For the Quarter Ending September 2024
North America
In Q3 2024, Nitro Chlorobenzene (NCB) 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 and chlorine, 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. Para-NCB, 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 NCB 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, Nitro Chlorobenzene (NCB) 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 and chlorine, 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 para-NCB has been mixed. The price assessed at the end of the quarter remained 13% higher than the price assessed last year indicating year-on-year growth in Nitro chlorobenzene prices, especially in p-Nitro chlorobenzene, however the prices began their recovery in second quarter from the price of EXW Qingdao assessed around USD 1100/MT on 29th September 2024. The prices dropped by 1% cumulatively in Q3 2024.
The pricing data show that prices peaked in early September of Q3 2024. Concluding the quarter, the price of p-Nitro Chlorobenzene in EXW Osaka USD 1130/MT. 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, Nitro Chlorobenzene (NCB) 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 and chlorine, remained elevated due to geopolitical tensions and persistent supply chain disruptions. These factors played a significant role in pushing prices higher throughout 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 para-NCB 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 Nitro Chlorobenzene 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 Nitro chlorobenzene 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 pharmaceuticals and agrochemical 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 Nitro chlorobenzene 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 Nitro chlorobenzene 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 increase.
APAC
In Q2 2024, Nitro Chlorobenzene (NCB) 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 and chlorine, stemming from geopolitical tensions and supply chain disruptions. Additionally, seasonal demand upticks due to pre-monsoon stocking 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 para-NCB has been mixed. The correlation between increased demand for agrochemical intermediates and pharmaceutical applications, alongside the country’s strategic pre-monsoon inventory build-up, was evident in the first half of the quarter. From the beginning of the year, the prices fell by 6.7%, reflecting a deflationary trend, however the prices began their recovery in second quarter from the price of FOB Osaka assessed around USD 1070/MT, in the first week of April 2024. The pricing data show that prices surged at faster pace in the first half over the second half of Q2 2024. Concluding the quarter, the price of p-Nitro Chlorobenzene -FOB Osaka in Japan stood at USD 1190/MT. 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
The European Nitro chlorobenzene 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 Nitro chlorobenzene prices. Further complicating the market dynamics were supply constraints stemming from production facility shutdowns. Geopolitical uncertainties and the anticipation of extended warm season exacerbated these supply chain disruptions, leading to intensified cost pressures. Additionally, downstream industries, particularly agrochemicals and pharmaceutical 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 pharmaceuticals and de-coupling from Chinese imports contributed to this demand surge. Secondly, strategic stockpiling activities by market participants further fueled the upward price movement. In conclusion, the dominant sentiment surrounding Nitro chlorobenzene 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
North American relies heavily on imports for Para-Nitro chlorobenzene, with Japan and Korea being the main suppliers. The decline in S-Metolachlor usage led to a plunge in new orders for Para-Nitro chlorobenzene, resulting in excess inventory. Additionally, new energy supply contracts starting in January offered lower premiums due to relatively low gas prices and high gas inventories.
In the first quarter of 2024, Para-Nitro chlorobenzene prices in North American dropped significantly due to impending bans on S-Metolachlor, a weedkiller that uses Para-Nitro chlorobenzene as a raw material. Data of USA, shows a steep decline in prices starting from January. This coincided with an 8% increase in benzene supply contracts compared to the previous quarter. Spot prices for benzene also recovered in February as industrial production picked up with rising temperatures.
Despite the overall bearish trend, there are some signs of recovery. Demand for Para-Nitro chlorobenzene in North American dye production is increasing as energy costs ease. US saw an improvement in Benzene supply in the first half of the quarter but tightening in the second half, but domestic demand within US remained weak. Overall, Para-Nitro chlorobenzene prices continued to decline after a weak fourth quarter in FY23-24. This was driven by inventory adjustments, subdued consumption due to high interest rates, and discounted markets in USA and Mexico. However, demand for dyes and other chemicals that use Para-Nitro chlorobenzene remains lower than historical averages, and new orders have fallen considerably.
