For the Quarter Ending March 2022
Anisole prices increased across the US market during the first quarter of 2022. Major players have been heard fighting over rising inflationary pressures because of consistent upstream value escalation. The sudden onset of the Ukraine-Russia crisis during the last week of February drove up crude oil prices, causing feedstock prices, including Benzene, to skyrocket. Meanwhile, global economic recovery and increased demand from the pharmaceutical sector as a solvent weighed on Anisole pricing in the United States during Q1 2022. Anisole prices in the USA were assessed in the range between USD 4150-4280/MT in the quarter ending March. Furthermore, rising fuel prices and shipment disruptions caused by the Russia and Ukraine conflicts caused a delay in trade, affecting Anisole prices in the region.
Anisole showed positive market sentiments in the Asia-Pacific region during Q1 2022, in contrast to the last quarter of 2021. Anisole prices showed an upward trajectory owing to the rise in the upstream crude oil prices, amidst the Russia and Ukraine conflict, putting cost pressure on petrochemicals such as Anisole. In addition to the limited availability, rising demand for Anisole from the pharmaceutical industries as a solvent continued to keep its prices in the uptrend. Furthermore, Covid-outbreaks and shutdowns in several cities negatively impacted the production activities, extending the supply scarcity in the domestic market. During March, Anisole FOB Qingdao (China) prices were assessed at USD 4055/MT.
Anisole prices showed mixed sentiments in the European region. At the beginning of Q1 2022, the Anisole showed an upward trend due to the limited availability and rising demand from the downstream pharmaceutical sector as a solvent, which is never a dull market. Soaring crude oil prices caused by Russia's invasion of Ukraine affected the feedstock Benzene prices and have led to the high pricing of Anisole in the region. During mid of February, the European petrochemical industry was battered due to the energy crisis in Q1 of 2022 on account of several European countries' ban on Russian oil. Production cuts by refineries due to the extended energy crisis, along with a shortage in crude oil and bearish demand from the downstream textile industries to produce dyes, subsequently plummeted the price of Anisole in the Europe region. Although, during March, Anisole showcased surged in the prices by nearly USD 100/MT.
For the Quarter Ending December 2021
The North American market observed a substantial surge in Anisole prices throughout Q4 2021, fuelled by buoyant Benzene values upstream. Demand from the downstream personal care and cosmetics sector increased as consumer purchasing desire increased. Despite the scarcity of upstream, Anisole had a strong demand prognosis from the downstream pharmaceutical and personal care sectors, which resulted in Anisole pricing over the era.
Prices in December in the region was last assessed at USD 3933.64/MT Ex-Depot Mumbai
Anisole's price has risen in APAC region during Q4 2021, with marginal changes, aided by firming upstream crude oil and a sustained growth in prices for freight and shortage of container. Furthermore, the expanding usage of large consumer goods firms in China and India is likely to drive Anisole demand in the long run. From the beginning of H2 2021 to the end of the quarter in December 2021, the price of Anisole has not shown any significant changes.
Due to turnarounds at many manufacturing plants across Europe, Anisole supplies in the European region were constrained in Q4 2021. The energy crisis in the onset of the quarter, combined with a strong demand expectation, boosted Anisole's price in October and November. Upstream Benzene also had a shortfall of supplies in the European market which gave adequate cost support to Anisole pricing in Q4. Due to delayed imports from Asian countries and high freight charges amid container shortage, demand from spot buyers was not met. Resurging cases of COVID-19 are projected to resurface the prices in the following quarter, posing a supply crunch for Anisole supplies.
For the Quarter Ending September 2021
In Q3 2021, the North American market witnessed a proliferative rise in prices of Anisole backed by the buoyant values of upstream Benzene. In addition, the arrival of the Ida hurricane in the Gulf Coast of the USA resulted into the shutdown of several production facilities along with oil and gas refineries. The supply chain was disrupted as the repercussion of the Ida hurricane which consequently impacted the overall global market for Anisole. Amidst the scarcity of upstream, Anisole experienced a sturdy demand outlook from the downstream pharmaceutical and personal care sectors which consequently fumed Anisole prices during the timeframe.
During the third quarter of 2021, the Anisole market in Asia observed an upward trajectory due to the leap in the values of upstream Benzene, attributed to buoyant upstream crude prices. Moreover, due to the plant outages in Gulf Coast triggered by the hurricane Ida, the Asian market experienced a tighter supply of feedstock which further sent ripples to the prices of Anisole. In addition, several plants in China curtailed their production rate followed by the “Duo-control system” on energy consumption per unit GDP coupled with the shut down of Ningbo port in China supported the hike in the pricing trend of Anisole during the Q3 as China is one of the major producer and exporter of Anisole. Anisole Ex Silvassa India, monthly average prices stood at USD 3873.89 in September showcasing a hike of approximately 4% since July.
