For the Quarter Ending December 2022
North America
Benzaldehyde prices showed mixed sentiments in the USA market during the fourth quarter of 2022. During the first two months of Q4, Benzaldehyde prices increased owing to high inflationary pressure and volatile energy prices. Demand from the downstream dyes, perfumes, and allied industries has remained stable to firm in the regional market. In addition, feedstock Toluene prices have increased, resulting in the high production cost of Benzaldehyde. Although, during the last month of Q4, Benzaldehyde prices have slightly decreased due to the region's weak demand and sufficient inventory level. Furthermore, manufacturing activity contracted in December, and the Purchasing manufacturing index dropped from 49.0 to 48.4 in December, indicating a slowdown in manufacturing and industrial activity.
Asia-Pacific
Benzaldehyde prices decreased in Asia- the Pacific region throughout the fourth quarter of 2022. In China, Benzaldehyde prices dropped due to the muted demand dynamics amid soft consumer sentiment caused by the slow performance of downstream dyes, the perfume industry, and covid lockdown. Meanwhile, demand from the overseas market has also remained on the weak side due to the downturn in the global economy. Similarly, in India, both domestically produced and imported material prices have been lower. The decline in the prices was attributed to the bearish demand from the downstream dyes, food, and flavoring industry. Meanwhile, sufficient inventory is available to cater to the overall domestic demand.
Europe
Prices of Benzaldehyde dropped in the European market during the fourth quarter of 2022 as downstream demand remained subdued while material availability increased throughout the quarter. The sharp drop in the freight rates increased the material available on European shores while the demand dropped in the Asian market. Additionally, natural gas prices stabilized in the regional market after the upheaval in Q3, which softened the production cost of Benzaldehyde. On the other hand, feedstock Toluene prices dropped. In addition, demand from the downstream food and flavoring, dyes, and perfumes, along with other competitive industries, has continued to remain bearish due to the sluggish buying sentiment and slow growth of key industries.
For the Quarter Ending September 2022
North America
Benzaldehyde prices have witnessed mixed sentiments in the USA market during the third quarter of 2022 due to fluctuation in the feedstock pressure. During July, Benzaldehyde prices have gained upward momentum, as the high raw material Toluene prices. Further, turmoil in the energy prices and high inflation have contributed to the price increase in the regional market. Also, limited inventory level coupled with increased demand from the domestic and international markets. However, during August and September, Benzaldehyde prices dropped due to weak cost support from the feedstock and bearish demand from the downstream food and flavoring and allied industries. Meanwhile, supply dynamics remained under pressure as the key exporting port of Houston witnessed port congestion that restricted the availability of the material across the overseas market. However, weak demand from the European nations and Asian countries resulted in the limited impact of reduced supply on the overall prices of Benzaldehyde. Prices of Benzaldehyde plunged by more than 3% during September 2022.
Asia- Pacific
Benzaldehyde prices showed mixed sentiments in the Indian market during the third quarter of 2022. During July, Benzaldehyde prices increased by 2.2% due to the improving demand from the downstream agrochemical and food and flavoring industries. However, during August and September, Benzaldehyde prices dropped to the weak cost pressure from the feedstock prices. The downstream market has lowered, and fewer orders were observed from the downstream food, flavoring, and allied industries. The downstream market players were more cautious due to global economic challenges in buying goods and followed a wait-and-see approach. In addition, cheap imports from the exporting countries caused the Benzaldehyde prices to increase in the domestic market. However, with the onset of the festive season in India, the demand fundamentals are likely to strengthen in the Indian domestic market. Benzaldehyde CFR JNPT prices were assessed at USD 2106/MT during September 2022.
Europe
Since the Russia-Ukraine escalations, the European countries have faced strong headwinds due to the crisis in natural gas supply and high prices of the available material. The limited natural gas supply has imposed downside risks on the manufacturing capacities of the downstream sectors. Benzaldehyde prices have continued to fall in the European market during the third quarter of 2022. The latest drop in the price trend has been caused by a steady flow of cheaper imports from the Asian and North American regions. In addition, the domestic cost of production continues to remain high due to elevated energy and operating costs, resulting in weak output rates. Furthermore, low feedstock Toluene and Chlorine prices caused Benzaldehyde to drop further in the regional market. In addition, an excessive slowdown in manufacturing output across Europe amid the energy crisis in the region. In addition, Eurozone Manufacturing Purchasing Index (PMI) fell from 49.6 points to 48.5 points in September 2022. Also, the inflows of new orders fell as demand for Benzaldehyde from the food and flavoring industries continued to drop. As a result, prices of Benzaldehyde in Germany fell by more than 6 % during September.
