For the Quarter Ending September 2024
North America
In Q3 2024, the Para Phenylene Diamine (PPD) market in North America experienced a notable uptrend in prices, with the USA witnessing the most significant price changes. Various factors contributed to the overall price increase, including disruptions in the global supply chain and heightened import costs. Severe disruptions, such as logistical challenges, played a key role in limiting supply availability and driving prices upwards.
The increased demand from key sectors like automotive and pharmaceuticals further fueled the price surge, with both industries experiencing growth and heightened consumption of PPD. Additionally, fluctuations in production costs, particularly related to feedstock prices, added to the upward pressure on prices.
The USA, in particular, witnessed a substantial 4% price difference between the first and second half of the quarter, reflecting the dynamic nature of the market. Despite a negative percentage change from the previous quarter, the quarter-ending price of USD 3070/MT for PPD CFR Texas in the USA indicated a predominantly positive pricing environment characterized by bullish market sentiments.
APAC
In Q3 2024, the Para Phenylene Diamine (PPD) market in the APAC region experienced a notable increase in prices, with China displaying the most significant fluctuations. This quarter witnessed a surge in PPD prices driven by a combination of factors. Supply chain disruptions, inclement weather conditions, and heightened demand from various sectors contributed to the upward pressure on market prices. Additionally, an imbalance between supply and demand further fueled the price hike. Noteworthy disruptions included severe flooding and delayed shipments. China, in particular, witnessed substantial price changes, reflecting the overall trend in the region. The market displayed a positive sentiment, with prices steadily climbing throughout the quarter. The correlation between the factors influencing price changes was evident, leading to a cohesive upward trajectory in pricing. Despite a slight decrease from the previous quarter, the overall increase from the same quarter last year was significant. The quarter-ending price of USD 2700/MT for 6 PPD FOB Qingdao in China marked the culmination of the price hike, highlighting a robust and bullish pricing environment in the APAC region.
Europe
In Q3 2024, Europe’s Para Phenylene Diamine (PPD) market witnessed a significant price uptrend, driven by several crucial factors that boosted its market value. The increased demand from the downstream Automotive and Tire sectors played a pivotal role in driving market bullishness, as PPD is a key additive in the manufacturing of rubber compounds for tires, aligning with the sector's steady expansion. This surge in demand created strong upward pressure on PPD prices, despite a reduction in production costs attributed to falling Isobutylene prices, a primary feedstock for PPD. However, supply chain disruptions across Europe compounded pricing pressures, adding to the overall challenges faced by market participants. These disruptions, coupled with inadequate inventory levels, resulted in a constrained supply that market players responded to by raising ex-quotations. Many suppliers cited logistical hurdles and insufficient stock availability as driving forces behind these price adjustments, ensuring that price hikes reflected the ongoing challenges in maintaining stable supply levels. By the end of Q3, the PPD market demonstrated resilience amid fluctuations in feedstock costs and ongoing supply chain issues, maintaining a strong upward pricing trajectory across the region.
For the Quarter Ending June 2024
North America
In Q2 2024, the Para Phenylene Diamine (PPD) market in North America exhibited a marked decrease in prices, influenced by several significant factors. A primary driver of this downward trend was the high level of PPD inventories, which exceeded demand from key downstream sectors such as automotive and textiles. Supply chain disruptions, including temporary shutdowns at major production facilities, further exacerbated the situation by creating an imbalance between supply and demand. Additionally, shifts in feedstock markets contributed to fluctuating production costs, while the Aniline market saw a slight decline, the Nitrobenzene market experienced an uptick, adding complexity to cost structures.
In the USA, where price changes were most pronounced, the overall trend was negative throughout the quarter. Despite robust performance in the downstream automotive sector, with increasing vehicle sales, the ample PPD stocks kept demand subdued. Seasonal factors, such as reduced market activity during holiday periods, further dampened business confidence. The correlation between increased inventory levels and sluggish demand resulted in a significant price drop, with a recorded 10% decrease between the first and second halves of the quarter.
