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Global Dinitrochlorobenzene Likely to Surge in November Amid Positive Market Sentiments
Global Dinitrochlorobenzene Likely to Surge in November Amid Positive Market Sentiments

Global Dinitrochlorobenzene Likely to Surge in November Amid Positive Market Sentiments

  • 23-Nov-2023 5:23 PM
  • Journalist: Gabreilla Figueroa

Dinitrochlorobenzene (DNCB) prices are expected to rise globally in November 2023, aligning with the trajectory observed in the previous month. This can be attributed to increased demand from end-users, a rise in raw material prices, and restricted stock availability among manufacturers and traders in the market. DNCB finds significant utility in industrial processes, notably in the synthesis of azo dyes and as a reagent in immunology and research. The heightened demand for azo dyes across various sectors, such as textiles, plastics, and printing, is expected to contribute to the escalation of DNCB prices.

The ascending trend in DNCB prices is primarily underpinned by the escalation in the prices of key raw materials, namely sulphuric acid and nitric acid, in November. The nitric acid market experienced tight supplies in the Chinese domestic market, and demand from sectors such as pesticides remained at a moderate level, contributing to the overall increase in DNCB prices. Similarly, mainstream domestic sulfuric acid manufacturers witnessed a moderate price increase during the first half of the month, coupled with average inventory levels. Also, the downstream market showed a slight uptick, with downstream customers displaying enthusiasm for purchasing sulfuric acid. With various positive factors at play, the sulfuric acid market observed a significant rise, consequently exerting a positive impact on the DNCB market.

In China, the manufacturing sector is anticipated to face additional challenges in the fourth quarter as most factories aim to conclude their operations by year-end. This situation is poised to result in diminished production and restricted stocks in the market, potentially leading to an upward trajectory in DNCB prices. Manufacturers have observed heightened prices for raw materials and oil, contributing to a surge in the rate of input inflation to a nine-month peak, thereby potentially impacting the DNCB market. Additionally, the introduction of new products and increased consumer demand, both domestically and internationally, is expected to foster growth, sustaining a favorable market environment for DNCB.

A comparable pattern in DNCB prices is anticipated in the European market. The trend in inflation within the Eurozone is deemed "favorable," with both headline inflation and core inflation experiencing significant declines in recent times. If the European Central Bank (ECB) opts to keep interest rates unchanged, inflation is expected to decrease further in November. This potential decline in inflation could stimulate consumer spending, consequently contributing to an upswing in DNCB prices.

In India, the manufacturing sector has demonstrated substantial growth, according to the latest data, even amid a challenging global economic environment. The trade figures in India for October, reflecting a 6.2% increase with early indications from the first week of November, point to robust sales growth in international markets. Companies reporting an increase in new orders from overseas have noted gains from regions such as Asia, Europe, the Middle East, and the US, potentially contributing to the upward movement of DNCB prices.

According to ChemAnalyst's analysis, the prices of DNCB are anticipated to decrease by the end of the year due to a decline in demand from end-user industries such as textiles and dyes, coupled with ample supply in the market. However, there is a potential for prices to surge again at the beginning of the new fiscal year with an increase in consumer spending, maintaining an overall positive market sentiment.

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