For the Quarter Ending June 2024
North America
In the second quarter of 2024, the Anisole market in the USA exhibited a mixed price trend, influenced by average demand from downstream sectors such as perfumes, dyes, and agrochemicals. The perfume industry maintained consistent consumer spending and product launches, providing stable demand for Anisole. Meanwhile, the dyes sector experienced variable demand due to irregular production schedules and inventory adjustments, contributing to price fluctuations. The agrochemical sector showed moderate demand, driven by seasonal agricultural activities, further adding to the mixed pricing scenario.
Increased production costs for Anisole were a significant factor, driven by higher prices for upstream raw materials, and elevated energy costs. In June, energy input costs, notably WTI crude futures, remained at $82 per barrel due to geopolitical tensions in Eastern Europe and the Middle East. The persistent Israel-Hamas conflict, despite attempts at resolution through US-backed mediation, continued to contribute to geopolitical uncertainty. Despite these challenges, the supply of Anisole remained stable, with manufacturers maintaining adequate inventory levels to meet the average demand from downstream industries. Market participants, however, adopted cautious procurement strategies due to economic uncertainties, which further contributed to the mixed price trend.
In summary, the second quarter of 2024 for Anisole in the USA was characterized by a mixed price trend, stable demand from the perfume industry, variable demand from the dyes sector, moderate demand from agrochemicals, and increased production costs, creating a complex and cautious market environment.
APAC
The second quarter of 2024 witnessed a notable shift in Anisole pricing across the APAC region, primarily influenced by a combination of robust demand from downstream sectors, particularly the perfume, dyes, and agrochemical industries, and supply chain dynamics. Several factors significantly impacted the market, including active procurement from end-use industries, anticipated seasonal demand increases, and strategic manufacturing adjustments responding to upstream costs and market conditions.
Focusing exclusively on China, the region experienced the most substantial price volatility. The correlation between heightened global oil prices and increased freight charges contributed to Anisole's price movement. Additionally, post-holiday manufacturing resumption and the anticipation of peak season for perfumes and dyes further bolstered demand. The seasonality effect, combined with the limited availability of finished goods, led to a slight upward trend in prices across the quarter.
The quarter began with stable pricing, which saw a cumulative 2% increment by its end. Concluding at USD 2200/MT FOB Qingdao, the pricing scenario reflects a cautiously optimistic market sentiment, driven by strategic supply management and consistent downstream demand recovery.
Europe
In the second quarter of 2024, the Anisole market in Europe faced a mixed pricing environment due to varied demand from downstream sectors, including dyes, perfumes, and agrochemicals. Demand from the perfume industry remained stable, driven by ongoing consumer interest and the introduction of new products. However, the dyes sector encountered fluctuating demand due to irregular production schedules and inventory management challenges. The agrochemical sector experienced moderate demand, influenced by seasonal agricultural patterns and market conditions.
Despite these mixed demand trends, Anisole prices in Europe showed limited variation, reflecting a generally stable market. An adequate supply of Anisole was available to meet the needs of downstream industries, preventing significant price swings. Production costs were impacted by rising prices for upstream raw materials, as well as higher energy costs. Geopolitical uncertainties, including fluctuations in crude oil prices, added to the cost pressures faced by manufacturers.
Economic uncertainties across Europe led to cautious procurement practices among market participants, affecting overall market dynamics. Despite these challenges, the supply chain for Anisole remained stable, with no major disruptions affecting availability. In summary, the second quarter of 2024 for Anisole in Europe was marked by a mixed price trend, stable demand from the perfume sector, variable demand from dyes, moderate demand from agrochemicals, and increased production costs, contributing to a complex market landscape.
For the Quarter Ending March 2024
North America
Throughout the first quarter of 2024, Anisole prices have been on a soft note in the US market as prices decreased in the exporting market. The demand for Anisole from the downstream agrochemical, dyes, and perfume industry has remained soft amid null season demand, leading to the bearish market sentiments of Anisole among the sellers.
The market transactions were mainly based on small orders. On the other hand, according to data released by the US Bureau of Labour Statistics, the annual inflation rate in the US has edged up to 3.2% in February 2024, compared to 3.1% in January. Foreseeing the rise in inflationary pressures, the Federal Reserve has effectively ruled out the possibility of an interest rate cut before June, keeping it in the 5.25% to 5.5% range since last July. The firm inflationary pressure has further impacted the purchasing power of consumers which further deteriorated the market sentiments of Anisole.
