought on by rising crude oil prices at the termination of March 2023. This quarter, the dynamics of U.S. naphthalene pricing continued to be influenced by low-cost international supplies and weak local demand. The naphthalene price decline was further aided by unchanged purchasing intentions from the textile sector and other competing industries for the product in the U.S. market. While importing costs were falling, the Naphthalene businesses also faced competitive cost pressure on the local U.S. market amidst high stock volume and at the same time, affected the commodity's final negotiations this quarter.
APAC
Due to the volatility of upstream crude oil prices, naphthalene prices in China varied within a narrow range in the quarter ending March 2023. Meanwhile, the market participants showed a wait-and-see attitude amidst the steadily improved economic outlook of China. Moreover, the lack of downstream demand from the textile industries also influenced the n-Butanol prices throughout the Q1 of 2023 in the APAC region. At the start of Q1 2023, the new year lunar holidays in China and the persistent impact of COVID-related market disruptions suppressed economic activity and dampened trading activities in the APAC region. Market participants destocked inventories at lower margins as a result of the delayed economic recovery of the country.
Europe
As production costs in the exporting countries remained stable, the pricing trend for Naphthalene in the European market remained low throughout the first quarter of 2023 as a result of reduced cost pressure. Following shipment delays brought by strikes in the European Union and muted consumer demand sentiment, output decreased in the producing countries. Furthermore, in the Q1 of 2023, the product offtakes by downstream producers remained mild. In the meantime, players in the European market were restricted to trading during 2023's first quarter only for the fulfillment of necessities due to high inflation and insufficient economic growth. In Addition, As OPEC announced a reduction in crude oil supply by the end of March 2023, further impacting the April discussions of Naphthalene, European businesses felt triggering widespread concern.
For the Quarter Ending December 2022
North America
The Naphthalene prices were down in the Quarter ending December 2022, backed by the lower demand from the downstream textile and pharmaceuticals industry along with ambiguity in the upstream crude oil values in the US market. As a result of volatile upstream crude oil, petrochemical prices declined in this quarter, amidst ample supplies weighed on the demand from the paint manufacturers and the other downstream sector of the country in mid-Quarter. The soft domestic market has caused a downturn in Naphthalene prices in the fourth quarter of 2022. Moreover, the ongoing supply chain disturbances and recessionary fears muted the market activities for Naphthalene in the quarter ending December 2022 in the United States. The Naphthalene refined price was quoted at USD 2343/MT CFR Houston (USA) in December 2022.
APAC
The Naphthalene price movement witnessed mixed market sentiments in the quarter ending December 2022 in Asian countries. The Naphthalene prices rise and then fall, bolstered by the volatile upstream crude oil prices and limited availability of stocks in the APAC market. The market margins slumped due to persisting COVID curbs, and manufacturers were compelled to destock the piled-up stocks, prompting price competitiveness and making offtakes at reduced profit margins in the mid-Quarter. The volatility in the upstream crude oil values in the APAC region due to constrained supplies in the market during the fourth quarter of 2022 affected the pricing dynamics of Naphthalene. The Naphthalene Refined was assessed at USD 653/MT FOB Osaka (Japan) in December 2022.
Europe
The prices of Naphthalene witnessed a downward trend in the fourth Quarter of 2022, with a muted demand in the downstream sector in the European market. The lower consumer purchasing confidence contributed to the ease in the Naphthalene costs amidst crippled production activities in the downstream sector of the region. The weak consumer confidence in Europe resulted from the elevated energy costs, soaring inflation, and a slumped economic outlook weighed on the Naphthalene market sentiments across the regional market in the quarter ending December 2022. The market players remained cautious about contracting economic conditions and made sales at lower profit margins amidst the fear of piling of stocks at the end of 2022.
For the Quarter Ending September 2022
North America
The Naphthalene market in the North American region continued a downward trend in the third quarter of 2022 and unchanged demand fundamentals from the domestic market. The activity in the US Naphthalene market was moderate, and market players enjoyed the summer holiday in the last week of August. Buyers delayed the purchases on an expectation of further negotiations in the commodity market. Besides, several market participants indulged in restocking inventories amidst lower values, and upstream crude oil price volatility provided a significant opportunity to gain substantial netbacks and uncertainty regarding the potential of supply disruption in the US Gulf coast region due to hurricane season in the quarter.