Europe
Prices of Para-Nitro chlorobenzene in Europe turned bearish in the first quarter of FY24-25 owing to further bans on S-Metolachlor approaching. Pricing insights and data from Germany reveals significant decline 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 Para-Nitro chlorobenzene largely remain imported into European markets with Japan, Korea. Downturns in agrochemical production intensified with newer orders for Nitro chlorobenzene in Europe plunging 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. Nitro chlorobenzene demand for dyes and other dyestuff production in Europe is showing recovery with easing energy cost, imports of Benzene from Netherlands and Belgium improved in Germany, though German domestic demand remained subdued.
Overall, Prices showed continued subduction after weak Q4FY23-24, inventory adjustments and subdued consumption due to higher interest rates. With England leading a strong discounted market for consumption, Netherlands, Italy and France followed the suit and stimulated their domestic consumption, though downturns and demand for dyes chemicals like nitro chlorobenzene remained lower than historical averages, pending orders have declined significantly.
Asia Pacific
The first quarter of 2024 has been bullish for Para-Nitro chlorobenzene pricing in the APAC region. Market prices have seen a significant decline, with a 14% drop compared to the same quarter last year, and by the end of the quarter, price stabilized. 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 bearish sentiment offset the February slump in prices. Compared to the YoY basis, prices remained 10% lower due to significant deflation in agrochemical markets.
The latest quarter-ending price for Para-Nitro chlorobenzene in Japan was recorded at USD 1160/MT FOB Qingdao. This price indicates a stabilization in price movements with the arrest of price decline, as it marks a significant increase due to quarter end bearish run observed across the Japanese market, with prices of chlorobenzene contracts remained significantly lower due to low Para-Nitro chlorobenzene 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 chlorobenzene prices.
In summary, the first quarter of 2024 has been a period of bearish sentiments for Para-Nitro chlorobenzene in the APAC region. Japan has experienced the most significant price changes, with a negative 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 Nitro chlorobenzene showed bullish sentiment in Q4FY23 with respect to para-nitro chlorobenzene. 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 import dominated with the downstream dyes and pigment industry showing signs of recovery amidst improvement in consumer sentiments and stable demand from automotive industries. Agrochemical demand remained stable, gradually slowing down throughout the quarter largely owing to excellent cropping season. In the month of October, US consumer sales registered strong growth amidst pent-up demand and falling mortgage and inflation rates which remained resilient while weakening little in the month of December. Dyes market showed improvement largely driving the nitro chlorobenzene prices.
Construction chemical markets are showing gradual signs of recovery with improving purchases for Nitro chlorobenzene derivatives, although the effect on prices remained weak. Automotive and Polymer markets remained other major drivers for para-nitro chlorobenzene derivatives volume apart from apparels to show increased orders. Chinese and Korean markets continued to be the largest suppliers of Nitro chlorobenzene to North American markets Festivities and pent-up demand coupled with previous quarters delivery made the nitro chlorobenzene 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 Nitro chlorobenzene showed bullish sentiment in Q4FY23 with respect to para-nitro chlorobenzene. Feedstock prices continued to support positive cash flow to the suppliers. Supply largely remained domestic with the downstream dyes and pigment industry showing signs of recovery amidst improvement in manufacturing in the downstream markets with China leading the region. Agrochemical demand remained stable, gradually slowing down throughout the quarter largely owing to excellent cropping season. Dyes market showed improvement largely driving the nitro chlorobenzene prices. Construction chemical markets are showing gradual signs of recovery with improving purchases for Nitro chlorobenzene derivatives, although the effect on prices remained weak. Automotive and Polymer markets remained other major drivers for para-nitro chlorobenzene derivatives volume apart from apparels to show increased orders. Chinese and Korean markets continued to be the largest suppliers of Nitro chlorobenzene to North American markets. Domestic demand in China and Korean markets remained subdued largely owing to financial debts and real estate challenges. With Chinese government continuing to provide stimulus, demand for Nitro chlorobenzene from construction and consumer markets in domestic territory is showing signs of recoveries. Lunar New Year festivities in the coming February is currently guiding significant rise in procurement from textiles, apparel markets for nitro chlorobenzene derivatives and increased wages in Korean markets are currently major drivers for dyes, pigments demand from automotive markets. 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 Nitro chlorobenzene showed bearish sentiment in Q4FY23 with respect to para-nitro chlorobenzene. Feedstock Benzene largely provided negative cost coupled with weak energy prices in the given quarter amidst excellent US domestic crude and gas production despite OPEC+ supply cuts. Supply largely remained import dominated with the downstream dyes and pigment industry remaining subdued with falling demand from automotive industries. Agrochemical demand remained stable, gradually slowing down throughout the quarter largely owing to excellent cropping season. Eurozone continues to face demand slump amidst high interest rates, although consumer demand for nitro chlorobenzene derived dyes markets showed uptick in Italian and Dutch markets largely owing to stable inflation. Dyes market showed improvement largely driving the nitro chlorobenzene prices. Construction chemical markets are showing gradual signs of recovery with improving purchases for Nitro chlorobenzene derivatives, although the effect on prices remained weak. Automotive and Polymer markets remained other major drivers for para-nitro chlorobenzene derivatives volumes. Chinese and Korean markets continued to be the largest suppliers of Nitro chlorobenzene to North American markets Festivities and pent-up demand coupled with previous quarters delivery made the nitro chlorobenzene 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.