Meanwhile, imports from Asia have turned cheaper as prices decreased in the exporting market amid sufficient inventories which in turn led to low imported prices of Anisole in the US market. Additionally, spot prices for the China-US routes shifted direction as of mid-February. The cumulative gains were relatively smaller in China-US routes during the upswing. Hence, the slump arrived later at a slower pace. According to Freightos, the latest index for China/East Asia - North America West Coast decreased by 7% to stand at $4,419/FEU while the index for the East Coast was also down by 8% to $6,107/FEU as of March 2024. Despite this, material availability was limited as buyers were reluctant to stock the material due to weak demand.
Asia- Pacific
Prices of Anisole have persistently decreased in the Chinese market during the first quarter of 2024. The reduced market operations amid the Chinese Lunar New Year Holidays have deteriorated the market sentiments of Anisole. As a result, the manufacturers have reduced their prices throughout the quarter. In addition, the feedstock Phenol prices have decreased which resulted in the low production cost of Anisole in the domestic market supporting the prices to follow a downtrend. Although, the persistent strength in the crude oil prices, failed to propel the Anisole prices higher amid a holiday-shortened month but put a floor under prices in the domestic market. Furthermore, the downstream manufacturers have avoided bulk restocking as the demand from the downstream derivative industry has shown no signs of significant improvement. On the demand front, the inquiries from the downstream agrochemical, dyes, and perfume industries have remained tepid with limited instances of new orders reported by market players in the given time frame. Meanwhile, inquiries from the overseas market have also been observed on the lighter side amid macroeconomic headwinds which dampened the end-user demand. As a result, manufacturers of Anisole have operated their prices at low level in the domestic market.
Europe
Throughout the first quarter of 2024, Anisole prices have been marching higher in the European market as rallying crude oil and production hiccups fuelled relentless hikes during the quarter. Supply chain issues driven by the Red Sea crisis added to the bullish scene. In addition, the feedstock Phenol prices have increased which resulted in the strong domestic production cost of Anisole, supporting the prices to follow an uptrend in the domestic market. Brent Crude prices have remained above $80 per barrel for much of February, indicating a tightening in the physical market due to ongoing OPEC+ production cuts and the prolonged rerouting of cargoes away from the Red Sea and the Suez Canal. The hiked Crude Oil prices have further pressured the upstream Phenol to remain buoyant. In addition, the manufacturing firms have been operating at reduced rates in the wake of challenging economic conditions across the regional market. As a result of low operating rates, manufacturing firms have faced increased supply-side pressures as there was relatively limited availability of the finished goods. However, demand for Anisole from the downstream agrochemical, dyes, and perfume industry was average in the regional market amid unfavourable economic conditions. Nonetheless, it had a limited bearing on the prices of Anisole.
For the Quarter Ending December 2023
North America
Anisole prices have continued to rise in the US market throughout the fourth quarter of 2023. The latest increase in the prices was majorly attributed to limited material availability within the domestic market. The feedstock Phenol prices have increased which resulted in the high production cost of Anisole, supporting the prices to follow an uptrend in the domestic market.
Although, on the demand front, the inquiries from the downstream perfume, and dyes as well as from the agrochemical industry have remained tepid amid off-season dullness it was insufficient to drive the price realizations of Anisole at the lower end in the domestic market. Additionally, the macroeconomic headwinds such as high interest rates and persistent inflationary pressure have further eroded the purchasing power of end-users. Although, demand from the Asian market has slightly improved which promoted the manufacturers to revise their export prices.
In terms of domestic production, the manufacturing firms have remained under pressure as demand from the downstream industry has not fully recovered. The availability of finished stock of Anisole was limited to cater to the overall downstream demand. Furthermore, in December, the U.S. manufacturing sector experienced a continued contraction. This contraction reflects the persistent softness in demand, prompting the manufacturing firms to manage their production outputs accordingly. As per the market sources, manufacturing PMI fell to 47.9 points in December, down from 49.40 in November. In addition, the data from the Federal Reserve has also shown that Manufacturing Production in the United States decreased 0.8% year-on-year in November 2023.
Asia- Pacific
Prices of Anisole have experienced a mixed sentiment in the Asian market during the fourth quarter of 2023. During the initial of Q4 2023, Anisole prices have gained an upward pace in the Chinese market on the back of firm cost support and stable procurement in the domestic market. International crude oil prices have increased consistently and consequently, the rise in upstream Phenol prices has culminated in the increased cost support for Anisole in the domestic market. On the demand front, the inquiries from the downstream derivative (agrochemical, dyes, perfume) industry have remained moderate. The market transactions were mainly based on small orders in the domestic market. However, towards the end of Q4 2023, Anisole prices have plunged in the domestic market. The feedstock Phenol prices have decreased which negatively impacted the production cost of Anisole in the domestic market. These supported the prices to follow a downtrend in the domestic market. In addition, demand for Anisole from the downstream agrochemical, dyes, and perfume industry has remained subdued which led to a price decline in the domestic market. At the same time, demand from the overseas market has also been observed on the lower end since the Federal Reserve and central banks in Europe and Asia began raising interest rates last year to cool inflation that was at a multi-decade high. As per the sources, exports dropped from 6.4% to $ 274.8 billion indicating a weak global demand for Chinese goods. Additionally, support measures implemented by Beijing have provided some support for a hopeful recovery. However, lingering challenges such as a prolonged property crisis and subdued global demand continue to pose concerns for policymakers towards the Q4-end. Furthermore, in addition, the destocking season towards the year-end has further prompted the manufacturers to keep the Anisole prices at low levels.
