For the Quarter Ending June 2022
The North American market saw a fluctuation in the prices of Benzyl Chloride during the second quarter of 2022. One of the leading market drivers is the expanding demand for benzyl chloride, which is used to make alcohol and is used in many other sectors. Throughout the quarter, the need for benzyl alcohol increased due to the paint and coating industry's global expansion and demand for the substance. The chemical is also used to make agrochemicals, so rising food consumption and rising disposable incomes globally promote market expansion. Additionally, benzyl chloride is commonly used in the plastics industry since it provides a range of physical properties that facilitate manufacturing, consequently promoting the market growth.
The prices of Benzyl Chloride surged in the Asian market during the second quarter of 2022 with a Quarterly inclination of 15.9%, as recorded by Chem Analyst pricing team data. Surging demand from downstream industries like dyes, plasticizers, drugs, lubricants, and cosmetics supported the Benzyl Chloride prices on an upward trajectory. Increasing costs of upstream feedstock Toluene and Liquid Chlorine pulled the prices upward. Supply in Toluene is scarce, and shippers keep prices low and are reluctant to sell. The majority of OPEC's oil-producing nations have surpassed their capacity limits, and the market supply is predicted to tighten. Increasing production became increasingly difficult in the aftermath, and international oil prices rose for three consecutive days.
Benzyl Chloride prices surged in the European region during the second quarter of 2022 with the surge in the prices of upstream feedstock Toluene and Chlorine. The rise in demand from the importing countries like the USA put cost pressure on the prices within the regional market. By indirectly supporting the global benzyl alcohol market, significant advancements in the benzyl alcohol and paint industries benefit the benzyl chloride market. The benzyl chloride industry was driven by improvements in the plastic sector and a wide range of skincare products and medications. In the forecast period, benzyl chloride demand was driven by rapid growth in developing countries, an increase in disposable income, and an increase in living standards.
For the Quarter Ending March 2022
In North America, during the first quarter of 2022 the price of Benzyl Chloride increased to USD 4780/ton CFR Illinois by the end of March 2022. A price rise was imminent across basic upstream chemicals, chlorine-based chemicals, benzene value chains, toluene chains, and vegetable oils. As a result, prices across the speciality chemical value chain had skyrocketed. Logistic challenges and rising input costs have added short-term margin pressure for specialty chemical players and this rising cost was passed on the customers to maintain the margins of the industries. Domestic players are marred by the resurging issue of container shortage and increasing freight charges apart from the rising input cost.
During Q1, 2022 the price of Benzyl Chloride surged upwards in the Asian continent starting at a price of USD 1196/ton CFR JNPT in the beginning of the quarter in India. A decrease of 4.8% was seen in the first quarter of 2022 as compared to the last quarter. The demand from downstream increased due to its rising uses in dyes, pharmaceuticals and perfumes. The prices of raw material toluene across the chemical industry surged globally due to ongoing war between Russia and Ukraine which was the driving force for the prices surging the value chain of these speciality chemicals.
The price of Benzyl Chloride surged upwards and followed an increasing trajectory in the first quarter ranging around USD 3540/ton FOB Rotterdam in Netherlands in the middle of Q1, 2022. With Netherlands contributing up to 6% of worlds total toluene exporting, the country observed an increase in demand from downstream plasticizers, dyes and photographic developers. The price increase was necessary due to the steep rise in raw material costs and the supply-demand tightness experienced throughout Q1 and continued logistic issues pushed the prices of Benzyl Chloride much northward. The stocks and inventories of Benzyl Chloride manufacturers have decreased leading to insufficient supply and production of the speciality chemical escalating the prices.