For the Quarter Ending September 2023
North America
Prices of Nitro chlorobenzene showed a mixed trend in Q3 FY 2023 on the back of a bullish trend in the pricing of feedstocks Benzene. Energy prices also showed a bullish trend due to OPEC+ triggered crude price rise. In July, market sentiments continued to remain bearish as Chinese demand remained weak in the region with feedstock spot prices showing similar trend. Furthermore, OPEC+ continual extension of production cut triggered rising prices in petrochemical feedstock Benzene. Supply of feedstock largely remained imported with substantial increase in domestic supply. Demand for Nitro chlorobenzene especially from rubber chemicals, plastics and dyes showed improvement from August 2023 as aggressive procurement and price rises by domestic suppliers pulled up the prices as stimulus announcements were made. Downstream pigment/paint market continues to remain weak, restocking of Nitro chlorobenzene in anticipation of better growth continues to keep the Nitro chlorobenzene market bullish. Demand from other sectors like textile for dyes gradually improved as economic stimulus by the government showed increased sales volume of textiles despite rising prices. Furthermore, Chinese continued to increase their domestic Benzene volumes have gradually started to supply the global markets. Energy prices continue to stay inflated in the Asia pacific region forcing producers to transfer cost faster than other regional players due to reliance on crude and feedstock from US, Middle East etc. With forecast showing global slump in demand, oversupply situation is expected and prices are expected to decline and stabilize in the long run.
Asia Pacific
Prices of Nitro chlorobenzene showed a mixed trend in Q3 FY 2023 on the back of a bullish trend in the pricing of feedstocks Benzene. Energy prices also showed a bullish trend due to OPEC+ triggered crude price rise. In July, market sentiments continued to remain bearish as Chinese demand remained weak in the region with feedstock spot prices showing similar trend. Furthermore, OPEC+ continual extension of production cut triggered rising prices in petrochemical feedstock Benzene. Supply of feedstock largely remained imported with substantial increase in domestic supply. Demand for Nitro chlorobenzene especially from rubber chemicals, plastics and dyes showed improvement from August 2023 as aggressive procurement and price rises by domestic suppliers pulled up the prices as stimulus announcements were made. Downstream pigment/paint market continues to remain weak, restocking of Nitro chlorobenzene in anticipation of better growth continues to keep the Nitro chlorobenzene market bullish. Demand from other sectors like textile for dyes gradually improved as economic stimulus by the government showed increased sales volume of textiles despite rising prices. Furthermore, Chinese continued to increase their domestic Benzene volumes have gradually started to supply the global markets. Energy prices continue to stay inflated in the Asia pacific region forcing producers to transfer cost faster than other regional players due to reliance on crude and feedstock from US, Middle East etc. With forecast showing global slump in demand, oversupply situation is expected and prices are expected to decline and stabilize in the long run.
