For the Quarter Ending September 2022
North America
In North America, the price of Alpha Pinene fluctuated throughout the Q3 of 2022, supported by erratic buying sentiments and disrupted supply trends on the local market. With the start of the second month of Q3, prices fell because of lowering demand in the US. Furthermore, rising raw material costs and inflationary pressure remained a significant concern for manufacturers. At the same time, the domestic market's demand for Alpha Pinene from the pharma sector kept declining, and the price pressure on production dropped as raw materials also slowed.
Asia Pacific
In India, Alpha Pinene prices fluctuated throughout the third quarter, supported by the changing demand-supply fundamentals. Alpha Pinene is mainly sourced by India's aromatics and fragrance downstream industry. Prices of Alpha Pinene have witnessed a gradual increment in the first half of the third quarter on the back of the consistent rise in utilization rates. As the freight charges have primarily increased due to port congestion across Southeast Asia, Alpha Pinene prices have risen continuously. Therefore, in July, Alpha Pinene's price increased and hovered around INR 395500/MT Ex-Mumbai and INR 333410/MT CFR JNPT, respectively.
Europe
In Europe, the price of Alpha Pinene fluctuated throughout the Q3 of 2022 due to instability in market dynamics. In the first half of Q3, prices were rising. Prices dropped as Q3's second month got underway due to low offtakes from the downstream pharma sector. Additionally, there was a declining market trend for Alpha Pinene. In response, the region observed a significant supply-demand imbalance since the second quarter, besides showcasing no sign of recovery in the short term. Sentiments for supply in the Eurozone were silent as river rhine started drying up due to the heat waves.
For the Quarter Ending June 2022
North America
Alpha Pinene prices increased in North America during the second quarter of 2022 due to its robust offtakes from end-use industries. Alpha Pinene finds its application in the pharmaceutical sector as it is an anti-inflammatory agent and could impact diseases such as arthritis, Crohn's disease, and Multiple Sclerosis. Rosemary and Satureja myrtifolia oil also contain Alpha Pinene. Despite ongoing supply interruption, the demand from the downstream pharmaceutical sector continued to rise. Later, increased freight costs and port congestion also impacted the price increase, which was further supported by the unavailability of raw materials from the Asian countries due to trade disruption.
APAC
In APAC, the Indian market witnessed an increasing price trend for Alpha Pinene throughout the second quarter due to the rising demand from end-use industries. Alpha Pinene's offtakes from the pharma sector were high this quarter because of its anti-inflammatory benefits. Alpha Pinene is also utilized as an essential oil in the fragrance industry. Therefore, amidst the rising viral infections in the Asia-pacific region, demand for alpha-pinene rose due to its primary application. The rise in cost was also attributed to the supply disruption caused earlier due to the Russia-Ukraine war and the lockdown in some provinces of China, hampering the supply of the product and its raw material to the domestic and overseas markets.
Europe
Alpha Pinene prices were observed rising throughout the second quarter of 2022. These price changes were mainly due to the trade disruption arising from the Russia-Ukraine war. Meanwhile, demand for the product from the pharmaceutical industry remained robust throughout the considered quarter. The majority of coniferous tree oil contains Alpha Pinene. Additionally, it can be found in Satureja myrtifolia and rosemary essential oils. Therefore, its demand remains high in the fragrance industry. Meanwhile, the short supply of raw materials from Asian countries led to the unavailability of materials in the regional market, culminating in the soaring price of Alpha Pinene in European countries.
For the Quarter Ending March 2022
North America
In North America, demand for oil-based cosmetics and ointments in the pharmaceutical industry rose in the first quarter leading to the rise in the price of Alpha-Pinene in the regional market. Compared to the last quarter, the market for Alpha-Pinene saw an increment in prices in this quarter, backed by the unavailability of the material. In contrast, the demand from the downstream pharmaceutical industry remained uplifted amidst continuous supply disruption. Later, port congestion and high freight charges also contributed to the escalated price hike. Therefore, with the rise in values of Alpha-Pinene, its prices settled at USD 2540/MT in North America.
Asia Pacific
In India, prices of Alpha Pinene rose in the first quarter owing to the rise in the demand from the pharmaceutical sector. Alpha Pinene demand is high in the pharma sector as it has anti-inflammatory benefits. It is also used as an essential oil in the fragrance industry. Therefore, amidst the rise in viral infections in the Asia-pacific region, especially China, demands for Alpha-Pinene increased due to its application. Alpha Pinene market is expected to rise in China backed by the high demand from consumer’s end. The rise in cost was also attributed to the supply disruption caused earlier due to the Russia-Ukraine war, followed by the lockdown in some provinces of China, hampering the supply of the product to the overseas market. Therefore, the prices for Alpha Pinene in the Asia-Pacific region rose and settled at USD 2740/MT in March.
Europe
In Europe, the market for Alpha Pinene rose throughout the first quarter owing to the supply disruption caused due to the rising conflict with Russia-Ukraine which hampered the availability of the product in the regional market. The demand from the downstream sector appeared strong. However, the manufacturers faced a shortage of raw materials to fulfil their domestic requirements amidst the supply tightness and rising freight on product shipments. Later port congestion and rising transportation cost have added to the rising price of Alpha Pinene in the European market. Thus, the price for Alpha Pinene hovered around USD 2610/MT in March in Germany.
For the quarter ending December 2021
Alpha Pinene market showcased improvement in last quarter as the predicted demand of essential Oil based cosmetics and ointments in pharmaceutical industry was high during winters. Increasing freight cost across major trade routes including Asia resulted into slight increase in raw material prices in Q4 comparing with Q3 2021. Marginal price escalation was observed due to expansion in retail market of end products in the final quarter. Moreover, the demand from other North American downstream pharmaceutical sector remained high, while the supply was adequate throughout the quarter.
High demand of Alpha Pinene led to an increase in prices in the final quarter of 2021. Prices of Alpha Pinene in India rose from 2873.33 USD/MT to 3032.33 USD per MT by the end of December. Expansion of pharmaceutical market in Asia during winters led significant price escalation in final quarter of 2021. Furthermore, in Asian countries, the demand of Alpha Pinene was on higher side & supply of Alpha Pinene was moderate because of pre predicted demand & adequate supply of end product. However, energy crisis in China and rising production cost remained a major factor behind these price revisions.
The overall condition of European market was not good. Switzerland based major player highlighted that labour shortages caused low production and less imports of raw materials from China in 2021. Increased demand of downstream industries like pharmaceutical sector and cosmetics during winter with inadequate supply of raw material resulted in demand-supply gap. Consequently, prices of Alpha Pinene were on higher side in last quarter of 2021, while traders heard battling with low margins. In addition, soaring energy cost in the regional market also remained a major factor behind diminishing margin.
