For the Quarter Ending December 2022
North America
During the fourth quarter of 2022, the price of Benzyl Chloride fluctuated in the North American market, with the imports from Germany, Belgium, and Mexico to the United States of America plunging as per the region's supply situation and procurement. The inventories of the product were sufficient to meet the demands from the downstream dyestuff, pharmaceutical, and resin industrial sectors. However, feedstock prices (Liquid Chlorine) rose in the USA due to widespread Chlorine shortage and tight supplies. The drop in demand and purchase from downstream plasticizers and drugs market affected the market sentiments in the region. The declining price trend of Toluene has been attributed to the reduction in offtakes from the terminal sector coupled with tumbling upstream Crude Oil prices.
Asia
The market value of Benzyl Chloride plummeted in the Asian market during Q4 2022, with the pricing trend following a downward see-saw direction. The prices of Benzyl Chloride decreased in the Indian market with a weakening in the importing feedstock (Toluene and Chlorine) cost and plummeting demand from the downstream fertilizers industry. The imports of Benzyl Chloride were low from the exporting countries, which caused a shortage of products in the domestic market during the middle of the quarter and the imports of Benzyl Chloride were low from the exporting countries, which caused a shortage of products in the domestic market. Freight charges in India were observed to fall in the regional market relieving the cost pressure from the product by the end of the last quarter.
Europe
In Q4 of 2022, the market value of Benzyl Chloride oscillated stably within the European region. On the other side, feedstock Toluene prices have significantly dropped in the Netherlands. The market emotions of the Toluene makers have been impacted by the fluctuating upstream Brent crude oil price. Additionally, the upstream Benzyl Chloride market's purchase was slow and did nothing to support the price realizations of Toluene. Benzyl Chloride was readily available on the spot, and traders were selling it at comparatively low prices by the end of the quarter. The inventories were moderate to high, which was sufficient to meet the downstream demand from the pharmaceuticals and dyestuff industry.
For the Quarter Ending September 2022
North America
Q3 of 2022 saw a fluctuation in prices of Benzyl Chloride in the North American region. The imports from Germany, Belgium, and Mexico to the United States of America varied per the region's supply situation. Supply was disrupted during the end of the quarter when hurricane Ian impacted the Florida region of the USA. The downstream demand for the paints and coatings industry declined, further decreasing the prices of the product. Meanwhile, freight charges on US West Coast and East Coast have declined sharply during the third quarter as the US demand dynamics plummeted owing to soft consumer sentiment.
APAC
The prices of Benzyl Chloride were observed to be falling in the Asian market during the third quarter of 2022. Declining demand from downstream dyes and pharmaceutical industries affected the market sentiments, decreasing the consumption of products in the region. Varying freight charges due to the ongoing war between Russia and Ukraine during the beginning of the quarter fluctuated the prices. Falling prices of upstream feedstock Toluene and Liquid Chlorine impacted the prices of downstream Benzyl Chloride. The supply to the region was more as there was an abundance of shipments available. The inventories in the market were surging with the traders and the suppliers during the period. Benzyl Chloride hovered at INR 118500/ton Benzyl Chloride CFR JNPT.
Europe
During the third quarter, the prices of Benzyl Chloride fell in the European market as demand from downstream plasticizers, drugs, and dyes intermediate fell with lower consumption in the region. Due to this, the inventories were rising with the traders and the suppliers, causing a stockpiling of the product in the European regional market. The European stocks slipped from highs after Russia's Gazprom had cut natural gas supply and other supplies to the EU, which caused an energy crisis and impacted production in the plants within the European region. The freight charges fell within the inland waterways in the European domestic market, removing the pressure from the prices of the product.
For the Quarter Ending June 2022
North America
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.
Asia
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.
Europe
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.
