How Anisole Market Has been Gain Stability in Asia
- 25-May-2022 4:35 PM
- Journalist: Jacob Kutchner
Mumbai, India: As demand dynamics for various commodities are on a high note, global inflation and escalating raw material costs have been a major source of concern for global key players. ChemAnalyst examined anisole pricing patterns in the Asian market and discovered that prices have stabilised and are likely to rise slowly but steadily in the coming months.
According to the latest ChemAnalyst sources, many Asian economies had shown marginal increases by the middle of May, with the exception of India, where prices continued to fall. Furthermore, lower downstream demand, particularly from the perfume and agrochemical industries, has dragged down Anisole prices in the Indian market. Apart from demand and low raw material costs, notably, Phenol, is the other factor that pressures Anisole prices.
As per the latest insights, Indian traders are still providing discount on bulk purchasing while carrying stockpiled inventories. In addition, price volatility in India was caused by persistent disruptions in the Chinese market. As a result, Anisole prices dropped by 1-2 percent in the preceding week.
However, due to the volatility in crude prices and the stability in feedstock values, Anisole prices in the Chinese market have remained stable. According to ChemAnalyst data, the cost of Phenol, a key raw material for Anisole, increased somewhat by 0.3 percent to 1.2 percent in the week ending May 20th.
Furthermore, the Anisole supply in China remained consistent. The anisole market has remained stable due to consistent demand from downstream sectors, and current inventories were sufficient to meet demand. However, Chinese producers attempted to raise prices in order to maintain their profits, but they were unable to do so due to the lavish supply of the material. In addition, considerable discounts on bulk purchases for regular buyers should alleviate Anisole prices, although spot buyers will be bruised by the market's uneven distribution.
ChemAnalyst assesses that "the price of Anisole is projected to be increased in the Asian market under the influence of rising raw material cost. Meanwhile, the demand from the downstream sectors, especially from the Agrochemical sectors, is likely to be improved in the forthcoming weeks".