Asia Pacific
During the third quarter of 2022, the Naphthalene market in the Asia Pacific region remained stable, with a negligible rise in this quarter. The Japanese Naphthalene prices were upward this quarter, backed by the high upstream crude oil and energy prices. In addition, market participants faced a shortage of stock availability and a surge in the commodity's market performance. The Naphthalene market in India remained steady amidst the adequate availability of inventories to support the domestic queries for Naphthalene in the domestic market. Meanwhile, port congestion and the COVID-19 lockdown disruptions in China weighed on the Naphthalene consumption in the region.
Europe
The Naphthalene market in the European region was weak due to dampened consumer confidence amidst supply chain disturbances. The crude oil price volatility impacted the market dynamics amidst the ongoing conflict and hampered oil supplies by Russia in the region. Moreover, the congestion at the UK and German port amidst wage disputes led to supply chain disruptions impacting the Naphthalene market. Persistently, the Northwest European region market observed a gyration as the US market participants were restocking the commodity stocks in the region ahead of the hurricane season to keep the supply chain constant.
For the Quarter Ending June 2022
North America
In the second quarter of 2022, the Naphthalene market in the North American region was persistently staggering downwards amidst the slower demand from the domestic and overseas markets. As for light bunker fuel, the domestic marine oil supplies stood at around 170,000 MT in the month, rising by 20,000 MT or 13.33% on a month-on-month basis. From a stocking point of view, the US market players were transferring the shipments, especially to the European region, ahead of the upcoming hurricane season in the US. As a ripple effect, the CFR Houston discussions for Refined Naphthalene were lower at -1.38% on m-o-m in June.
Asia Pacific
During the second quarter of 2022, the Naphthalene market in the Asia Pacific region remained bearish. According to the customs data, the Chinese blenders supplied around 380,000 MT of heavy bunker fuel in total during the last month of the second quarter. As for light bunker fuel, the domestic marine oil supplies stood at around 170,000 MT in the month, rising by 20,000 MT or 13.33% on a month-on-month basis. The Naphthalene market in India remained bearish amidst the inadequate demand to support the domestic quotations for Naphthalene in the domestic market. Since the profit from coking and low sulfur bonded, bunker fuel sectors looked encouraging. Meanwhile, the availability of coal tar was also undercut in the last month.
Europe
As of the second quarter, the Naphthalene market in the European region was staggered with different trends. The eastern part observed a bullish sentiment in the market dynamics amidst the ongoing conflict and imposition of western sanctions on Russia. At the same time, the Northwest European region market observed a persistent gyration as the US market participants were restocking the inventories in the region ahead of the hurricane season to keep the supply chain smooth. In addition, the decision of the German authorities to resume power generation using coal from the fourth quarter of 2022 will open promising futures for the bunker fuel market in the European region.
For the Quarter Ending March 2022
North America
Naphthalene prices remained firm in the North American region during the 1st quarter of 2022 on the back of consistent demand from the downstream plastics, resins, and dyes industries. Besides, consistent rise in crude values in the international market also contributed to the rise in the prices of Naphthalene in North America. Adequate supplies to the domestic market restrained the hike in its values despite of the strong demand throughout the period. Naphthalene values were recorded as USD 2452 per tonne on CFR basis at Houston, USA, in the quarter ending March 2022.
Asia Pacific
Naphthalene prices witnessed an upward trajectory and rose continuously due to the consistent increase in crude oil values in the Asian region during Q1, 2022. The feed crude values rose significantly due to the supply chain disruption impacted by Russia-Ukraine war tensions in March. The demand from the pharmaceutical, textile, and chemical segments remained consistent throughout the period, but the supplies of Naphthalene remained uncertain in the market due to low production rates. In the quarter ending in March 2022, prices of refined Naphthalene were recorded as USD 1250 per tonne on CFR basis in Qingdao China, and USD 1554.24 per tonne in India.
