How uplifted Feedstock Market influencing the prices of Global Anisole
- 30-Mar-2022 3:36 PM
- Journalist: Gabreilla Figueroa
The hike in prices of upstream Crude oil backed by the rise in the prices of feedstock Benzene has raised the prices of Anisole. Benzene is the primary feedstock for Anisole and directly influences the supply of Anisole in the Global market since Benzene prices determine the prevailing market dynamics. Anisole is used to manufacture perfumes, dyes, pesticides, and pharmaceutical products.
The ongoing conflict between Russia and Ukraine has squeezed upstream crude oil prices, impacting the current market dynamics, which has resulted in the increased cost of Anisole in the global market. Demand from the Pharmaceutical industries could drive enormous shortages, increase raw material and crude oil prices, freight capacities, resulting in a substantial outcome for the entire supply chain.
In China, the prices of Anisole have increased due to the recent Covid outbreak that led to the lockdown, disrupting the trade activities in Southern regions. The shutdown in Shenzhen has impacted imports and exports, as it is the second-largest port in China. Moreover, the persisting container shortage also resulted in high freight charges. The prices of Anisole FOB Qingdao China were assessed at around USD 4055 Per tonne with a month-on-month 2 % increment in the quarter of March.
As per ChemAnalyst, “The price of Anisole is expected to rise in the forthcoming weeks as the demand from the downstream pharmaceutical industries is not likely to settle shortly. In addition, Upstream crude oil prices will impact Benzene prices in the global market. In addition, high freight charges may tend to rise further due to the shortage in containers, followed by high fuel prices. Thus, the prices of Anisole are likely to increase in the upcoming weeks.