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
North America
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.
Asia
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.
Europe
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.
The overall market outlook of Alpha Pinene showed mixed sentiments during the third quarter of 2021. However, there was a spike in the regional pricing for Alpha Pinene after the wildfire impacted power imports in the US and impacted operations. High freight cost followed by the delay in shipping of raw materials from the Asian countries led to the increase in prices of Alpha Pinene during the end of September. Additionally, demand remained stable and firm from the downstream pharmaceutical industry throughout the quarter.
In Q3 2021, the market of Alpha Pinene in Asia experienced an upward trajectory due to the surge in demand for solvents. The prices of Alpha Pinene have witnessed a gradual increment during the third quarter on the back of a consistent rise in utilization rates of downstream fragrance industries. The shortage of usable containers amid high demand in China led to the spike in pricing of Alpha Pinene, while logistical issues also amplified the overall situation. It was noticed that the skyrocketing freight cost affected the prices of various commodities in the country. In India, the ex-Mumbai prices rose from USD 2979/MT to USD 3112/MT within the third quarter.
European market experienced an increase in the prices of Alpha Pinene during the third quarter of 2021. A steep rise in the shipping charges of upstream feedstock from Asia resulted in the price uptrend of Alpha Pinene in Europe. A spike in demand was observed from the downstream industries including fragrance, pharmaceutical, and others across the region. Traders highlighted that lack of labour shortages caused extended lead times at several European ports.
