For the Quarter Ending June 2022
In this quarter, the cost of Chloroform slipped with succeeding months compared with the previous quarter. In June, the price of Chloroform was USD 709/ton FOB Los Angles in the USA. Eased back Petrochemical trading and high inventories among the significant ventures constrained the producers to give discounts to clear their current stocks. Hindered development and skeptical interest from downstream solvent enterprises decreased exports from the United States to South American and Asian suppliers. With the newly added Chloroform capacities in the region, the elevated prices slowed with low market sentiments. Low production costs and accelerating operating rates among the ventures kept the prices on the lower end.
Asia Pacific region
In Asia, the prices of Chloroform showed a mixed sentiment where prices slipped in April due to weak purchasing power and deterred demand, which muted the market fundamentals. In May, the prices surged due to forced Majeure at Westlake on Chlor alkali affecting the price trend. Oversupplies of Chloroform in the Chinese market forced the traders to reroute their cargoes to India due to healthy demand with revision in the price trend. Demand from the downstream solvent industry is firm on top of the increase in its utilization from end consumers. In June, the price of Chloroform in India slipped again with the cost of USD 545/ton Bulk Ex- Dahej.
In Q2 2022, the prices of Chloroform in April rose to USD 825/ton FOB Hamburg and surged to USD 827/ton FOB Hamburg in June. Chlor Alkali demand in the region increased this month with feedstock Chlorine, and the chlor Alkali market surged. Methane prices in the region remain trending this month with rising geopolitical disputes between Russia and Ukraine. Due to limited supply, downstream solvent industries operated cautiously according to the end user's needs. Tepid market purchasing and stably operating enterprises fluctuated the prices of the product. This month, exports from Germany and France to other European regions surged due to high purchasing rates and strong market sentiments.
For the Quarter Ending March 2022
In USA, strong market and insufficient supply surged the prices of Chloroform throughout the quarter. The US Chloroform market soared where the price in the starting of the quarter were USD 720/ton Ex-Texas. Overall, consumption recorded an inclined curve and showcased high demand from downstream solvents and paper industries. In terms of value, the production cost expanded sharply in the first quarter due to unavailability of the product and fluctuations in the feedstock Methanol prices. Exports to Argentina and Mexico from US were also increased with robust transportation cost. Major producers of Chloroform had also increased the prices for the domestic as well as international market. Russia-Ukraine conflict had impacted the price of the product in the second half of the first quarter with supply constraints in the Asian market.
In the first quarter, Chinese Chlor alkali had shown growth with increase in demand of Chlorine, Soda Ash which drove the growth of Chloroform in the domestic market. Shanghai Chlor Alkali Chemical Co. Ltd had also showcased remarkable growth with increase in production cost of Chloroform due to raw material shortage. In China, the price of Chloroform towards the end of the quarter was observed to be USD 824/ton. However, in India the sentiments were high in the first half of the quarter and muted in the second half. In the month of January, the prices of Chloroform in India were USD 603/ton. Tight supply from United States and China hampered the import market of India. Inventories at Hyderabad and Dahej were heard to be low which accelerated the price.
In Q1 2022, the cost of Chloroform in the European market flooded all through the quarter because of market snugness with ongoing conflict between Russia and Ukraine. Upstream Natural Gas and Methanol costs remained flooded. The stockpile of Natural gas from Russia was disrupted due to which supply/demand gap surged and squeezing profit from the downstream ventures affected the market. Increased demand of Chloroform in construction and paper sector and growing use as solvent elevated the price. Exports of Chloroform from Germany to Netherlands and to other European locale were expanded and significant producers had increased the cost for overseas suppliers. In this quarter, the cost of Chloroform surged by 8% when compared with last quarter. In January, the price of Chloroform were observed to be USD 860/ton FOB Hamburg.
For the Quarter Ending December 2021
In US, the prices of Chloroform were surged in October with increase in Feedstock crude oil and Chlorine prices. The price towards the end of the month was observed to be $590/ton Ex-Texas. The export from US to Mexico and other Asian countries boosted due to increase in demand and bullish demand from downstream solvent industries. In November, the prices of Chloroform surged even more with insufficient stocks for the market that the demand for the new one was surged. Towards the end of the year, in the last week, the Chloroform market of US was lagged due to New Year holiday which trafficked the Petrochemical trading activities and the market was dull. In December, the prices of Chloroform were observed to be $690/ton Ex-Texas.
In Q4, the demand was strong in the first half and was dropped in the remaining half. In India, Chloroform prices fell in towards the ending with the price of $752/ton levels CFR JNPT. The market performance has been running since the start of the winter season and there are limited enquiries from R-22 manufacturing. Other key supporters of the fall in price trend are sharp falls in both key raw materials-Chlorine and Methanol due to ample supplies in the domestic markets. Fall in upstream energy rates have also supported the fall in market prices. In comparison with the previous quarters the prices were observed to be high and moderate demand from downstream enterprises. In China, the prices of Chloroform were maxed on 29-October where prices were hovering around $996/ton FOB Qingdao-$1006/ton FOB Qingdao with robust demand and towards the end of the quarter the prices dropped down to $590/ton FOB Qingdao.
In Europe, the prices of Chloroform were remained affected in Q4 due to shortage of raw material Chlorine. Chlorine accessibility in Europe stayed short because of relative decrease in Caustic Soda operating rates because of high energy cost and environment crisis affecting the production of Chloroform. The force majeure by Vinnolit at its Caustic Soda plant additionally tumbled the accessibility of its Chlorine in the primary portion of the quarter finishing December. Albeit the accessibility began levelling out by late-November with resumption in the plant exercises, but costs of Chloroform stayed high because of high energy costs. In Germany, the prices of Chloroform towards the year end was observed to be $870/ton FOB Hamburg.