Compared to the same quarter last year, the market sentiment remained bearish. The quarter ended with PPD prices at USD 3400/MT CFR Texas in the USA, reflecting a consistently declining sentiment. Overall, the pricing environment was negative, driven by oversupply, fluctuating production costs, and market disruptions.
APAC
In Q2 2024, the Para Phenylene Diamine (PPD) market in the APAC region witnessed a notable decline in prices, driven primarily by subdued demand from the downstream automotive and tire sectors. Elevated inventory levels, coupled with significant market uncertainties, exerted additional downward pressure on PPD prices. Fluctuations in feedstock markets, particularly the divergent trends in Aniline and Nitrobenzene pricing, further compounded production cost variations, impacting overall market sentiment negatively. Focusing on South Korea, the region experienced the most pronounced price shifts. The second quarter revealed a consistent bearish trend in PPD pricing, largely influenced by seasonal demand fluctuations and an imbalance between supply and demand. Additionally, price comparison within the quarter exhibited a 9% decline between the first and second halves, underscoring the continuous weak demand and high inventory levels. Despite some optimism from increased automotive exports, the South Korean market remained predominantly negative. The supply chain disruptions, although not extensive, alongside plant shutdowns, further contributed to the sluggish market. The quarter ended with a price of USD 3260/MT FOB Busan for 6-PPD, reflecting the ongoing negative pricing environment. This downward trend highlights the broader challenges faced by the PPD market in maintaining stability amid fluctuating demand and supply dynamics.
Europe
In Q2 2024, the European Para Phenylene Diamine (PPD) market faced significant upward price pressure, primarily driven by robust demand from downstream sectors, particularly the automotive industry. This surge in demand was exacerbated by ongoing disruptions in the supply chain, which included geopolitical tensions and logistical challenges such as the Red Sea Crisis. The crisis had a profound impact on global logistics, leading to increased import costs and delays that severely tightened the PPD supply in Europe. As a result, market participants experienced heightened costs and supply constraints, contributing to the upward pressure on prices. The automotive sector's strong demand for PPD further fueled the bullish market trend. Compounding these issues were local disruptions within Europe, including protests that caused transportation blockages and adverse weather conditions that interrupted supply chains. These factors, combined with seasonal elements like holidays and festivals in key exporting regions, led to further constraints in PPD supply. Increased import activities were necessary to meet the rising demand, yet the logistical and supply chain challenges continued to influence price volatility. As a result, the European PPD market experienced a pronounced upward trend in prices throughout the quarter, reflecting the interplay of heightened demand, supply disruptions, and increased production costs.
For the Quarter Ending March 2024
North America
In Q1 2024, the Para Phenylene Diamine (PPD) market in North America witnessed a positive pricing environment, with significant factors influencing market prices. The USA, in particular, experienced the maximum price changes. Several factors contributed to the incline in PPD prices. Firstly, the demand from the downstream automotive sectors was high, resulting in increased consumption of existing inventory levels. This led to a deficiency in the stocks and an incline in the rate of production. Additionally, the increase in transportation costs, caused by the redirection of shipments due to the Red Sea crisis, added to the overall cost of the product.
Furthermore, the bullish market sentiment was influenced by the low inventory levels and the decline in prices of PPD's feedstock, Aniline. This lowered the production cost of PPD, putting further downward pressure on prices, however, due to the strong demand, the prices of PPD experienced an incline in their trend.
In terms of overall trends and seasonality, the PPD market experienced an incline compared to the same quarter last year. In conclusion, the Q1 2024 pricing environment for PPD in North America, specifically in the USA, was positive. The market faced challenges due to strong demand, low inventory levels, and increased transportation costs.
