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.