For the Quarter Ending September 2024
North America
In the third quarter of 2024, Nitrobenzene prices in North America displayed a mixed pattern, driven by solid demand from the pharmaceutical and agrochemical sectors. The upward pressure on prices was primarily influenced by rising raw material costs, particularly for benzene, due to geopolitical tensions and ongoing supply chain disruptions. These factors contributed to price increases across the region throughout the quarter.
Despite this, the market faced significant challenges, including an oversupply in some segments and competitive pricing strategies from key suppliers, which moderated the overall price growth. Nitrobenzene, in particular, showed a positive year-on-year price trend, although prices peaked in early September before experiencing a slight decline by the end of the quarter.
Overall, North America's Nitrobenzene market remained resilient, with stable demand driving recovery and maintaining a positive pricing sentiment. While short-term fluctuations occurred, prices remained higher than in the same period the previous year, reflecting the ongoing recovery and strong market fundamentals that shaped the quarter’s outcome.
APAC
In Q3 2024, Nitrobenzene experienced a mixed trend in prices across the APAC region, primarily driven by heightened demand in the pharmaceutical and agrochemical sectors. Several key factors influenced these market price hikes, including increased raw material costs, particularly those of benzene, stemming from geopolitical tensions and supply chain disruptions. Additionally, seasonal demand upticks due to monsoon intensified the price escalation. Despite these upward pressures, the market faced challenges such as oversupply in certain segments and aggressive pricing strategies by Chinese suppliers, which moderated the overall price rise. Focusing on Japan, which saw the most significant price changes, the overall pricing trend for Nitrobenzene has been mixed. The price assessed at the end of the quarter remained 19% higher than the price assessed last year indicating year-on-year growth in Nitrobenzene prices, especially in Nitrobenzene, however the prices began their recovery in second quarter from the price of FOB Osaka assessed around USD 1530/MT on 29th September 2024. The prices dropped by 1% cumulatively in Q3 2024. This quarter's pricing environment has been predominantly positive, marked by recovery and strong demand dynamics, despite some offsetting factors, establishing a stable yet ascendant market sentiment.
Europe
In Q3 2024, Nitrobenzene prices in Europe exhibited a mixed trend, influenced by a combination of strong demand and external market factors. The pharmaceutical and agrochemical sectors continued to drive demand, contributing to upward pressure on prices. Additionally, raw material costs, particularly for benzene, remained elevated due to geopolitical tensions and persistent supply chain disruptions. These factors played a significant role in pushing prices higher during the quarter. However, the market also faced notable challenges. An oversupply in certain segments, along with aggressive pricing strategies by some key suppliers, created downward pressure that tempered the overall price increase. Despite these headwinds, the pricing trend for Nitrobenzene remained positive year-on-year. Prices, which had peaked in early September, showed signs of stabilization towards the end of Q3 2024, with a slight cumulative decline. Nevertheless, the overall pricing environment in Europe remained favorable. Strong demand fundamentals, coupled with recovering market conditions, ensured that the quarter ended on a positive note, with prices higher than the previous year's levels, despite short-term fluctuations.
For the Quarter Ending June 2024
North America
The North American Nitrobenzene market exhibited a mixed pricing structure in Q2 2024, influenced by a confluence of countervailing factors. While a decrease in feedstock costs, particularly Benzene, initially exerted downward pressure on Nitrobenzene pricing, a concurrent rise in sulfuric acid costs, attributable to geopolitical tensions, counterbalanced this effect. Further exacerbating price volatility were supply constraints arising from production facility shutdowns. Geopolitical uncertainties and the impending hurricane season compounded these supply chain disruptions, intensifying cost pressures. Additionally, downstream industries, such as MDI producers, engaged in significant forward buying and inventory accumulation in response to elevated crude and natural gas prices, further impacting market dynamics.
