For the Quarter Ending September 2022
The C10 markets in North America also experienced the same trend as the markets in Europe this quarter. The production activities were hampered by the summer vacation, which caused a labor shortage. Hence, agrochemical industries had to reduce their manufacturing activities, and paint companies limited their production rates. The moderate demand for this product from companies downstream also had an impact on the product's prices, which were influenced by the decrease in costs of upstream crude oil.
At the beginning of this quarter, the market for C10 solvent experienced a decline across the entire Asia-Pacific region, but it eventually recovered. There were several reasons why this product's price had dropped in China. The Asian crude oil market recession, which led to a drop in upstream crude oil prices and the provincial governments' enforcement of lockdowns, were the primary factors in the price reduction in the early days of this quarter. In addition, C10 solvent-using businesses in the agrochemical, paints, and printing domains were forced to completely halt or significantly reduce their production rates due to severe power shortages. However, the increased demand for this product for downstream processing caused the prices to begin rising from July 1st. India's market for C10 Solvent in this quarter was comparable to China's. The increased demand for this product from downstream industries to meet the festive demands for their end-products had an impact on the price of this product. Hence, C10 solvent closed its market in India this quarter at USD 1,497 per MT on an ex-Dahej basis.
Europe, in this quarter, saw a decline in the market of C10 solvent. The tight supply of natural gas and crude oil caused by the ongoing conflict between Russia and Ukraine significantly increased production and energy costs. Consequently, downstream businesses displayed only a passing interest in this product despite their extreme concern. In Germany and the Netherlands, the market for C10 solvents followed similar trends. The price drop in Germany was caused by the same factors that lowered the cost of this product in the Netherlands during this quarter.
For the Quarter Ending June 2022
In North America, the prices of C10 Solvent were stable during the second quarter of 2022 due to escalating demand from the downstream petrochemicals market. On the back of sluggish demand and limited offtakes from domestic buyers, C10 solvent prices tumbled across the Indian market, as expected. Under global market fundamentals, the Indian market was uncertain, leading major consumers to remain cautious about new offtakes. The niche market also remained muted as it had already anticipated a sluggish demand from the global market. Due to the dented demand from the domestic market, C10 prices have declined this month despite firm crude oil prices. While the domestic availability was sufficient to satisfy the country's overall needs, the Indian paint and coating industry has yet to regain significant momentum. The low availability of shipping containers also affected the price of C10 Solvent in the country, despite the smooth inflow of cargoes.
The prices of C10 Solvent fell in the Asian market during the second quarter of 2022, with a quarterly escalation of 5.1% in India, as recorded by Chem Analyst pricing team data. Refineries were aggressively driving up prices, the naphtha market was doing well, and there was more demand for terminal olefins and reforming. The naphtha market is trading well, refineries are actively boosting, and the need for reformed and terminal olefins has increased. In early May, the domestic asphalt market increased sharply after the festival; the price rose rapidly in an abbreviated time. The main reason is that international crude oil prices fluctuate at a superior level, consistent with the scale of the entire oil and gas industry chain. On the other hand, at present, the supply of some refineries is small, and the collection in the market is scarce. The asphalt futures market continued to rise, which also fuelled the bullish sentiment in the broader asphalt market.
The prices of C10 Solvent were observed to be stable in the European market during the second quarter of 2022, with ongoing fees of upstream feedstock Naphtha and fluctuating costs of Crude Oil. Fluctuating product demand from the downstream lubricants, adhesives, and oil sectors supported this trend in the regional market. The inventories were increasing, and a higher number of products were stockpiled with the traders and the suppliers as the consumption were steady. Disruption in supply chain values in the region due to the ongoing war between Russia and Ukraine affected the market sentiments. Freight charges were observed to be varying in the area.