Europe
In Q1-2022, prices of Naphthalene remained strong in the European market due to the shortage in the supply of feedstock crude oil, especially during second half of the first quarter. The crisis in East – Europe due to war tensions between Russia and Ukraine disturbed the supply chains globally. The demand for Naphthalene from the textile sector and chemical industries remained consistent. However, due to low production rates and limited supply of Naphthalene to the downstream sector, prices rose consistently by over 6% in the European market. High freight costs also added numbers to the values of Naphthalene during the first quarter of 2022.
For the Quarter Ending December 2021
North America
In North America, Naphthalene market witnessed a bullish trend throughout the third quarter of 2021 where its prices witnessed significant gains owing to the sturdy demand from downstream Pharmaceuticals, Textile and Chemical sector. Furthermore, exorbitant freight charges and high production cost also influenced the prices of Naphthalene in the region. Hence, Naphthalene Refined CFR Houston prices stood at USD 1307/MT in December experiencing a hike of around 8% since October.
Asia Pacific
In Q4 2021, the prices of Naphthalene were deemed high during the mid of the quarter but gradually stabilized in the last month of quarter however, the overall prices of the product witnessed upward trajectory. In India, a substantial rise in the values of Naphthalene was seen in this quarter. As it is majorly imported from China and Taiwan, its prices witnessed consistent surge due to delayed supplies, as China grappled with low production rates in compliance to the dual energy policy of the government. Additionally, robust demand from the downstream textile manufacturers and firm values of upstream Coal tar also continued to surge its prices. However, in December, a marginal dip in Naphthalene prices was seen due to lull trading and lower buying sentiments because of year end. Hence, Naphthalene Refined Ex-Mumbai prices stood at USD 1424.45/MT in December.
Europe
In Q4, Naphthalene values remained strong in the European countries backed by the lower imports from Asian countries. Naphthalene market sentiments continued to be strong following the trend as other regions as the demand remained sturdy from textile, pharmaceuticals, food, and other sectors throughout the quarter. Additionally, continuously rising freight charges coupled with the acute energy crisis also supported the pricing trend of Naphthalene in the region.
For the Quarter Ending September 2021
North America
The market outlook showcased an upward trajectory in Q3 2021 across the North American region. The prices of Naphthalene witnessed an upwards rally on a steady rise in the prices of downstream Phthalic Anhydride throughout the third quarter. Demand from the downstream derivative manufacturers and the construction industry remained strong throughout Q3. Supply side issues persisted during the latter part of Q3 as hurricane Ida landfall disrupted the supply of upstream coal tar to several refineries on the US gulf coast.
Asia Pacific
The prices of Naphthalene rose effectively in the Asia Pacific region during the 3rd quarter of 2021. In the Indian market, prices continued to trace an upward trajectory buoyed by the soaring freight rates and delayed deliveries from major exporting countries. Ex-Works prices of Naphthalene escalated from USD 1075/MT to USD 1182/MT in Q3 021. In terms of demand, it remained nearly stable in Q3, but limited imports of the product widened the demand and supply gap in the Indian market. CFR Taiwan prices for Naphthalene observed a surge from USD 0.85 to USD 1.05 per kg in the September month.
Europe
In the third quarter of 2021, the demand for downstream Phthalic anhydride remained high from the downstream plasticizers and alkyd paints industries which reduced its ability to the export markets such as Europe. Another critical factor that limited the regional supply was resolutely high cost of shipping and unavailability of Asian containers. Demand for the downstream products that go into the housing sector showed a rise in Q3 2021, for insulation and other construction-related uses. It is anticipated that Naphthalene demand will remain bullish in Q3 with anticipated strength from all sectors in the upcoming quarter.
For the Quarter Ending June 2021
North America
The North American Naphthalene market maintained stability during the second quarter of 2021, as the industrial output picked up after the winter storm Uri disrupted market dynamics. The resumption of several industrial facilities in the USA bolstered the market supplies and hence the pricing trend eased after observing a constant up stride from the downstream Phthalic Anhydride producers. Overall, Naphthalene prices witnessed a slump by USD 90 per tonne FOB Louisiana within the quarter to settle at USD 1205 per tonne in June. Demand outlook remained significantly competitive but improved supply conditions and loose in the shipping freight charges balanced the overall domestic market outlook.