Europe
Prices of Nitro chlorobenzene showed a mixed trend in Q3 FY 2023. Prices observed a strong bearish trend in the month of July followed by a weak recovery in the prices in the consecutive months. July saw a declining trend largely on the account of declining prices of import from Europe as prices continued to deflate as prices of energy deflated. In August, OPEC+ continual extension of production cut triggered rising prices in petrochemical feedstock Toluene. Supply of feedstock largely remained domestic Demand for Nitro chlorobenzene especially from plastics showed marked decline from August 2023 as construction sector continued to disappoint. Interest rates continue to rise, forcing people to postpone purchases leading to rising inventory of stocks. As downstream polyurethane market continues to remain weak, major destocking of older stocks occurred in the market. Prices continue to remain firm as marginal demand from automotive and renewable energy sector. Q3 FY23 was characterized by weak and stable prices
For the Quarter Ending June 2023
North America
In Q2 2023, the US Nitro Chloro Benzene market witnessed a varied performance. Demand remained stable from the downstream solvent industry, providing a degree of support for the product. However, lackluster consumption from the dyes and explosives industry during the first half of the quarter posed challenges. The subdued demand was likely influenced by economic conditions and market dynamics. Nevertheless, there was a notable recovery in volumes and consumption rates in the second half, driven by improved performance in the construction industry, leading to increased Nitro Chloro Benzene demand for related applications. Despite these positive developments, the market faced obstacles. Weak cost support from upstream Benzene was a concern as WTI crude oil prices consistently declined in Q2 despite OPEC production cuts. This impacted the cost structure of Benzene, affecting overall profitability and pricing dynamics for US Nitro Chloro Benzene. Additionally, the freight market experienced a decline on both East and West coasts as trading activities slowed down in the US, easing shipping costs. After Q2 2023 ended, Nitro Chloro Benzene prices in the US were assessed at USD 2800 per MT on a FOB basis.
APAC
The prices of Nitro Chloro Benzene (NCB) in Japan have been on a downward trend since the beginning of Q2 2023. The main reasons for this decline are the weak demand from downstream industries and the depreciation of the Japanese yen. In the second quarter of 2023, the market for Japan Nitro Chloro Benzene witnessed a fluctuating trend. Prices of the product followed a bearish trajectory, declining consistently in the last few weeks of June. This decline was mainly due to limited changes in feedstock sentiments in the Asian region, which impacted the final prices negatively. Additionally, there were limited to no procurements in the last week of June, contributing to the overall price decrease of 4.3% on a weekly basis. Demand sentiments for Nitro Chloro Benzene remained stable during the quarter, but there was a noticeable drop in consumption from downstream industries in the first half. However, the situation improved towards the second half of the quarter as the performance of the construction industry picked up, leading to increased demand. After the conclusion of Q2 2023, Nitro Chloro Benzene prices in Japan were assessed at USD 1135 per MT on a FOB basis.
Europe
During Q2 2023, the European Nitro Chloro Benzene market encountered a diverse demand landscape. The downstream solvent industry exhibited stable demand, providing a degree of support for the product. However, consumption from the dyes and explosives industry remained dull. This subdued performance was attributed to the underwhelming construction and mining sectors, as highlighted in LANXESS's quarterly report. Factors such as high inflation rates, declining demand, and weak cost support from upstream Benzene, influenced by consistently declining Brent crude oil prices, contributed to the challenges faced by European Nitro Chloro Benzene. In addition, the freight market witnessed a decline throughout the second quarter due to the slowdown in trading activities in Europe. Consequently, shipping costs eased, and cheaper imports from the Asian market became more readily available, intensifying the competition. In June 2023, Nitro Chloro Benzene prices in Europe were assessed at USD 2755 per MT on an FD basis.
For the Quarter Ending March 2023
North America
The prices of Nitro Chloro Benzene elevated in the American market during Q1,2023. An increase in demand for Nitro Chlorobenzene in the Chinese market elevated the cost of the product impacting the inventory of feedstock Chlorobenzene in the region. This led to a rise in the prices of Nitrochloro Benzene along with a rise in production cost and a rise in feedstock Chlorobenzene market prices. Shortage in the supply of Nitro Chlorobenzene to traders and merchants impacted the Petrochemicals market. A rise in demand for the product due to an increase in end-use applications, such as in the fertilizer industry, leads to higher prices.
Asia
The market value of Nitro Chloro Benzene elevated in the Asian market during Q1,2023. A rise in demand for Nitro Chlorobenzene on the Chinese market drove up the price of the substance, which affected the region's supply of feedstock. This caused the price of Nitro Chloro Benzene to increase, as well as the cost of production and the market price of the feedstock chlorobenzene. The Petrochemicals market was hit by a shortage in the supply of Nitro Chlorobenzene to traders and merchants. The supply of Nitro Chloro Benzene fell back from the demand, which led the prices to fall as producers tried to sell off their excess inventory.