Focusing on the United States, which witnessed the most pronounced price fluctuations, the overall Nitrobenzene pricing trajectory demonstrated a bimodal distribution. The first half of the quarter remained relatively stable, followed by a pronounced upward trend in the latter half. Seasonal factors, such as the surge in demand associated with Memorial Day, coupled with strategic stockpiling activities, contributed to this bullish price movement.
In conclusion, the prevailing pricing environment for Nitrobenzene has been largely positive, driven by robust demand, constrained supply, and escalating feedstock costs. These factors collectively contribute to an increasingly optimistic market sentiment, characterized by expectations of continued price increases
APAC
The second quarter of 2024 has seen a moderate increment in Nitro Benzene prices across the APAC region, driven by several influential factors. The market dynamics have been primarily shaped by currency fluctuations, rising raw material costs, and a robust demand from downstream industries including pharmaceuticals and construction materials. The availability of key feedstocks like Benzene and Nitric acid has been a recurring challenge, exerting upward pressure on market prices. Additionally, heightened freight costs and logistical bottlenecks have further compounded the situation, leading to tighter supply chains and escalating prices. In Japan, the pricing environment has been particularly dynamic, with the country experiencing the most significant price movements. Seasonal trends have played a crucial role, with demands spiking due to increased construction activities and heightened export orders. This quarter exhibited a pronounced price sensitivity compared to the same period last year, reflecting a substantial 39% increase, as Asian markets previously de-stocked significant volumes out as global demand fell. Interestingly, the average prices have seen a 6% decline from the previous quarter, suggesting a complex interplay of supply constraints and stabilizing factors in the short term. Furthermore, Q2 showed the first half having higher upward price movement at faster pace than the latter half, underscoring the that markets were in the initial days of Q2 were more optimistic. This pricing trend is indicative of a positive environment, despite occasional stabilization phases. The latest quarter-ending price for Nitrobenzene CFR Kobe in Japan stands at USD 1590/MT, consolidating the overall increasing sentiment in the market. The robust demand, coupled with supply chain challenges and raw material cost pressures, has perpetuated a bullish outlook for Nitrobenzene prices throughout Q2 2024.
Europe
The European Nitrobenzene market experienced significant price fluctuations throughout Q2 2024, influenced by a complex interplay of opposing forces. Initially, a decline in feedstock costs, particularly Benzene, exerted downward pressure on Nitrobenzene prices. However, this trend was countered by a concurrent rise in sulfuric acid costs, primarily driven by geopolitical tensions. Further factors complicating the market dynamics were supply constraints stemming from production facility shutdowns. Geopolitical uncertainties and the anticipation of a disruptive hurricane season exacerbated these supply chain disruptions, leading to intensified cost pressures. Additionally, downstream industries, particularly MDI producers, engaged in substantial forward buying and inventory accumulation in response to rising crude oil and natural gas prices. This strategic behavior further impacted market stability. Europe, in particular, witnessed the most pronounced price variations. The overall pricing trajectory exhibited a bimodal distribution, with relative stability characterizing the first half of the quarter followed by a sharp upward trend in the latter half. This bullish price movement was driven by a confluence of factors. Firstly, seasonal factors, such as the surge in demand associated with the recovery in construction and automotive sectors, played a role. The increasing focus on sustainability within these industries, coupled with the higher demand for MDI (a key Nitrobenzene derivative), contributed to this demand surge. Secondly, strategic stockpiling activities by market participants further fueled the upward price movement. In conclusion, the dominant sentiment surrounding Nitrobenzene pricing in Europe remains largely positive. This optimism stems from a combination of factors, including robust demand across various sectors, constrained supply due to production issues and geopolitical uncertainties, and escalating feedstock costs. These elements collectively contribute to an increasingly bullish market outlook, with expectations of continued price increases in the foreseeable future.
For the Quarter Ending March 2024
North America
Prices of Nitrobenzene in North America turned bullish in the first quarter of 2024 owing to easing of downturns and cooling off of contracts for energy and gas supply. Pricing insights and data US reveals significant improvement in prices were observed from January as benzene supply contracts turn higher by 5% Q-o-Q basis with spot prices recovering after downturns in the industrial production eased by February as temperatures rose.
