For the Quarter Ending June 2023
North America
The prices of Green Hydrogen in the US market have declined as of Q2. The decline in prices was due to weak demand from the downstream industry, like the fuel industry. Furthermore, there was an announcement of a $9.5 Billion investment for clean hydrogen from the president’s bipartisan infrastructure law, ongoing research, and development efforts across the federal government. Additionally, there was an adequate inventory level in the market to meet the demand from the downstream industry. Plants were operating at a weak rate due to weak demand from the downstream industry. Additionally, procurement of new orders was on need on-demand basis. Furthermore, Natural Gas prices decrement, causing decrement in production costs. Moreover, the rising interest rate created a pessimistic market view. Additionally, the international market demand has decreased, causing an overall pessimistic market view. Furthermore, there were weak offtakes and weak demand from the fuel industry. Thus, as of June end of Q2, the prices of Green Hydrogen were decremented to USD 3500/MT FOB California.
Asia
The prices of Green Hydrogen in the Indian market have shown mixed trends as the prices decremented in April and then the prices incremented in May and June. The trend can be explained by trends in energy prices, as Coal prices incremented in the last two months of Q2. Furthermore, demand from the downstream industry was constant but weak, which subdued market growth. Furthermore, plants were operating at a stable rate amid stable demand from the downstream industry. Furthermore, there was an adequate inventory level in the market as there was a stable flow of imports from the international market. In addition, there was a decrement in the demand for the fuel and green ammonia industry. Moreover, due to declining prices, there was hesitance in the market for procurement of large orders. Furthermore, Due to the high inventory level in the market seller offered a discount to increase market transactions as of April. Contrary, in the month of ssssssssssJune, there was firm and high demand which domestic and international markets.
Europe
There has been decrement in the prices of Green Hydrogen throughout Q2. This decrement was due to declining energy prices as LNG prices decremented throughout the second quarter. Furthermore, there was a free flow of cheap imports from the international market. Additionally, there was an adequate inventory level in the market to meet demand from the downstream industry. Additionally, there was a free flow of imports in the market, which led to high inventory levels in the market, and sellers were offering discounts to increase market transactions. Furthermore, PMI for Germany remained below 50 for the second quarter, which indicated a drop in the manufacturing sector. Plants were operating at a lower rate amid weak demand from the downstream industry. Furthermore, rising interest rates created negative market sentiments. Additionally, demand from the fuel industry has declined. Moreover, there was reluctance in the market for procurement for large orders. Therefore, as of June, the prices of Green Hydrogen in the Netherlands market were stated at 6822/MT DEL Rotterdam.
For the Quarter Ending March 2023
North America
Green Hydrogen prices shifted sentiments during the 1st quarter of 2023. At the beginning of the quarter, prices plunged noticeably amid a shift in demand-supply dynamics and a consequent increase in stocks. The trend persisted in the mid-quarter, and prices again fell in the region due to declined orders from the European importers due to the shifted interest of buyers towards conventional grey Hydrogen as it was available in excess quantity and at cheap costs due to the surplus availability of Natural Gas stocks. During the final month of Q1, prices rebounded amid affected production rates and increased orders from importers to reduce carbon emissions as chemical manufacturers are seeing the direct use of Green Hydrogen in fuel cracker furnaces rather than using Natural Gas.
Asia
The Green Hydrogen price trend showcased mixed sentiments in the Asian region during Q1 of 2023. Initially, the prices rose amid an increase in demand as the government focused on producing more green Hydrogen than conventional ones. The offtakes improved from the downstream industries and energy sector. However, price movement shifted during the mid-quarter, and prices remained stable amid stable offtakes and moderate consumption rates. Towards the end of the quarter, the upstream costs reduced with the temperature rise and eased the cost support. Simultaneously, orders for Green Hydrogen fell slightly from the energy sector with the arrival of the spring season.
Europe
In the European region, the Green Hydrogen prices dived during the Q1 of 2023. Initially, prices plummeted due to a decrease in upstream energy costs for electrolysis which eased the cost support. During the mid-quarter, the price trend improved slightly as the demand was consistent from the energy sector. Towards the end of 1st quarter, downstream Green Ammonia prices fell amid depressed demand from fertilizer producers during the quarter amid the shifted interest of buyers towards conventional grey Hydrogen as it was excessively available and at reduced costs due to the surplus availability of Natural Gas stocks. In the final month of Q1, prices again plunged amid weak offtakes and surplus supplies.