Europe
The European market witnessed varied trends in Anisole prices throughout the fourth quarter of 2023. In October, there was a substantial increase in Anisole prices in the German market, primarily driven by limited material availability domestically. The surge in feedstock Phenol prices, caused by tight supply, contributed to elevated production costs for Anisole in the domestic market, consequently pushing overall prices upwards. However, in November and December of 2023, Anisole prices experienced a decline in the domestic market. This downturn was attributed to tepid demand from the downstream agrochemical, perfume, and dyes industries influenced by macroeconomic challenges such as persistent inflationary pressure, high-interest rates, and subdued seasonality. These factors collectively exerted downward pressure on Anisole prices across the domestic market. Furthermore, the cost support from feedstock Phenol was limited on Anisole prices as its prices settled on the lower end in the domestic market. In addition, the manufacturing firms have been operating at reduced rates as demand from the downstream industry has not fully recovered in the domestic market. Furthermore, the German manufacturing Purchasing Manager Index remained in the contraction (i.e., below 50) indicating a contraction in industrial and manufacturing activity. Apart from this, manufacturers engaged in destocking activities, clearing out their inventories at reduced prices.
For the Quarter Ending September 2023
North America
Prices of Anisole have witnessed fluctuations in the US market during the third quarter of 2023. During the initial and mid of Q3, Anisole prices have witnessed a downward trend in the domestic market. The cost pressure from feedstock Phenol was limited as their prices settled on the lower end in the given time frame. On the demand front, the inquiries from downstream agrochemical, dyes, and perfume industries have remained subdued, which weighed down the prices of Anisole. The market transactions were relatively light as the enthusiasm of terminal firms to enter the market was not strong in the domestic market. The availability of finished stock of Phenol was sufficient as new orders were declined. However, towards the end of Q3, Anisole prices have increased marginally. The feedstock Phenol prices have risen, uplifted by strong crude oil prices resulting in the high production cost of Anisole in the domestic market. In addition, the inquiries from the downstream perfume and agrochemical have remained stable. Thus, the manufacturers have opted for a very slight change in the domestic market.
Asia- Pacific
Anisole prices have witnessed a bearish trend in the Chinese market throughout the third quarter of 2023. However, feedstock Phenol prices have increased, but it was insufficient to drive the prices of Anisole to the higher side in the domestic market. The demand for Anisole from the downstream agrochemical, dyes, and perfume industry has remained subdued amid weak Chinese economic recovery. The market transactions were relatively light as the enthusiasm of the terminal firm to enter the market was not strong. At the same time, the inquiries from the overseas market have remained tepid. Thus, the consumption of Anisole has decreased. As per the market sources, Export rates have declined from 14.5% in July to 8.8% in August, indicating a weak global demand. In addition, the manufacturing firms were operating at low rates as demand from the downstream industry had not fully recovered in the domestic market. On the other side, China's manufacturing purchasing manager's index remained in the contraction zone, indicating a deterioration of industrial and manufacturing activities. Furthermore, the availability of finished stock of Anisole was sufficient, which supported the prices to follow a downtrend in the domestic market.
Europe
Anisole prices have witnessed mixed trends across the European market during the third quarter of 2023. During the initial and mid of Q3, Anisole prices have inched lower in the German market. The cost pressure from feedstock Phenol was limited as its prices progressed in a downward trend in the domestic market. Furthermore, persistent, firm inflationary pressure and high-interest rates have deteriorated the purchasing power of end-users. Meanwhile, demand for Anisole from the downstream dyes, perfume, and agrochemical industry has remained subdued, with limited instances of new orders reported by market participants, which weighed down the prices of Anisole in the domestic market. In addition, the operating rates remained low as demand from the downstream industry had not fully recovered. The level of inventories was sufficient to cater to overall downstream demand. However, towards the end of Q3, Anisole prices have gained pace in the domestic market. The feedstock Phenol prices have increased, uplifted by strong international crude oil prices, resulting in the high production cost of Anisole in the domestic market, supporting the prices to follow an uptrend in the domestic market.