In Europe, the Anisole market showcased a mixed sentiment during the third quarter. At the beginning of the quarter, the production rates were quite high backed by the ample availability of upstream Benzene. However, towards the end of Q3, a marginal rise in the prices of Anisole was observed due to the supply chain disruption backed by shortages of containers that led to exorbitant freight charges and extended import times from 3-5 weeks. Energy Crisis towards the end of the quarter along with the firm demand outlook further propelled the value of Anisole in September.
For the Quarter Ending June 2021
Overall, the Anisole market outlook in the North American region gained traction with the improvement in the production run rates as producers in the US Gulf coast recovered from the aftermaths of the winter storm Uri. Anisole pricing trend continued to be buoyed taking cost support from upstream Benzene. Demand outlook stood balanced in the North American region due to the stable offtakes from the downstream personal care and pharmaceutical sectors. Several spot buyers opted to replenish their inventories ahead of the upcoming hurricane season in the US. The export market activity paced amidst better plant production rates both on upstream and downstream front.
The Anisole market outlook in the Asia pacific region observed mixed trends during the second quarter of 2021. The availability of upstream Phenol remained ample in the region and offtakes were low to amid limited Anisole requirement as a solvent. Demand slowdown due to the second Covid wave in India and upstream inflation curtailed producer’s margins by a significant percentage. As a repercussion, Anisole prices in India were assessed around USD 3810 per tonne in June. China’s Anisole market outlook seemed uncertain after the Chinese government imposed consumption taxes on the imported mixed aromatic commodities. Traders feared lack of regional availability after the tax imposition and reported bolstered upstream rates consequently.
During the second quarter of 2021, Anisole supplies in the European region were tight owing to turnarounds at several manufacturing facilities throughout Europe. The market situation however towards the end of Q2 due to the restored arbitrage with the US. Offtakes were consistent from the downstream personal care and pharmaceutical sector. As a repercussion, Anisole demand outlook was somewhat balanced throughout the quarter. However, the pricing trend remained firm due to firm upstream Benzene which further provided the sufficient cost support to the prices of Anisole in the European market.
For the Quarter Ending March 2021
During the first quarter of 2021, Anisole supplies remained tight in the North American region, owing to the shortage of feedstocks as plants were forced to shut down due to power outages amid the severe freeze weather in the US gulf region in February. Production outages resulted in global supply shortage and impacted the prices of Anisole in the regional market as well. Demand surged from the downstream personal care and cosmetics sector amid increase in buying interest of consumers.
Supplies in the Asia Pacific region during the first quarter marginally improved but remained tight as several major plants ended their maintenance turnaround but were heard operating at reduced efficiencies. However, some difficulties were witnessed in the availability of key feedstock as the inventories remained low amid the Chinese lunar year holidays. Demand kept a stable stance throughout the quarter as the buyers were procuring materials only on need basis. Prices of Anisole underwent an increment by +USD 176/MT settling at USD 3947/MT in EXW Shanghai in January-March quarter.
Supplies of Anisole in the European region remained constrained in first half of Q1, as several plants remained on a maintenance turnaround since last quarter. Market offtakes further slowed by the slowdown in industrial and commercial activities due to the extreme weather in the northwest Europe. The demand however surged as the offtakes were improved from the downstream personal care and cosmetics sector.
For the Quarter Ending December 2020
The Asian Anisole market witnessed a surge in demand backed by significant fall in Covid-19 cases and recovery from various downstream end uses. In addition, festive season in major Asian countries increased overall demand of Anisole from cosmeceuticals products. The prices of Anisole have been on an upward trend from first month of H2 of 2020. Also, increasing penetration of major consumer products companies in China and India is expected to further surge the demand of Anisole in long terms. The price for Anisole from starting of H2 2020 to quarter ending December 2020 witnessed an hike of around 5 percent.
Supply was restricted in Q4, as Phenol, one of the key feedstocks in producing Anisole was on short supply as several domestic producers carried out maintenance turnaround and one major player in Finland declared force majeure. Limited availability of feedstock created a shortage in supply of fresh stock of Anisole. Major traders and suppliers of Anisole were fulfilling long term contract demand of Anisole. Demand from spot buyers were fulfilled by the import from Asian countries. Relaxation in COVID-19 restrictions is expected to propel the demand of Anisole in the coming quarter. However, due to resurging cases, regional traders may await the short-term recovery in the market.
The positive momentumintheconsumer goods industry post Covid-19, have stabilized the regional Anisole demand. Overall production remained at reduced levels due to aftermath of plant turnarounds due to seasonal hurricanes. Due to growing penetration of the international cosmetics brand in the United States, Anisole producers have reported buoyant demand of the product in the region. CFR Los Angeles Anisole prices which remained pressured under low demand during Q3 are expected to show a rebound in Q1 of 2021 with rising upstream crude futures and positive export potential seen in the overseas markets.