Rising Prices of Benzyl Chloride Impact Indian Industries Due to Increasing Downstream Demand
- 26-May-2023 4:36 PM
- Journalist: Shiba Teramoto
A wide range of industries in India, including those involved in alcohol production and the paints and coatings sector, have observed a significant rise in the prices of Benzyl Chloride. This surge has necessitated an increased utilization of Benzyl Chloride within the region. Despite the decline in freight charges for transportation from East Asia to Europe, this reduction has had minimal impact on the overall market value of Benzyl Chloride.
The market value of Benzyl Chloride increased in the Indian market at USD 1504/ton CFR JNPT as per ChemAnalyst Research Team Data. This price hike has led to greater utilization of Benzyl Chloride in the region. The demand from importing USA, Italy, Turkey, and Brazil rose as the downstream dyes, plasticizers, and lubricants market increased in those regions.
The supply chain situation in the Indian market can be described as moderate, and it impacted the inventory levels of Benzyl Chloride. Additionally, the all-cargo logistics sector witnessed a growth of 3.9%, while the overall logistics Industry recorded a 2% increase. The Indian market witnessed a notable escalation in the market value of Benzyl Chloride because of heightened operating rates and an increase in labor costs.
Consequently, the inventories of Benzyl Chloride have been depleted as the product's consumption in the local market continues to grow. The demand for dyes and pharmaceuticals has experienced a notable increase, thereby exerting pressure on the specialty chemicals sector within the region. Moreover, the inventories of the product have remained low due to the escalating consumption of the product in the local market. The push dynamic observed in the costs of Benzoyl Chloride in the Indian market is caused due to rise in utility and demand of the product, which exceeded the supply by a huge margin. The procurement of Benzyl Chloride from dyes, plasticizers, and cosmetics increased, putting demand pressure on the market cost of the product.