For the Quarter Ending December 2023
The North American Di Ter Butyl Phenol market in Q4 2023 witnessed a relatively increased trend, with moderate supply and demand conditions prevailing. In October, the Di Ter Butyl Phenol maintained its increased pattern due to the feedstock rose which subsequently higher the production cost of Di Ter Butyl Phenol. Furthermore, the lubricant and fuel additive industry maintained a relatively stable and unchanging position in the market during this period.
In November, Manufacturers highlighted that the elevated prices of oil and oil-derived materials had contributed to higher operating expenses. Despite an observed improvement in demand conditions, the overall rate of growth remained marginal. Some companies continued to report a subdued sales environment, indicating that while there was a positive shift, it was not substantial. Despite the UAW strikes, there was an increase in auto sales in October, signalling a gradual upswing in demand for Di Ter Butyl Phenol within this industry.
In December, the growth in total new orders was primarily driven by domestic demand, while new international sales experienced a further decline. The Christmas and New Year holidays contributed to the marginal decline in the prices of Di Ter Butyl Phenol.
During the fourth quarter of 2023, the cost of Di-tert-butylphenol (DTBP) in the APAC region displayed a mixed trend. Despite a bearish trend in feedstock Phenol in the APAC region, the cost of DTBP initially increased at the beginning and mid-quarter. The demand from downstream industries such as lubricants and fuel additives remained moderate in the APAC region, influencing the cost of DTBP. However, in the later months of the quarter, the product price decreased. This decline was attributed to thin trading activities in the Asian market due to adequate supplies and weak market fundamentals for fresh stocks. Trades of Di-tert-butylphenol from Taiwan to India and other Asian markets slumped, with significant manufacturing units exercising caution regarding further increases in inventories. The higher product stocks and lackluster demand from downstream fuel additive and lubrication industries contributed to the declining price trend. Finally, the quarter ending price of Di-tert-butylphenol FOB Taipei in Taiwan was USD 1390/MT.
The Di Ter Butyl Phenol market in Europe experienced only marginal improvement during Q4 2023, maintaining a balanced market situation with moderate supply. The three key factors influencing the market were stagnant demand from the lubricant sector, surplus availability of material, and diminished demand from the downstream industry. In Germany, the market observed a phase of stagnancy characterized by sufficient supplies and subdued demand within the fuel additives and lubricant industry. Despite this, there was a slight increase in prices attributed to the rising costs of critical feedstock Phenol, escalating rates of upstream Crude Oil, and elevated energy prices. In the mid and final months, an inclining pattern was observed due to the rise in overseas market demand despite reduced domestic demand. The noticeable surge in demand, especially in the lead-up to the festive season, characterized by heightened consumer activities, including increased purchases in the automotive sector, played a significant role in driving this positive trend. During this period there were no plant shutdowns has been noticed.