For the Quarter Ending December 2022
North America
In North America, the Alpha Pinene market has shown mixed sentiments throughout the fourth quarter of 2022. The fluctuation in price came due to the changing demand fundamentals from healthcare industries. There were also several other factors ruling the market dynamics of Alpha Pinene in the US market, such as the changing consumers' attitudes, inflationary pressure, and fluctuating currency value. In the meantime, lower orders made it clear that there was much inventory, which kept prices in the local markets low. Furthermore, due to a lack of buying activity, regional prices were maintaining weak pricing trends. In conclusion, Alpha pinene's price in the US market fluctuated throughout the fourth quarter.
APAC
Prices of Alpha Pinene fluctuated in the fourth quarter of 2022, supported by shifting demand-supply fundamentals. Alpha pinene prices increased gradually in the first half of the fourth quarter due to consistently rising utilization rates in downstream pharmaceutical industries. Alpha Pinene-based specialty aroma ingredients and Camphor are the primary products produced by the plant. Producers were observed reducing profit margins in the second half of Q4 as stocks grew To encourage material sales. India imports most of its Alpha pinene from the United States, China, and Indonesia and is the largest importer of Alpha pinene in the world. Thus, supply crunch and currency fluctuation played a major role in deciding the price structure of Alpha Pinene in India.
Europe
Alpha Pinene fluctuated in Europe during the fourth quarter of 2022, following the Asian market's pattern. The manufacturing Purchasing Manager's Index (PMI) fell to 46.4 in October in Europe, where the economy was struggling in the first half of Q4. However, manufacturers were able to deliver the goods on time due to a consistent supply and abundant material availability. Later, in the second half, despite rising production costs, the price slightly increased as energy costs continued to rise. Meanwhile, Camphor, insecticides, solvents, plasticizers, perfumes, and synthetic pine oil have all been in consistent demand from downstream industries throughout the fourth quarter.
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.
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.
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.
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.
