For the Quarter Ending December 2022
Anisole prices have continued to witness a bearish rally in the USA market throughout the fourth quarter of 2022, owing to weak cost pressure and sluggish demand from the downstream industries. Additionally, upstream Crude oil prices continued their downward side in November, hence resulting in weak cost pressure. Meanwhile, demand from downstream perfumes, agrochemicals, and other competitive industries has been weak, resulting in weak volume consumption. Furthermore, Consumer sentiment has dropped drastically in the USA market, which has been indicated by the drop in PMI, which dipped below (i.e., 49.7) in November, signifying both industrial and manufacturing activity. Additionally, the holiday season further contributed to the weak demand dynamics in the regional market.
Anisole prices continued to decline in the Asia-Pacific region during the fourth quarter of 2022. The market trend in China remained weak as the demand from downstream agrochemicals, perfumes, and other competitive industries remained subdued. The manufacturers and suppliers did not receive much inquiry about the product forcing them to decline the Anisole prices in the domestic market. Meanwhile, demand from the overseas market has also remained on the weak side due to the soft buying sentiment and the slow growth of key industries. Similarly, in India, both domestically produced and imported material prices have been lower. The decline in the prices was attributed to the muted demand from the downstream perfume, agrochemical, and allied industries. Meanwhile, abundant material availability to cater to the overall domestic market demand.
Prices of Anisole have witnessed an oscillating trend in the European market during the fourth quarter of 2022. During the first month of Q4, Anisole prices increased due to high-cost support from the feedstock Phenol. The supply has been hampered by port congestion, vessel bunching, and labor unrest, resulting in limited material availability in the regional market. Although, during the last two months, Anisole prices dropped as the market participant reported limited inquiries from downstream users as the West witnessed a drop in consumption level amid fear of a European recession, which resulted in soft consumer sentiments. Meanwhile, feedstock Phenol prices have dropped in the region as crude oil prices rallied downtrends, easing the overall cost pressure. Meanwhile, the imports from Asia- Pacific have been sufficient, increasing the material available in the European market. Import availability has increased and has been attributed to a sharp decline in the freight rates on the Europe routes.
For the Quarter Ending September 2022
Anisole prices showcased fluctuation in the USA market during the third quarter of 2022. During the initial of Q3, Anisole prices increased by more than 3%, backed by the limited availability. Bullish feedstock Phenol prices, high inflation rate, and upheaval in the energy prices have other reasons for the price raised in the regional market. Although, Consumption from the domestic market has been stable. However, during mid-Q3, Anisole prices dropped due to weak demand dynamics and a fall in feedstock Phenol prices. The demand from downstream fragrance, flavouring, and other industries remained mostly stable amid sufficient inventory levels, resulting in deteriorated pricing dynamics. Despite this, prices have slightly risen by 1% during the final of Q3 due to the stable feedstock Phenol pressure.
Prices of Anisole have increased in the China domestic market throughout the third quarter of 2022 as the cost pressure raised, while the demand from the downstream agrochemical, food flavouring, and fragrance industries has remained stable. In China, the market faced stoppage due to a resurgence in Covid cases, which not only troubled trading and production but also hampered the supply chain dynamics. As a result, prices of Anisole FOB Qingdao were settled at USD 4170/MT during September 2022. However, in India, Anisole prices showed mixed sentiments during Q3 of 2022. During July, prices have increased owing to the limited availability. Demand from the downstream agrochemical and other allied industries has improved. However, during August, prices dropped as the feedstock phenol cost was pressured. The demand from the downstream sectors has declined due to weak consumer sentiments in the Indian market. Although, during September, prices increased due to the limited imports from the exporting countries. In addition, raw material prices have increased, causing the Anisole prices to rise.
During the third quarter of 2022, Anisole prices dropped constantly in the European market, backed by the weak feedstock Phenol prices. In addition, the domestic cost of production continues to remain high amid elevated energy and operating cost, resulting in low output costs. Although, steady flows of cheap imports from exporting countries like Asia and the USA caused the Anisole prices to decline across the regional market. The speculation of recession loomed over the European region throughout the third quarter, which lowered consumer demand as the inflation rates reached record highs during Q3. In addition, supply dynamics remained under pressure due to port congestions and labor strikes. Netherlands, Belgium, and Germany witnessed major port congestions, while the UK observed weeks of labor strikes that restricted the material available in the domestic market. As a result, prices of Anisole in Germany dropped by 2-3% during September.
For the Quarter Ending June 2022
During the second quarter of 2022, Anisole prices increased marginally across the North American region on the back of the firm cost pressure coupled with the stable to weak demand from the regional market. In addition, raw material Phenol prices have been stable to the firm as crude prices observed limited to no volatility despite skyrocketing Energy cost prices in the US market. Furthermore, Anisole manufacturers have kept the operating rates in stable ranges. Meanwhile, market participants have reported a conservative procurement approach amid growing uncertainty around the downstream demand. Also, the cosmetics and food preservative industry has witnessed stagnancy in growth and consequently has kept the consumption rates in the weak to stable range. On the other side, mounting Inflationary pressure has been a source of concern; as a result, most buyers retreated to the sideline for a wait-and-see attitude and only bought on a need-to basis.
In the second quarter of 2022, the prices of Anisole showed an upward stagnancy throughout the quarter. In addition, the domestic demand appears stable amidst the Indian rainy season, forcing Anisole prices to follow the stability. In addition, existing stockpiles were ample to meet the domestic demand. However, Asian producers attempted to increase the prices to maintain their margins; nevertheless, abundant material availability could not let them strive. In addition, attractive discounts on bulk purchases for regular buyers ought to bring stability to the prices of Anisole, while spot buyers suffer the imbalanced proportion of the market. In addition, raw material prices and notable phenol have followed the steady trend across the domestic market. Furthermore, India is relying on China for the import of Anisole. Trade activities in the Indian market remained tentative because of container clogging activities at Chinese ports due to lockdowns induced by China's zero-covid policy, which further influenced the Anisole prices in India.
In Europe, prices of Anisole have witnessed an upward trajectory during the second quarter of 2022. The price hiked owing to the rising raw material Phenol prices. Moreover, the disruption caused by the Russia-Ukraine war has led to sanctions on the oil imports from Russia, which inflicted the upstream crude prices, further influencing the prices of downstream Anisole. Also, low inventories and positive consumer sentiment sparked the Anisole market. Due to the significant demand for the commodity on the domestic market, Anisole prices have increased in Germany. The rising demand from downstream pharmaceutical and solvent manufacturers has led to an increase in Anisole pricing. Also, the high road freight costs brought on by rising fuel prices contributed to the upward trend in Anisole prices in Germany.
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 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.
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.