Asia Pacific
In the Asia Pacific region, Naphthalene supplies were balanced to meet the end use demand. The Indian market outlook remained subdued under the impact of second COVID wave in the first half of the quarter, however the market activities picked up during the latter half. India imported a total of 5818 tonnes of Refined Naphthalene, at a decline of 21.17% from imports in the previous quarter. China Steel Chemical Corporation turnout to be the major supplier of Naphthalene in the Indian domestic market. The demand remained balanced from the downstream derivative industries. However, some Indian buyers were reluctant to procure large shipments amidst the ongoing uncertainties in the regional market. Naphthalene pricing trend in India observed a stagnant growth with Ex-Works Mumbai prices trading at USD 1337 per tonne in April.
Europe
Naphthalene supply outlook in the European region improved compared to the previous quarter, as shipments from the US surged due to improved industrial activities in the US Gulf coast. Shipments from Asia producers were delayed due to Suez Canal blockage at the start of the second quarter. Demand was bolstered from the downstream PVC manufacturing facilities as region witnessed strong PVC demand from the building and construction sector. As a ripple effect, Naphthalene prices in the European region surged amidst the strong buying sentiments.
For the Quarter Ending March 2021
North America
During the first quarter, Naphthalene supplies remained tight in the North American region, owing to limited availability of feedstock, as the major petrochemicals units such as that of INEOS, Lanxess, Dow Chemicals, etc., were shut down amid the unprecedented severe freeze weather conditions in the US Gulf region. The demand however, surged from the downstream sectors as the people took a conservative approach regarding the spread of COVID 19. the supply-demand gap widened which supported the regional prices of Naphthalene. Naphthalene FOB Louisiana (US) prices were averaged around USD 1140/ton, showing marked gains over Q4 levels.
Asia-Pacific
Naphthalene supplies in China were tight, leading to reduced overseas shipments as several plants were on turnaround amid the Chinese Lunar New year holidays and offtakes were reportedly lesser. Although the situation balanced out after Taiwan and South Korea increased the shipments of Naphthalene in overseas market in expectation for better netbacks in between supply shortage. In the first quarter the Naphthalene prices in India took an uptrend with quarterly average standing around USD 1127/ton on Ex-Depot basis due to the reduced imports and constant offtakes from the downstream construction sector.
Europe
Naphthalene supplies in the European region remained tight, as the winter season hit the region and several plants in the northwest Europe reduced their production efficiencies due to limited commercial and industrial activities amid the COVID restrictions across Europe. In February, imports from the USA witnessed a steep fall credited to severe freeze conditions in major industrial sites. However, due to the surged demand as the offtakes were improved from construction sector. Consistent demand prompted the producers to raise their prices multiple times within Q1.
For the Quarter Ending December 2020
North America
Naphthalene market reflected mixed results during the fourth quarter. The aftermath of seasonal hurricanes in the US gulf region forced various upstream suppliers to shut down the production with many refineries impending cuts in run rates due to the disruptions in power supply. The demand showed continuous inclination supported by the momentum in buying activity and rebound of the construction sector. The steep increment in the prices was majorly driven by the lack of transporting facility in the sea.
Asia-Pacific
Naphthalene supplies remained healthy in the Asian region, due to the sturdy demand on the back of active buying momentum for the hygienic products due to rising uncertainties regarding the COVID-19 spread. Imports from Europe were majorly affected by the spread of new strain of COVID and fresh lockdown imposed on several European countries. The demand of Naphthalene in India remained firm throughout the quarter due to active restocking by downstream consumers. Surge in crude oil enabled the Indian producers to maintain an average price of USD 1028.15/ton, with margins strengthening by over USD 40/ton in December 2020.
Europe
Product supplies remained firm in the European region, due to strong consumer shift towards hygienic standards due to pandemic which led to bullish buying activity. European Naphthalene exports were severely impacted amid the second lockdown imposed due to the new strain of COIVD-19 followed by the production cuts on the upstream front. Abrupt surge in transportation freights and loss of manpower resulted in snug supply which surged the prices to new highs during the fourth quarter.