Europe
The prices of Nitro Chloro Benzene plummeted in the European market during the first quarter of 2023—the inventories of the product escalated in the European market with increasing stocks of raw material Chlorobenzene. The freight charges were falling as per the quotations given by the traders and the merchants. Decrease in demand for Nitro Chlorobenzene for the manufacturing of packaging and textiles-based materials in the region. Variations in the prices of Crude oil from which Benzene is derived relieved the cost of the petrochemical derivatives in the region. The inventory of Nitro Chlorobenzene escalated in the German market due to less procurement of downstream petrochemical derivatives.
For the Quarter Ending December 2022
North America
The fourth quarter of 2022 witnessed mixed market sentiments of Nitro Chloro Benzene in the North American market due to changes in downstream demand from the chemical, rubber, and oil additives industries. Due to the inconsistent expansion of downstream industries throughout the course of the quarter, the demand for Nitro Chloro Benzene from various segments of the domestic market remained uncertain. Additionally, unpredictable production and upstream costs influenced the Nitro Chloro Benzene industry. The price trend for Nitro Chloro Benzene, therefore, decreased in October, increased in November, and then plummeted once more in December. In the United States, Nitro Chloro Benzene was assessed to be worth USD 1320/MT CFR Texas in December.
APAC
Nitro Chloro Benzene prices in the Asia-Pacific market steadily reduced in the fourth quarter of 2022 due to weak downstream demand and declining upstream costs. The demand for Nitro Chloro Benzene decreased during the quarter as the downstream rubber, chemical, and oil additive sectors underperformed in terms of output and market performance. Additionally, when energy prices declined over time, Nitro Chloro Benzene's production costs were also reduced, which ultimately resulted in a decline in the market value of the commodity. As a result, Nitro Chloro Benzene was evaluated at USD 1283/MT FOB Qingdao for the month of December.
Europe
Amidst fluctuations in downstream demand from the chemical, rubber, and oil additives sectors, the European market for Nitro Chloro Benzene had mixed market sentiments in the fourth quarter of 2022. The demand for Nitro Chloro Benzene from different domestic market segments remained unsure due to the uneven growth of downstream businesses throughout the course of the quarter. The inconsistency of the Nitro Chloro Benzene sector was also driven by erratic output and upstream expenses. As a result, the price trend for Nitro Chloro Benzene dropped in October, rose in November, and then fell again in December. Nitro Chloro Benzene's value in Germany was estimated to be USD 1240/MT CFR Hamburg in December.
For the Quarter Ending September 2022
North America
North American market witnessed mixed sentiments for Nitro Chloro Benzene (NCB) throughout the quarter owing to changing market dynamics every month. As per the market sources, demand from the domestic market remained modest to stable while changing imports fluctuated the overall market dynamics. Dyes & pigments and the pharma sector in the USA performed dull throughout Q3 2022. Meanwhile, the looming threat of recessionary conditions kept its hold on overall market movement. Additionally, it was observed that rising gasoline and diesel prices affected domestic freight costs and compelled traders to revise their offers in order to maintain their profitability. Nevertheless, declined global freight charges counterbalanced the overall pricing dynamics for the product in the US market.
Asia
A steep decline in the price of NCB was observed for the Japanese market during this quarter, owing to slashed demand from the domestic downstream sectors amidst ample product availability in the country. Furthermore, Japanese convertors tried to maintain their international offtakes by offering discounts on spot purchases, while Japanese Yen depreciation against opportune them to practice these market tactics. The price of Ortho Nitro Chloro Benzene and Para Nitro Chloro Benzene in Japan hovered around USD 1030/MT and 1490/MT during September 2022. On the other side, prices for ONCB and PNCB kept on slipping throughout the quarter in China and South Korea due to similar market fundamentals.
Europe
Rising input costs amidst wavering offtakes injected mixed market sentiments in the European market during this quarter. As per the market sources, demand fundamentals for the product started wavering off by the second half of the quarter, which has been hardly maintaining stability for months. Furthermore, cheaper imports played an important role in tapering commodity prices in the European market in the meantime. However, disturbances in trade activities due to the rhine river and rising gasoline value were counterbalanced by declining international freight charges. Additionally, the threat of high natural gas value appeared to vanish as the government was making all the possible arrangements to stock enough gas in the country.
