For the Quarter Ending December 2022
North America
During this quarter, the Erucic acid markets in North America, Asia, and Europe were identical to one another. The primary cause of the price drop in the United States was the decreased demand for this product from paint and lubricant manufacturers for their production needs. The lower cost of rapeseed, the base material used in the production of this commodity, was another factor that contributed to the decrease in costs during this quarter. The price of this commodity also decreased as a result of a decline in export orders from Europe. As a result, there were sufficient quantities in stock, and suppliers were lowering their prices in an effort to boost sales.
APAC
This quarter, the Asia-Pacific market for erucic acid followed a similar pattern. In the case of China, the price of this product decreased in the first month; however, in November, the price increased due to the limited availability of this commodity in inventories as a result of lower domestic production and lower imports from Europe. In December, the price was lower than the price in October. Due to moderate demand from paints and lubricants manufacturing companies for downstream processing, the price was got lowered in this quarter. The lower prices of rapeseed, the product's base material, were another factor that contributed to the product's lower cost. During this quarter, the market for erucic acid in India was identical to China's.
Europe
In this quarter, markets for erucic acid in Europe also performed moderately. Numerous factors had a significant impact on this product's demand. According to market participants, both upstream and downstream businesses were worried about rising energy costs as a result of the ongoing conflict between Russia and Ukraine. As a result, they reduced their production, which resulted in a decrease in demand for this product. Suppliers, too, reduced their imports from the U.S. for the same reason. Due to the lowered cost of rapeseed, this product's price also got reduced. This commodity's exports to India and China significantly decreased as a result of the decreased production activities, which too contributed to the product's underperformance in the market this quarter.
For the Quarter Ending September 2022
North America
This quarter, the markets for Erucic Acid in North America also experienced the same trend as the markets in Asia-Pacific. The decrease in the price of rapeseed had a significant impact on this product's prices along with the strengthening of the US dollar. The prices of this product were also affected by the moderate demand for it from businesses downstream, and because of this, at times, the demand-supply ratio of this product remained stable.
APAC
In the Asia-Pacific region, the price of erucic acid had decreased. Erucic acid prices decreased in India for two primary reasons: the average interest exhibited by lubricants, paint, and downstream processing companies in this product and the lower prices of rapeseed, the base materials used in the production of this product. In the case of China, severe power shortages caused both upstream and downstream businesses to completely halt or reduce their production rates, resulting in the price drop of this product. The manufacturing activities and the price of this product were both affected by China's government's implementation of the zero covid strategies. Hence, erucic acid closed its market in China this quarter at USD 4,992 per MT on CFR – Shanghai basis.
Europe
European markets saw price reductions for erucic acid as well. Erucic acid demand was significantly influenced by several factors. Erucic acid demand was being impacted, according to market participants, by consumer concerns about inflation, the ongoing conflict between Russia and Ukraine, and an approaching energy crisis. In addition, supply chain delays made it difficult for customers to pass on ongoing cost increases. Because of these, downstream companies had to lower their production rates. Hence, in Germany, erucic acid closed its market this quarter at USD 6,085 per MT on FD – Hamburg basis.
For the Quarter Ending June 2022
North America
In North America, the price of Erucic Acid fluctuated throughout the Q2 of 2022, backed by mixed market sentiments. In the first half of Q2, the prices decreased due to a decrease in demand from the downstream industries. High inventories are present in the market, leading to a decrease in price, and ample stock is available to feed the consumer's needs. Moreover, in the second half of Q2, the prices were upward in the second month of the quarter due to limited stock and high consumption from the consumer's end. While in the second month, the prices were lowered again due to high inventories of raw materials, Rapeseed oil in the market, and the input cost also declined.
Asia Pacific
In Asia-Pacific Region, the price of Erucic Acid fluctuated throughout the Q2 of 2022, owing to mixed market sentiments. In the first half of Q2, the prices increased in the market in South Korea due to low inventories. The demand from the end-use industries was also high, especially from the lubricants and biofuels sectors, and the product unavailability triggered the market pressure for the product. Moreover, in the second half of Q2, the prices increased in India in the second month due to demand from the lubricants industries. Moreover, in the last month of the quarter, the prices were lowered in the domestic markets of India due to the surplus availability of the raw materials that is rapeseed oil.
Europe
In Europe, the price of Erucic Acid fluctuated throughout the Q2 of 2022 due to the unpredictable market dynamics. In the first half of Q2, the prices were increased in the first month due to high demand from the end-use industries, including plastics, lubricants, lacquers, and detergents. However, the prices were on a downward trajectory in the second month of the quarter, backed by a consistent increase in price, thus, decreasing the demand. Moreover, in the last month of the quarter, the prices increased due to the high input cost and the rise in raw materials, mainly rapeseed oil. Thus, the price of the product remained fluctuated throughout the quarter.