For the Quarter Ending June 2023
North America
Anisole prices have continued to decline in the US market throughout the second quarter of 2023 due to limited demand and sufficient inventories in the domestic market. In addition, US economic conditions have deteriorated due to firm inflationary pressure, tightened monetary policies along with aggressive interest rates which impact the industrial and trade activities. The inquiries from the downstream agrochemical, dyes as well as from the perfume industry have remained soft and resulted in declining consumption rates, negatively impacting the market expansion of Anisole in the domestic market. At the same time, demand from the overseas market has also been observed on the lighter side. Furthermore, manufacturers have destocked their inventories in the wake of weak demand. On the other side, the availability of finished stock of Anisole has remained sufficient to cater to overall downstream demand which further weighed down the prices of Anisole in the domestic market. In addition, the US manufacturing purchasing manager’s index dropped from 46.9 in May to 46.0 in June, indicating a contraction in both industrial and manufacturing activities.
Asia- Pacific
Anisole prices have inched lower in the Chinese market throughout the second quarter of 2023 backed by weak feedstock Phenol prices and limited downstream demand. After growing at a faster-than-expected pace in Q1 after the ease of COVID restrictions, the world's second-biggest economy has lost steam in April-June amid steepening deflation, and weak demand from the overseas market. The cost pressure from the feedstock Phenol was insufficient as its prices progressed in a downward trend as reported by market participants. On the demand front, the inquiries from the downstream agrochemical, perfume as well as dyes industries have remained on the lighter side in the domestic market. The market transactions were mainly flat as purchasing enthusiasm of the terminal firm was not strong. In addition, the availability of finished stock of Anisole was sufficient as a result the operating rates in the manufacturing firms remained weak as manufacturers were hesitant to build up the excessive inventories, therefore prices operated at a low level in the domestic market.
Europe
Overall, Anisole prices have shown a bearish trend in the European market throughout the second quarter of 2023 amid weak feedstock prices and tepid downstream demand. The global economic headwinds such as spiraling inflationary pressure, high-interest rates, and tightened monetary policies have impacted the consumer’s pocket. Meanwhile, the demand for Anisole from the downstream agrochemical, dyes, and perfume industries has remained on the lower side amidst weak buying trends among the end-users. According to ifo Business climate index dropped from 91.5 in May to 88.5 points in June. At the same time, demand from overseas markets has also decreased amid economic uncertainties which weighed down the prices of Anisole in the domestic market. On the upstream front, Phenol prices have declined which eased the overall production cost of Anisole in the domestic market. Furthermore, the operating rates remained under pressure in the domestic market and material availability has remained sufficient to cater to overall downstream demand which further supported the Anisole to follow the downtrend.
For the Quarter Ending March 2023
North America
The first quarter of 2023 saw a declining trend in the North American market on account of a weak demand outlook for the product from the dyes and pesticide sector. After the new year holidays, the domestic market tried to revive the market. However, fewer market inquiries and slower industrial production impacted the overall market dynamics of Anisole in the US market. Towards the quarter's end, the US bank crisis and supply chain disruption due to labor shortage proportionally governed the quarterly prices of Anisole in the US market.
Asia-Pacific
In Q1 of 2023, Anisole prices declined in the Asia-Pacific region. The major players maintained their price quotation on the lower edge due to an adequate quantity of inventory and stable to weak demand from the downstream agrochemical, perfume, and related industries. The fall in pricing was assigned to the domestic market's strong material availability and weak demand dynamics. Facets such as the Lunar holidays and hampered supply chain also influenced the overall prices of Anisole. The Domestic demand from the agrochemical, fragrance, and food flavoring industries has been weak. The demand from the international market has also slightly increased at the same time.
Europe
Overall, market dynamics of Anisole were observed on the declining trend in the European market in Q1 of 2023. Due to a sufficient amount of inventory and stable to weak demand from the downstream agrochemical, perfume, and associated industries, the key participants kept their price quotes on the lower edge. The domestic market's robust material supply and weak demand dynamics were blamed for the decrease in pricing. The overall cost of Anisole was impacted by factors including a hampered productivity rate and a series of rallies that occurred in the European market. Agrochemical, fragrance, and food flavoring businesses have not seen strong domestic demand. At the same time, there has been a minor increase in the demand from the overseas market.
For the Quarter Ending December 2022
North America
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.
Asia- Pacific
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.
Europe
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
North America
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.
Asia- Pacific
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.
Europe
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
North America
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.
Asia- Pacific
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.
Europe
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
North America
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.
Asia-Pacific
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.
Europe
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
North America
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.
APAC
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.
Europe
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
North America
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.
Asia
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.
Europe
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
North America
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.
Asia Pacific
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.
Europe
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
North America
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.
Asia-Pacific
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.
Europe
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 202
North America
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.
Asia
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.
Europe
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.
