For the Quarter Ending June 2024
North America
The second quarter of 2024 witnessed a notable rise in Di-Ter-Butyl Phenol prices in the North American market. This increase was driven by supply constraints, caused by moderate to low manufacturing rates and intermittent labor shortages, which intensified the gap between demand and supply. Furthermore, strong performance in key downstream sectors, particularly paints and coatings, maintained the demand pressure on Di-Ter-Butyl Phenol prices.
In the construction sector, demand for Di-Ter-Butyl Phenol was bolstered by the robust activity that began with the Spring buying season. Construction projects nationwide saw a significant uptick, including rural highway repaving, freeway-style interchange construction, and safety enhancements aimed at addressing infrastructure needs and accommodating growing transportation demands. This surge in construction activity reflected efforts to meet increasing demands, maintain existing infrastructure, and expand transportation networks to support various modes of transportation.
Additionally, the hospitality sector showed positive signs, with the volume of hotel rooms under construction growing year-over-year for the first time since June 2023, indicating a gradual recovery. These factors collectively drove up the demand for Di-Ter-Butyl Phenol, an essential component in construction paints and coatings
APAC
In Q2 2024, the Di-Ter-Butyl Phenol market in the APAC region experienced significant upward price momentum driven by several key factors. The quarter was marked by robust demand from downstream industries such as plastics, rubber, coatings, and adhesives, exacerbating the supply-demand imbalance. Tightening supplies, accentuated by disruptions in the Red Sea region affecting imports, further fueled price hikes. Increased feedstock costs, particularly for phenol and tertiary butyl alcohol, compounded the pricing pressures. The overall bullish market sentiment was buoyed by high regional demand and supply constraints, with notable increases in freight charges and operational costs.
Focusing on India, the country witnessed the most pronounced price changes within the APAC region. The pricing environment reflected a positive trend, driven by steady demand growth and constrained inventories due to rapid consumption rates. The quarter saw a seasonal rise in prices, underscored by high demand from the pharmaceutical and construction chemical sectors. The price correlation remained strong, with a 7% increase from the previous quarter, and a 3% rise when comparing the first and second halves of the quarter. This trend was further influenced by limited imports from Taiwan, China, and Germany due to logistical issues and heavy rainfall affecting Asian ports.
The latest quarter-ending price for 2,6 Di-Ter-Butyl Phenol in India stood at USD 151700/MT CFR JNPT. The overall market sentiment was decidedly bullish, with a consistent increase in prices reflecting a positive pricing environment throughout Q2 2024.
Europe
In the second quarter of 2024, the Di-ter-butyl Phenol market in Europe underwent a significant transformation, marked by a pronounced increase in prices. This upward shift in pricing was driven by a confluence of impactful factors.
Key among these were supply disruptions caused by severe weather conditions, such as torrential rains and flooding, which adversely affected crucial industrial regions. These environmental challenges compounded existing constraints on production and logistics. Additionally, geopolitical tensions, particularly in the Red Sea region, exacerbated trade route disruptions, leading to strained supply lines and elevated freight costs.
The rise in production costs also played a critical role, fueled by increasing prices for input materials and broader macroeconomic pressures, including inflation. These factors collectively influenced the pricing landscape for Di-ter-butyl Phenol.
In Germany, despite experiencing fluctuations in demand, the market displayed an overall positive sentiment. The correlation between supply chain interruptions and price adjustments became evident throughout the quarter. Seasonal influences further complicated the market dynamics, with variations in construction sector activity affecting demand cycles and contributing to the observed price trends.
For the Quarter Ending March 2024
North America
The US market for Di-ter-Butyl Phenol (DTBP) witnessed a sluggish price trend during the first quarter of 2024 which started with a slow market trading offtakes due to low downstream demand from the lubricants industry as well as the low production costs.
During January 2024, the prices for DTBP declined as the market's demand decreased, owing to seasonal changes and a slowdown in industrial activity. Furthermore, the supply of DTBP remained moderate to abundant, resulting in surplus inventory and market saturation. Furthermore, poor economic conditions caused by inflationary pressures have slowed manufacturing sector growth, and as a result, the manufacturing Purchasing Manager Index has stayed in the contraction zone during January.
Fluctuating crude oil and feedstock Phenol prices added to the decreasing trend in prices. As a result, to maintain market equilibrium and limited demand from domestic regions, manufacturers in the United States have decided to lower their prices. Even throughout the spring, DTBP demand has not increased as expected. Moreover, the DTBP supplies were adequate, buyers were taken aback by producers' plans to raise prices.
APAC
In the first quarter of 2024, the Di-ter Butyl Phenol (DTBP) market demonstrated a generally bullish trend with significant price fluctuations across various regions. Initially, the prices in Taipei showed a robust increase, driven by sustained demand and tightening supplies, bolstered by support from rising crude oil prices and feedstock costs in January. The Consumer Price Index in Taiwan remained stable, suggesting a consistent economic backdrop that supported these price movements. In terms of supply, limited production during the Chinese New Year and disruptions in upstream production due to holiday breaks contributed to the supply constraints during February 2024. Furthermore, potential hikes in raw material costs, such as phenol and tertiary butyl alcohol pressurized the DTBP pricing structure upwards. Market dynamics in India also reflected a bullish sentiment due to a combination of increased freight charges, rapid consumption, and a positive Purchasing Managers' Index, indicating expansion in manufacturing activities and heightened new orders during March 2024. The price of DTBP in the region saw considerable increases on both FOB Taipei and CFR JNPT bases due to strong demand from the pharmaceutical, adhesives, coatings, and cosmetic industries during this timeframe.
Europe
The German market for Di-ter-Butyl Phenol (DTBP) witnessed a significant price surge in the first quarter of 2024. This key material, used extensively in the lubricants industry and fuel additives, experienced a cost increase that rippled through these downstream sectors. This increase in Phenol input costs has resulted in higher production costs for DTBP manufacturers, forcing them to change their pricing strategies. As a result, producers have kept prices high during the specified duration. On the other hand, attacks by Houthi rebels on commercial vessels in the Red Sea were another important driver of BTBP prices, as cargoes were forced to travel the longer, more expensive route, resulting in positive prices. Continued assaults by Iranian-backed Houthi terrorists in the Red Sea have disrupted shipping via the Suez Canal, which handles 12% of global container trade. Furthermore, geopolitical tensions between Israel and Hamas have driven commodity prices higher, increasing the manufacturing costs of downstream DTBP. Manufacturers have been dealing with supply-side pressures as operating rates have dropped. As a result, manufacturers have decided to keep their prices high to maintain profit margins.
For the Quarter Ending December 2023
North America
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.
APAC
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 latest price of Di-tert-butylphenol FOB Taipei in Taiwan at the quarter ending December 2023 was USD 1390/MT.
Europe
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.
