For the Quarter Ending December 2024
North America
In Q4 2024, the Para-Phenylene Diamine (PPD) market in the North American region experienced a consistent bearish trend driven by weak demand, excess inventory, and cautious market behavior. Despite declining feedstock costs, including reductions in Nitrobenzene and Aniline prices, market participants faced limited new orders and a slowdown in production. The automotive sector showed some improvement, but this was insufficient to offset the broader market weakness, particularly from the tire sector.
The uncertainty surrounding the upcoming presidential election, along with concerns over trade policies, further dampened market sentiment, leading to a cautious wait-and-see approach among buyers. Export prices from key suppliers like China and South Korea also declined, contributing to the downward pressure on prices. Additionally, destocking activities during year-end further suppressed demand.
Throughout the quarter, ample inventory levels and weak downstream demand, especially from the automotive and tire sectors, reinforced the bearish market sentiment. By December, market players lowered their price expectations in response to ongoing economic uncertainties, reduced new order intake, and fluctuating import costs, keeping the overall market environment subdued.
APAC
In Q4 2024, the Para-Phenylene Diamine (PPD) market in the APAC region experienced consistent bearish trends driven by weak demand, excess inventory, and declining production costs. Despite a reduction in feedstock prices, including Nitrobenzene and Aniline, the market witnessed limited demand both domestically and from international markets. The downstream automotive sector showed some signs of stabilization, but sluggish demand from heavily indebted consumers overshadowed any positive momentum. The Bank of Korea's interest rate cuts aimed at boosting consumption did not significantly alleviate market concerns. Additionally, geopolitical factors, such as political turmoil and weakening consumer confidence due to the martial law decree, contributed to pessimism in the market. The weakening of the South Korean Won further compounded these challenges. With inventory levels sufficient to meet subdued demand, new orders continued to decline, and business confidence remained low. Manufacturers adjusted production rates in response to the prevailing market conditions, which included reduced exports to key markets like the US. These factors led to a continued bearish outlook for the PPD market in South Korea, with cautious market behavior and a downward price trajectory.
Europe
In Q4 2024, the Para-Phenylene Diamine (PPD) market in Europe was marked by persistent bearish trends, driven by weak demand, surplus inventory, and fluctuating feedstock costs such as Nitrobenzene and Aniline. Despite some volatility in production costs, demand for the commodity remained limited both in domestic and international markets. The European market faced additional pressure from a record-high 21% interest rate, which raised concerns about borrowing costs and hindered business investment. At the end of the quarter, while the downstream automotive sector showed some improvement, it was not enough to offset the broader decline in market activity. The approach to year-end destocking further exacerbated the weak demand, as buyers remained cautious in their procurement decisions. A broader decline in employment and business confidence compounded the situation, signaling an overall lack of optimism in the market. The combination of economic uncertainty, high borrowing costs, and cautious market behavior contributed to a sustained bearish sentiment in the PPD market throughout the quarter, with limited prospects for recovery.
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.