APAC
The first quarter of 2024 has been a mixed period for Para Phenylene Diamine (PPD) prices in the APAC region. While some countries experienced slightly positive trends, South Korea saw significant price changes. Overall, the market situation for PPD in South Korea has been bullish, with supply levels ranging from low to moderate. The demand from the downstream automotive and tire sectors was strong resulting in increased consumption rates of existing inventories. The supply tightening has been attributed to factors such as production stoppages, reduced working days due to holidays, and delayed government subsidies for electric vehicle sales. In terms of supply, the existing inventory levels have been insufficient to fulfill demand, leading to low supply levels. Additionally, the export sales of PPD from South Korea have increased, indicating a higher demand from overseas markets. However, the price trend for PPD in South Korea has been bearish, with a decline of 1.90% in February 2024 compared to the previous month. This can be attributed to the low demand and ample supply in the market. The prices of PPD in South Korea were bullish in Q1 of 2024 as compared to the previous quarter, with an incline of 14.64%. Overall, the pricing environment for PPD in the APAC region during Q1 2024 has been bullish, with strong demand, inadequate supply, and inclining prices in South Korea.
Europe
In the first quarter of 2024, the pricing landscape for Para Phenylene Diamine (PPD) in Europe exhibited a bullish trend, shaped by several key factors impacting the market dynamics. Among these factors were the demand stemming from the downstream Automotive sector, the levels of available inventory, and the prices of raw materials. Throughout Q1 2024, the prices of PPD consistently rose, a trend primarily fueled by the strong demand originating from the Automotive sector and the status of inventory levels. Notably, the demand for passenger cars experienced a substantial surge, marked by a significant year-on-year increase. Experts attribute this surge to the widespread availability of discounts and promotional offers, prompting consumers to expedite their purchasing decisions in anticipation of potential price hikes for imported vehicles from countries within the Eurasian Economic Union (EAEU). Analysts further suggest that this heightened demand for passenger cars contributed significantly to the upward trajectory of PPD prices. Overall, the pricing environment for PPD in Europe during Q1 2024 was characterized by an upward trend with minimal fluctuations. The market was predominantly driven by the robust demand originating from the Automotive sector and the consistent availability of inventory levels in storage units, reflecting a bullish scenario for PPD prices in the region.
For the Quarter Ending December 2023
North America
In Q4 2023, the North American market for Para Phenylene Diamine (PPD) experienced several significant factors that impacted prices. Firstly, there was a high demand for PPD from the downstream automotive sectors, leading to increased consumption and the need for restocking. This elevated demand, combined with limited supplies from China, resulted in a tightening of PPD inventories in the USA. Suppliers responded to these market conditions by raising their quotations, thereby pushing prices higher. Additionally, the prices of PPD's feedstock, Aniline, and Nitrobenzene, increased, contributing to the overall upward price trend. It is important to note that no plant shutdowns were recorded during this quarter.
In the USA, which experienced the most significant price changes, PPD prices increased by 10% in November, however, declined in December 2023, a decline of 1.2% was recorded due to the lower demand from the downstream automotive industries and the increase of 6-PPD inventory levels. Due to the disruption caused by the Yemen-based Houthi attack in the Red Sea, shipments of goods from South Korea to the USA experienced delays. To navigate the situation, ships were redirected around the Cape of Good Hope, resulting in an additional 9-10 days for the shipments. Along with the sufficient inventory level of 6-PPD in the storage facilities, the price of its upstream Aniline market was recorded to be declining. This resulted in lower operational costs for 6-PPD, contributing to the downward price trend. The market players became anxious and started providing discounts on bulk purchases to attract buyers to clear out their existing inventory levels.
In conclusion, the price trend for PPD in the USA remained bullish throughout the quarter, driven by the robust market fundamentals. The latest Para Phenylene Diamine prices for 6 PPD CFR Texas in the USA at the end of the quarter was USD 3280/MT. Overall, this quarter saw a positive price movement for PPD in the North American market, driven by strong demand and limited supplies.
APAC
The fourth quarter of 2023 was characterized by a bullish market for Para Phenylene Diamine (PPD) in the APAC region. The supply of PPD was low, leading to a shortage and strong demand from downstream industries. This resulted in enhanced profit margins and revenue for PPD producers. The demand from the downstream automotive sectors was high, prompting producers to increase production rates. There were no reported plant shutdowns during this quarter. Among the countries in the APAC region, South Korea witnessed significant changes in PPD prices. The prices of PPD in South Korea showed an upward trend, with an increase of 4.10% compared to the previous quarter. The strong demand from the downstream automotive industry, coupled with low supplies, contributed to this price increase. Additionally, the prices of the feedstocks for PPD, Aniline, and Nitrobenzene, had contrasting trends, with Aniline prices declining and Nitrobenzene prices inclining. In terms of price comparison, the current quarter's price of PPD in South Korea, which is USD 2800/MT (FOB Busan), increased by 9% compared to the same quarter in the previous year. However, there was no significant difference in price between the first and second half of the quarter. Overall, the bullish market conditions, low supply, and high demand from downstream industries were the primary factors driving the price trend of PPD in the APAC region, particularly in South Korea. The latest price of PPD in South Korea for the current quarter is USD 2800/MT (FOB Busan).