Supply of Nitrobenzene largely remain domestic into North American markets with Korea being the major suppliers from overseas. Downturns in MDI production eased with newer orders for isocyanates in North America improving as inventory pressure enlarged. Newer contracts for energy supply beginning January 2024 show significant reduction in premiums offered as gas prices remained relatively lower than historical averages in the spot markets as gas inventories remained on the higher end. Eastman’s major Nitrobenzene plant in US began operating at higher volumes by the second month of the quarter as supply lines for Benzene prices further tightened due to Arctic blast in the month of February. With prices recovering due to elevated prices, exports of Nitrobenzene to Germany and Belgium due to easing of downturns in European production, though German domestic demand remained subdued.
Overall, Prices showed strong recovery after weak Q4FY23-24, inventory adjustments and subdued consumption due to higher interest rates and downturns in automobile and construction demand in USA. Prices are expected to settle down as shipping to go offseason in the next quarter intensifying inventory pressure in domestic as well as export market coupled with chances of rate cuts and markets adjusting their inventories and jump to spot markets for higher deliveries.
Europe
Prices of Nitrobenzene in Europe turned bullish in the first quarter of FY24-25 owing to easing of downturns and cooling off of contracts for energy and gas supply. Pricing insights and data from Germany reveals significant improvement in prices were observed from January as benzene supply contracts turn higher by 8% Q-o-Q basis with spot prices recovering after downturns in the industrial production eased by February as temperatures rose.
Supply of Nitrobenzene largely remain imported into European markets with Japan, Korea and US being the major suppliers. Downturns in MDI production eased with newer orders for isocyanates in Europe improving as inventory pressure enlarged. Newer contracts for energy supply beginning January 2024 show significant reduction in premiums offered as gas prices remained relatively lower than historical averages in the spot markets as gas inventories remained on the higher end. Eastman’s major Nitrobenzene plant in UK began operating at higher volumes by the second month of the quarter as supply lines for Benzene from Netherlands settled. With easing energy cost, imports of Benzene from Netherlands and Belgium improved in Germany, though German domestic demand remained subdued.
Overall, Prices showed strong recovery after weak Q4FY23-24, inventory adjustments and subdued consumption due to higher interest rates. With England leading a strong discounted market for mortgages, Netherlands, Italy and France followed the suit and stimulated their construction sector, though downturns and demand for construction chemicals like Polyurethanes remained lower than historical averages, pending orders have declined significantly.
Asia Pacific
The first quarter of 2024 has been a mixed period for Nitrobenzene pricing in the APAC region. Market prices have seen a significant increase, with a 16% rise compared to the same quarter last year, and by the end of the quarter, a decline of 12% was observed. Japan has experienced the most notable price changes in the region. Overall trends in the Japanese market have been influenced by seasonality and other factors including Lunar New year festivities and Noto Earthquake supply line disruption. The price change from the previous quarter reflects that the quarter end bullish sentiment offset the February slump in prices. Compared YoY basis, prices remained 27% higher due to costlier inputs.
The latest quarter-ending price for Nitrobenzene in Japan was recorded at USD 1530/MT CFR Kobe. This price indicates a positive pricing environment, as it marks a significant increase due to quarter end bullish run observed across the Japanese market, with prices of Aniline contracts remained significantly higher due to high Nitrobenzene prices, which Asian suppliers in East Asia decided to stay away from contracts and undertake spot procurements leading to significant downturns and frequent revisions in Nitro benzene and Aniline prices.
In summary, the first quarter of 2024 has been a period of mixed sentiments for Nitrobenzene in the APAC region. Japan has experienced the most significant price changes, with a positive pricing environment overall triumphing the slump observed in the Late February and early March. The market has been influenced by seasonality and other factors, leading to stable pricing trends.