For the Quarter Ending June 2022
North America
During the second quarter of 2022, the price of Nitro Chloro Benzene rose in the US market. Following the upstream Benzene price trend, the Nitro Chloro Benzene market also witnessed a rise. The soaring upstream Crude price due to the poor availability of the product in the US market inflated the values of its downstream derivatives. The surging demand for Nitro Chloro Benzene due to its wide use in producing downstream dyes, pigments, rubber, and chemicals has resulted in the increasing price trend of Nitro Chloro Benzene. Furthermore, the skyrocketing freight charges have also influenced the manufacturers to increase their offers.
APAC
Nitro Chloro Benzene market showcased an oscillating trend in the Indian market. Initially, the price increased in April due to the healthy buying sentiments in the local and regional markets. The demand for the commodity was at its peak because of the poor availability of the product. Therefore, in May, the price of Nitro Chloro Benzene dropped due to the plummeting raw material prices. Despite the western sanctions, India and China imported a large quantity of Upstream Crude from Russia at a discounted price. Thus, the price of Nitro Chloro Benzene also fell in the Indian market. Again in June, the Nitro Chloro Benzene market gained strength owing to the growing demand from the downstream construction, chemical, and automotive sectors.
Europe
In the quarter ending June 2022, the Nitro Chloro Benzene market witnessed an uptrend. The continuation of the geopolitical tension that started in late Q1 has wreaked havoc European region. The sanctions on importing Russian oil cargoes have resulted in a tight product supply. Due to the poor upstream crude availability, the production of feedstock Benzene was affected, inflating the Nitro Chloro Benzene pricing. Furthermore, the strong buying sentiments from the downstream rubber and chemical manufacturers owing to the healthy consumer demands also ushered in the price hike of Nitro Chloro Benzene. Moreover, the limited availability of the product and increased demand from the domestic and regional markets have been triggering the Nitro Chloro Benzene pricing.
For the Quarter Ending March 2022
North America
During the first quarter of 2022, the Nitro Chloro Benzene market showcased marginal upward trajectory movement. Rising upstream crude prices and feedstock benzene, nitric acid, and sulphuric acid prices simultaneously caused the Nitro Chloro Benzene prices to hike. Rise in demand for the downstream agrochemicals, paints, and dyes maintained sustainable offtakes for Nitro Chloro Benzene in Q1. In addition, rise in freight charges prompted manufacturers to revise the prices so that their profit margins are not affected. Moreover, the tension between Russia and Ukraine added fuel by rerouting the shipments which resulted in the delay in supply of the products.
Asia Pacific
Nitro Chloro Benzene prices witnessed mixed sentiment during the first quarter of 2022. The prices showed a downfall from January due to improved inventory levels after the new year break. Prices dropped by around 0.9% in February. Later, prices increased in lieu of tension between Russia and Ukraine which significantly impacted feedstock Benzene prices, influencing complete Nitro Chloro Benzene market. The demand for Nitro Chloro Benzene from regional and international markets rose as it is majorly utilized in the agrochemical industry. Moreover, soaring fuel prices affected the freight charges, resulting in price hikes. As a result, Nitro Chloro Benzene prices in India settled at USD 2516 per MT Ex-Mumbai in March.
Europe
In the first quarter of 2022, Nitro Chloro Benzene market observed an uptrend in Europe. COVID resurgence and transport restrictions in Germany during early Q1 caused the prices to rise. The price rise was owed to the surge in upstream crude and feedstock benzene prices due to the escalated tension in the Russia-Ukraine war. The rise in crude values influenced fuel prices, further affecting the freight charges. The conflict between Russia and Ukraine affected the trade activities, causing a delay in the supply of products.