Europe
In the fourth quarter of 2023, the prices of 6-PPD showcased a bullish trend throughout the quarter. There was a shortage of 6-PPD supplies as the existing stock couldn't meet the increasing demand from the automotive industries. Given the market conditions, producers increased the commodity's production rate to meet the rising demand from the downstream automotive sector. Despite rising prices due to increased quotations from traders as they were trying to improve their marginal profits along with the sales, buyers escalated purchasing activities to cope with the demand. The heightened demand from downstream automotive industries led to increased trade to fulfill market needs. Elevated trade activities between major manufacturing units stemmed from low inventories and heightened demand from downstream automotive enterprises. The market was further impacted by increased freight charges attributed to rising fuel transportation costs adding up to the overall prices of the commodity. The consumption of the existing inventories was done at a higher rate due to which the need to restock them again was created.
For the Quarter Ending September 2023
North America
During the 3rd quarter of 2023, Para Phenylene Diamine (PPD) showcased a bearish price trend. This price trend was primarily driven by a weakening in the demand from the downstream Dyes and Cosmetics enterprises. Additionally, traders refused their offers and bids to improve their profit margins due to the weak trend in the spot market and instead provided discounts to the buyers on the bulk purchases of the commodity. At the same time, adequate supplies from China played a significant role in pulling down the price trend for PPD. In addition, the decline in the prices of the raw materials Aniline and Nitrobenzene has further supported the overall market trend, and the production rate was reduced by the producers to avoid the oversupplies of PPD. The feeble demand from the downstream Dyes and Cosmetics enterprises left sufficient supplies in inventories, resulting in the declined price trend of the commodity. The consumption of the existing inventories was done at a slower rate due to which the need to restock them again was not needed. Therefore, the no. of cargo from China to the USA decreased as well.
Asia Pacific
The market price trend of Para Phenylene Diamine (PPD) declined in the 3rd quarter of 2023 and reached USD 2560/MT (FOB-Qingdao). Considering the market situation, the exporters declined their quotations so that the inventories could be cleared out for the upcoming fresh stocks. Simultaneously, the price trend of feedstocks Aniline and Nitrobenzene declined as well due to the low demand from the downstream Dyes and Cosmetics markets. The downward movement in the price trend of the commodity is mainly due to the adequate supply of the product to the market and feeble demand from the domestic market, for which the production rate was decreased by the producers. Domestic buyers are avoiding purchasing the product based on the declining demand from the downstream Hair Dyes and Cosmetics markets. The operating rate for the commodity declined as well, supporting the price trend of the commodity. The spread between the end products and their feedstocks was less, which represents the bearish market situation for the commodity.
Europe
In the European market, the price trend of Para Phenylene Diamine (PPD) declined during the 3rd quarter ending on September 2023. The decline in the prices of its upstream Aniline and Nitrobenzene market has negatively impacted the market value of PPD. The production costs for manufacturing PPD have also significantly decreased and are one of the factors for the decreased prices of the commodity. Due to the falling demand from the downstream Hair Dyes and Cosmetics sector, the consumption of the existing inventories in the storage units declined. As a result of sufficient inventories, the suppliers declined their offers and bids to improve their profit margins and instead provided discounts to the buyers on bulk purchases to clear out the inventories for the upcoming fresh stocks. The demand for the product from the downstream Hair Dyes and Cosmetics sector was compensated by the existing inventories in the storage units with no need to restock the commodity. Due to the sufficient stocks, the production rate of the commodity was reduced to avoid the oversupplies of the product.
