Increased Demand in Asia-Pacific Region Impacted Nitro Chloro Benzene Prices to Rise Marginally
- 06-Apr-2022 4:49 PM
- Journalist: Jung Hoon
Nitro Chloro Benzene prices have witnessed a marginal price rise in the previous week owing to rising demand from downstream industries in the Asian market. Nitro Chloro Benzene is widely used as an intermediate to produce chemicals in fertilizer, dyes, paints, and coatings.
Nitro Chloro Benzene and its derivatives are one of the primary raw materials used in the manufacturing of the most frequently used generic medicine Paracetamol. However, the growing demand for chemical and pharmaceutical industries laid the foundation for the Asia Pacific region to dominate the global market. India is the third-largest pharmaceutical producer in the world; hence the demand spike from the worldwide market has increased the price of Nitro Chloro Benzene.
East Asian countries showcased a positive agricultural outlook which is another key factor that contributed to the Nitro Cholro Benzene market to grow. Furthermore, because of its solvent qualities, Nitro Chloro Benzene is used in the manufacturing of pesticides and fertilizers in the end-use agriculture industry. Besides, the expansion of the construction and textile industry augmented the growth of paint & coatings and dyes, respectively, which had a significant impact on the price of Nitro Chloro Benzene. Henceforth, by the 1st of April, the cost of Nitro Chloro Benzene in China had settled at USD 2780 per tonne FOB Qingdao.
In addition, shifting upstream crude prices had an impact on the feedstock Benzene, causing the price of Benzene to skyrocket. As a result, the market for Nitro Chloro Benzene was impacted by feedstock Benzene prices. Moreover, China's transportation restrictions and trade disruptions fuelled the price change in the regional market.
As per ChemAnalyst, "Nitro Chloro Benzene pricing is expected to climb in the coming weeks due to the growing demand from end-use industries. The agriculture, pharmaceutical and construction industries are expected to increase their consumption keeping the firm pricing sentiment in the market. The rising price of upstream crude oil may also force the Nitro Chloro Benzene market to move upward."