For the Quarter Ending December 2023
North America
Prices of Nitrobenzene showed bearish sentiment in Q4FY23 with respect to nitrobenzene. Feedstock Benzene largely provided negative cost coupled with weak energy prices in the given quarter amidst excellent US domestic crude and gas production. Supply largely remained domestic with substantial imports from Korea and Japan. Construction related demand remained subdued with pending orders piling up although new procurement for Nitrobenzene derived MDI showed uptick largely from commercial construction sector.
Agrochemical demand remained stable, gradually slowing down throughout the quarter largely owing to excellent cropping season. Consumer demand, especially pharmaceuticals, remained strong amidst resilient consumer spending and rising healthcare costs. Inflations Reductions Act driven sustainable energy transition policy in USA drove the polyurethane market to significant extent. Residential Construction chemical markets are showing gradual signs of recovery with improving purchases for Nitrobenzene derivatives, although the effect on prices remained weak.
Automotive and Polymer markets remained other major drivers for nitrobenzene derivatives volume. Japan and Korean markets continued to be the largest suppliers of Nitrobenzene to North American markets Festivities and pent-up demand coupled with previous quarters delivery made the nitrobenzene market strong in the current quarter. By the end of the quarter, prices started stabilizing amidst falling newer orders due to high CIF and CFR charges due to container and shipping shortages largely due to Panama and Suez Crisis.
Asia Pacific
Prices of Nitrobenzene showed bullish sentiment in Q4FY23 with respect to nitrobenzene. Feedstock Benzene largely provided negative cost coupled with weak energy prices in the given quarter amidst excellent US domestic crude and gas production. Supply largely remained domestic with substantial imports from Korea and Japan. Construction related demand remained subdued with pending orders piling up although new procurement for Nitrobenzene derived MDI showed uptick largely from commercial construction sector. Agrochemical demand remained stable, gradually slowing down throughout the quarter largely owing to excellent cropping season. Pharmaceuticals remained strong amidst resilient consumer spending and rising healthcare costs, largely driven by challenges arising from newer lung infection. Demand for heat insulation and refurbishments continue to rise in Korean and Japanese markets amidst government approved schemes to transition into energy efficient complexes. Residential Construction chemical markets are showing gradual signs of recovery with improving purchases for Nitrobenzene derivatives, although the effect on prices remained weak. Automotive and Polymer markets remained other major drivers for nitrobenzene derivatives volume. Japan and Korean markets continued to be the largest suppliers of Nitrobenzene to North American markets Festivities and pent-up demand coupled with previous quarters delivery made the nitrobenzene market strong in the current quarter. By the end of the quarter, prices started stabilizing amidst falling newer orders due to high CIF and CFR charges due to container and shipping shortages largely due to Panama and Suez Crisis.
Europe
Prices of Nitrobenzene showed bearish sentiment in Q4FY23 with respect to nitrobenzene. Feedstock Benzene largely provided negative cost coupled with weak energy prices in the given quarter amidst excellent US domestic crude and gas production. Supply largely remained substantial imports from Korea and Japan. Construction related demand remained subdued with pending orders piling up although new procurement for Nitrobenzene derived MDI showed uptick largely from commercial construction sector. Agrochemical demand remained stable, gradually slowing down throughout the quarter largely owing to excellent cropping season. Consumer demand, especially pharmaceuticals, remained subdued amidst weak consumer spending and rising healthcare costs. EU policy on transition to sustainable energy continues to drive the polyurethane market to significant extent. Residential Construction chemical markets are showing gradual signs of recovery with improving purchases for Nitrobenzene derivatives, although the effect on prices remained weak in Netherlands, Italy and UK. Automotive and Polymer markets remained other major drivers for nitrobenzene derivatives volume. Japan and Korean markets continued to be the largest suppliers of Nitrobenzene to North American markets Festivities and pent-up demand coupled with previous quarters delivery made the nitrobenzene relatively strong in the current quarter despite setbacks from high interest rates. By the end of the quarter, prices started stabilizing amidst falling newer orders due to high CIF and CFR charges due to container and shipping shortages largely due to Panama and Suez Crisis.