For the Quarter Ending June 2022
North America
Benzaldehyde prices have been rising throughout the second quarter of 2022 instead of a hampered material supply. Demand fundamentals have been buoyant throughout the region as downstream food and flavouring industries attempt to maintain the balance. However, supply witnessed disturbed dynamics across the region on the back of high input costs that led producers to raise the price of materials for domestic and international converters. Furthermore, global inflation has been forcing the prices of Benzaldehyde to follow an upward trajectory. In addition, the USA also imports a certain percentage of its consumption from Asian and European producers. Thus, expensive overseas materials further supported the current price trend of Benzaldehyde in the regional market. Consequently, increased product charges partially pass the cost burden to customers to protect their profit margins. As a ripple effect, prices of Benzaldehyde FOB Texas were settled in the range of USD 1327/MT to USD 1352/MT during June.
Asia- Pacific
In contrast to the last quarter of 2022, Benzaldehyde showed positive market sentiments in the Asia-Pacific region during Q2 2022. Prices of Benzaldehyde witnessed an upward momentum in the Indian market, backed by the limited supply and high demand. Additionally, volatile crude value amidst the Russia-Ukraine war has positively impacted the raw material cost; notably, Toluene and Chlorine, which in led forced Benzaldehyde to follow the uptrend in the domestic market. Furthermore, Since the arrival of the summer season, the Indian market has been experiencing seasonal offtakes from the domestic market, and demand from the downstream Food and Flavouring, pharmaceutical, as well as cosmetics industries has remained robust. Also, India is a majorly imported commodity, and the price of imported materials is increasing due to simultaneously escalating maritime costs. However, freight cost was to be stabilizing in the mid of May, nevertheless, freight cost still being on the top note that further weighed on the high pricing of Benzaldehyde. Thus, prices of Benzaldehyde CFR JNPT were assessed at around USD 2264/MT throughout the June.
Europe
During the quarter ending June, Benzaldehyde prices in Europe indicated an upward trajectory due to an upsurge in demand in the regional market. In addition, the skyrocket upstream Crude oil value has proportionated the raw material Toluene and Chlorine, which further impacted the prices of Benzaldehyde. Furthermore, many downstream industries have been attempting to maintain balance; hence, downstream market dynamics have been buoyant in Europe. However, supply fundamentals continued to be imbalanced as domestic production has cut its operating rates on account of the high energy cost in the European region. At the same time, import prices of the material have continued to rise due to robust demand for material in the regional market coupled with a high maritime cost which further provoked the price of Benzaldehyde to follow an upward trend across the regional market. As a ripple effect, the price of Benzaldehyde was settled in the range of USD 1640/MT to USD 1642/MT throughout June.
The Benzaldehyde showcased an upward trend during the first quarter of 2022 owing to increased demand for Benzaldehyde in the pharmaceutical sector as an intermediate. Besides the increased demand, rerouting in shipments due to the Russia-Ukrainian conflict led to delayed supplies in the international market. Furthermore, container freight rates were high as the shortage of cargoes persisted in the US. Also, the surged upstream crude oil value has affected the feedstock Toluene and Chlorine, which consecutively supported the upward price trend of Benzaldehyde across the region. Benzaldehyde prices in the USA surged by nearly USD 200/MT in the quarter ending March in the USA.
In contrast to the last quarter of 2021, Benzaldehyde showed positive market sentiments in the Asia-Pacific region during Q1 2022. Prices remained uphill on the back of crippling availability of the product in the region. The geopolitical tension between Russia and Ukraine impacted all commodity markets. Supply shortage and growing demand from the downstream pharmaceutical solvents induced cost pressure on petrochemicals such as Benzaldehyde. As India relies on China for the imports of Benzaldehyde, implementation of ‘Zero Covid Policies’ has delayed production and trading activities, resulting in high freight charges because of container shortage, which led to the supply deficit in the Indian market. The prices of Benzaldehyde CFR JNPT were assessed at USD 2123/MT during March 2022.
During the quarter ending March, Benzaldehyde prices in Europe indicated an upward trajectory due to an upsurge in demand in the regional market. Besides, geopolitical tension has led the crude prices to skyrocket, which impacted feedstock Toluene and Chlorine costs, pressuring the Benzaldehyde price to increase. The increased crude price has severely affected the petroleum feedstocks, influencing road and rail transportation. On the other hand, the spike in demand from pharmaceutical industries as an intermediate has also boosted the cost of Benzaldehyde. Thus, the value of Benzaldehyde escalated to USD 2805 per MT in Germany.