For the Quarter Ending December 2021
North America
In North America, Nitro Chlorobenzene prices witnessed an upward trend during the fourth quarter of 2021. Firm upstream Benzene prices and sturdy demand from the downstream manufacturers including dyes, drugs, and agrochemicals had kept the pricing trend optimistic in this quarter. Moreover, exorbitant freight charges and increasing prices of the product in China also contributed to the price rises in the US market as US imports a significant amount of its total imported NCB from China. However, NCB prices eased in November followed by sufficient supplies and relaxation in feedstock Benzene values. In December NCB values again rose significantly backed by improvement in the offtakes by the local buyers. In addition, the cost support from the upstream Benzene soared as well as strengthened the will of producers to raise the quotations for Nitro-Chloro-Benzene in the last month of the quarter.
Asia
In Q4 2021, dented supply chains continued to weigh over the Asian NCB market thus the producers had kept their offers raised throughout the quarter. In China, unprecedented power crisis due to coal shortage, surging raw material cost and robust demand from the downstream manufacturers resulted in a persistent rise in NCB prices. Thus, Para Nitro Chlorobenzene FOB Qingdao prices were assessed at USD 2960 per MT in December observing a hike of USD 360/MT since October. In India, the NCB market showcased mixed sentiments in the fourth quarter of the year. Nitro Chlorobenzene prices witnessed fluctuations depending upon demand-supply dynamics coupled with the upstream Benzene values. NCB prices surged significantly from October to November due to firm offtakes from the domestic as well as international markets. Hinderance in the production activities in China because of the energy crisis coupled with a shortage of feedstock Benzene had shifted the demand for NCB to Indian manufacturers that aided the pricing trend of NCB in India. However, in December, NCB prices eased in the Indian market due to lull trade activities and lower buying momentum because of year end.
Hence, Ex-Mumbai Para-Nitro Chlorobenzene prices dropped to USD 2609 per MT from USD 2688.05/MT in the timeframe of November to December.
Europe
In the fourth quarter of 2021, Nitro Chlorobenzene market sentiments appeared to be bullish backed by robust demand from downstream pharmaceutical and Agrochemical sectors and tight supplies that led to the inflation in NCB prices across the European market. In addition, the domestic and overseas inquiries for NCB also soared in this timeframe as the downstream and other traders were persistently procuring the product under the threat of possible lockdowns amid a rising number of coronavirus cases in the region. Moreover, fluctuations in crude oil discussions had translated into the pricing trend of NCB in the region. Hence, Nitro Chlorobenzene prices had observed an uptrend in Q4.
For the Quarter Ending September 2021
North America
Nitro Chlorobenzene market outlook showcased a marginal hike during the third quarter in the North America. In the mid quarter, arrival of Ida hurricane in the Gulf Coast of the USA led to the closure of several production facilities, and oil and gas refineries which resulted into the scarcity of the feedstock thus, escalated the values of Nitro Chlorobenzene in this timeframe. Hurricane Ida also disrupted the supply chains that also impacted the imports from the Asian countries. However, the demand from downstream industries including Dyes, Rubber, Agrochemicals and Pharmaceuticals remained firm throughout the quarter which also aided its pricing trend.
Asia
In Q3 2021, a consistent rise in the pricing trend of Nitro Chlorobenzene was witnessed in the Asian markets. In Chinese market, the production and supply chains remained dented that kept the NCB offers high in this quarter. Some of major factors involved were curtailment in the production levels on the back of energy crisis as well as the congestion on several ports in China that caused supply chain disruption. Para-Nitro Chlorobenzene FOB Qingdao (China) monthly average price stood at 2319/MT in September, observing a hike of USD 127/MT since July. In India, NCB prices encountered a steep climb backed by the high demand from various end use industries coupled with the upsurge in the feedstock Chlorobenzene prices. Furthermore, exorbitant freight charges and delayed cargoes also supported the pricing trend of Nitro Chlorobenzene in India. Ex-Mumbai Para-Nitro Chlorobenzene prices settled at USD 2415 in September showcased a significant rise in this quarter.
Europe
In Europe, Nitro Chlorobenzene market witnessed an upward rally during the third quarter owing to the firm demand from the downstream manufacturers. Moreover, spike in the feedstock values in effect of the volatility in prices of crude oil directly influenced the prices of NCB during this quarter. Moreover, halted imports owing to the supply chain disruption as a result of various factors including impact of Ida hurricane, congestion on several ports of China and limited availability of shipping containers. In addition, expensive production cost due to upsurge in the energy cost also sent ripples to the values of Nitro Chlorobenzene in third quarter 2021.
