For the Quarter Ending June 2022
North America
The stable demand for the C9 Solvent from downstream agrochemicals, surfactants, emulsifiers, disinfectants, and other enterprises in the North American region caused the product's prices to be steady. Due to the ongoing war between Russia and Ukraine, Varying freight charges in the area supported the price trend. Constant prices of upstream feedstock Asphalt Residue due to the ongoing battle between Russia and Ukraine helped the price in the regional market with the traders. Logistical constraints affected the shipment and transportation, thus impacting the trade. The fluctuations in the global petrochemicals market affected the downstream market sentiments during the quarter, and the inventories were observed to be steady.
Asia
The prices of C9 Solvent surged in the Asian market during the second quarter of 2022 with a quarterly escalation of 5% in India, as recorded by Chem Analyst pricing team data. Surging product demand from downstream coatings, paintings, agrochemicals, surfactants, and automotive sectors supported the market upward. Escalation in the global freight charges due to the ongoing war between Russia and Ukraine put cost pressure on the product's prices in the regional market. The favorable crude oil price continued to support the fundamentals of the domestic asphalt market. At the same time, both the North and the South fell into supply shortages and intensely expanding demand. Due to tight supply, the sentiment of downstream supply is increasing. Road construction is gradually returning to normal as the weather improves, and requests will also be more open.
Europe
During the first week of June, C9 Solvent prices in Europe saw steady market trends. Local traders were hesitant as inflation, and Ukraine's situation increased. Additionally, shipping costs skyrocketed, further confusing them. After the Energy Information Administration announced an inventory drop of 5.1 million barrels for the week ending in May, crude oil prices increased even further. The inventories were stable, and market sentiments were in a wait-and-see mode with steady downstream demand. Reduced downstream demand on the domestic market contributed to the price reduction. The need for C9 Solvent has been significantly impacted by rising upstream crude prices and the region's ongoing, escalating geopolitical unrest. This quarter, it seemed like the traders were waiting and watching.