For the Quarter Ending September 2021
During Q3 of 2021, Chloroform market showcased mixed sentiments in North America. At the beginning of the quarter, Chloroform prices were sober due to the ample availability of the product while in the latter half, a modest rise was seen as the Ida hurricane disrupted the supply chain across the region. Additionally, a significant rise in the demand from the end user refrigerants and solvent segment coupled with the limited supply of feedstock Chlorine was witnessed that led to the increment in the prices of Chloroform in the US region.
In the Asia Pacific region, Chloroform market experienced an upward rally during Q3 of 2021 backed by the hike in the prices of feedstock Chlorine and Methane amidst the consistent demand from the end use industries. In India, in the beginning of the quarter, values of Chloroform skyrocketed reaching USD 555.69 per MT from USD 519.09/MT, showcasing the largest surge since the start of the year. An astonishing upward climb was majorly due the bullish realizations of Natural Gas under spate of production disruptions and surged freight charges along several trade routes connecting Asia. However, in September a slight drop in the values of Chloroform was with gradual ease in the trading activities.
In Europe, the overall price trend of Chloroform continued to stay strong due to the tight supplies as an impact of congestion on several ports in China during Q3 of 2021. Furthermore, surging prices of raw materials and expensive import rates due to the high freight charges as well as logistical issues led to the increment in the prices of Chloroform in Q3. However, demand from the downstream refrigerant segment remained muted amidst the upcoming low demand season.
For the Quarter Ending June 2021
During the second quarter of 2021, the regional Chloroform supply remained tight due to extreme feedstock Chlorine shortage reported by the key regional producers. Downstream industries recovered over Q1 due to the restoration of the industrial infrastructure in the US Gulf coast after remaining largely disrupted due to winter storm in Q1. The resumption of several producing units meant better availability of upstream Methanol. Offtakes from the downstream industries surged amidst the peak demand season from the building and construction sector during the second quarter. FOB Texas Chloroform prices in June were assessed around USD 700 per tonne.
Chloroform pricing trend in the Southeast Asian region showcased mixed results despite sufficient inventories of upstream Methanol and Chlorine. In India, the market was weighed under slow offtakes due to reduced industrial consumption amidst the partial lockdown to contain the spread of second COVID wave in India. Furthermore, weaker Chlorine eased Chloroform prices in the domestic market. Ex-works prices in South India were assessed at USD 500 per tonne in June. While in China, supplies were curtailed as Jinmao Chemicals went for a turnaround in May end, whereas Dongyue Chemicals operated at 60% efficiency and Luxi chemicals operated at 90% efficiency in the same period. Pricing trend of Chloroform in the Chinese domestic market remained firm amidst peak refrigerant demand season.
The supplies of Chloroform in the European region improved as production rates of feedstock chemicals were ramped up. Furthermore, the import market outlook was supported with the better volume offtakes from the downstream refrigerant chemical industries. The overall price trend remained strong due to bolstered demand and strong international pricing. Offtakes from the UK construction sector were strong than anticipated. Due to better demand and stronger margins, price of Chloroform remained firm for a larger part of Q2 in Europe.
For the Quarter Ending March 2021
The North American regional market was severely impacted during the first quarter of 2021, as the limited availability of the key feedstocks resulted in reduced production of Chloroform across the region. The industrial infrastructure in Texas and nearby Gulf region collapsed as it cannot sustain such low temperature amidst the region hit by the sub-zero temperature due to polar winter storm. Skyrocketing Methanol and Liquid Chlorine prices proportionally impacted the prices of Chloroform. Demand from the downstream refrigerant and pharmaceutical sector surged.
Chloroform market pricing trend in the Asia pacific region rose sharply, due to the tight supplies in the Northeast Asian region due to the decline in enterprise load and the low inventory levels. Moreover, the reduced throughput from the production unit amid the Chinese lunar New Year holidays also contributed to the supply crunch. Jinling plant in Shandong province in China announced 20 days planned turnaround in Mid-March. After the Chinese Lunar New Year Holidays Chloroform prices rose sharply taking cues from the hiked prices of key feedstock Methanol and Liquid Chlorine amidst the surge in demand from the downstream refrigerant due to upcoming peak season.
During the first quarter of 2021, the European Chloroform market remained affected by curtailed supplies due to production disruptions in the Northwest European region. The shortage of key feedstocks occurred as a repercussion of transportation lag and reduced imports from the USA. Olin's plant in Stade, Germany was on a planned turnaround in H1 of the quarter, whereas INOVYN scheduled a planned turnaround in March. Demand outlook surged as the offtakes were ample from the different downstream segments.
For the Quarter Ending September 2020
Chloroform supply across Asia lengthened by the end of the Q3 as Chinese inventories took a higher side by the end of Q2, thereby affecting the producers to manage the production levels. Price discussions of Chloroform in Northeast Asia gradually picked up after observing prolonged stagnancy in the past few months. Supply seemed to cope with the market expectations across Asia. Sources mentioned that firming feedstock costs were supporting the price hikes and the trend would be traced by other producers in the coming months. Aligning with the regional trend, CFR India chloroform prices were assessed around USD 385 per ton levels in end-September.
Chloroform supply gained the lost uptrend in Q3 2020. Production margins improved as KEM ONE’s Methylene Chloride plant at Lavera, France restarted after maintenance turnaround in Q2. Demand for Chloroform as a solvent from the pharmaceutical industries took a bullish trend. Players remained anxious after the lockdowns in some European countries extended amid fears of second coronavirus wave.