For the Quarter Ending June 2022
Heavy Aromatic Naphtha Solvent prices were stable at a higher level in the North American region during the second quarter of 2022 as per Chem Analyst monitoring data observations. Combined with the arrival of the peak summer driving season in the United States, demand should improve, and supply and demand fundamentals remain positive for oil prices. In the traditional peak season of crude oil consumption and the season of extreme weather such as hurricanes, crude oil tends to reach new highs, and international oil prices continue to rise. The inventories were steady with the traders in the regional market during the period.
Despite supply disruptions in Libya and the prospect of further reductions in Russian oil supplies, crude oil prices rose on Thursday. Asian demand may improve following lower light sour crude prices, spurring pockets of buying interest from regional refiners. Surging prices of upstream feedstock Crude Oil supported the upward movement of Heavy Aromatic Naphtha Solvent prices in the Asian region during the second quarter. Escalating demand for the product from the downstream lubricants, greases, adhesives, sealants, polishes, and waxes put cost pressure on the product. With a quarterly escalation of 9.2% in India, as recorded by Chem Analyst pricing team data, the inventories were observed to fall with rising demand.
The European market saw a stable surge in Heavy Aromatic Naphtha Solvent prices during Q2 of 2022, with fluctuating demand from the downstream market. The market sentiments fluctuated due to the ongoing war between Russia and Ukraine, pushing prices downwards in the regional market. The traders were confused with the freight charges, which created chaos during the period. Disruption in supply chain values affected the market, which indirectly affected the costs of the product. The product consumption and the downstream market trade increased, decreasing the inventories and lesser products being stockpiled with the suppliers.
For the Quarter Ending March 2022
Heavy Aromatic Naphtha Solvent prices in the North American region have stayed buoyant throughout the first quarter of 2022 on the back of soaring upstream crude value. The increased raw material costs became a burden when the West Texas Intermediate (WTI) crude prices reached their record heights, costing more than USD 123 per barrel on March 8th, pressuring the downstream solvent players. To sustain their margins, the regional manufacturers implemented frequent price revisions in the region. However, stable demand fundamentals kept the Heavy Aromatic Naphtha Solvent prices from rising further in the domestic market. Accordingly, the United States price discussions for the solvent closed between USD 910 per MT towards the quarter ending March.
Taking pressure from skyrocketing upstream crude value, Heavy Aromatic Naphtha Solvent prices traced uphill during the first quarter in the Asian market. Rising crude oil value has been a matter of concern for all the downstream players, as it’s triggering a precipitous rise in prices of various commodities, including Heavy Aromatic Naphtha Solvent, across regional market. Meanwhile, demand fundamentals for the product with the increasing technological advances in the automotive sector have encouraged this uptrend across the regional market. Conclusively, the Chinese Heavy Aromatic Naphtha Solvent prices in Asia were sky high by mid-March, which later traced downhill and was assessed as USD 1320/MT in the quarter-end.
During the first quarter, the Heavy Aromatic Naphtha Solvent prices remained strong taking support from the soared upstream value. Crude oil began the year on a firm note while prices were assessed as USD 80-90 per barrel. However, Russia’s invasion of Ukraine aggravated market dynamics worldwide. Consequently, Brent crude prices went haywire, touching USD 128 per barrel in March. Thus, the derivative Heavy Aromatic Naphtha Solvent prices in the regional market broke charts this quarter, and production costs increased substantially. At the same time, the solvent supplies were tightened in the downstream Automobile sector. Hence, after the conclusion of the first quarter of 2022, solvent prices including Heavy Aromatic Naphtha witnessed a hike of 8-12% across the European market.
Significant fluctuations have been observed for Heavy aromatic naphtha solvent across US market during Q4 2021. Demand fundamentals maintained overall stability throughout the quarter, while rising input cost kept on pressuring domestic convertors. It was observed that price rose effectively during October and November, on the back of high upstream crude oil value amidst consistent escalation in domestic demand pattern. Furthermore, Crude oil value tumbled effectively during the November, consequently naphtha solvent also went down initially during December and later started rising inline upstream cost. Conclusively, Heavy Aromatic Naphtha Solvent kept on oscillating throughout the quarter and an increment of around 3% was observed during October-November month in US market, where prices fluctuated between USD 800/MT to USD 850/MT across the region.
Mixed market sentiments were observed for Heavy Aromatic Naphtha Solvent across Asian market during this quarter. Marginal fluctuations were observed for Heavy Aromatic Naphtha Solvent in India throughout Q4 2021, as the demand form the domestic market remained stable from the downstream sector till November, which later decline during December due to demand dullness induced after festivities in India. Heavy Aromatic Naphtha Solvent revolved around USD 3922/MT during October. Meanwhile, Chinese market witnessed ample availability for the product across domestic market throughout this period, while demand fundamentals also remained marginally dull after imposed production cuts in the country.
Naphtha solvent demand across European market remained stable throughout the quarter, as the market heard going through a consistent bounce back in economic activities. Furthermore, enormous surge in energy cost remained a major concern for key players, as despite of easing crude value production cost getting expensive week over week in the regional market. In addition, logistical issues also remained persistent during this timeframe, which eventually resisted the actual economic growth of the region. However, traders heard seeking cheaper cargoes from regional market in the meantime, to counterbalance the overall supply issue. Conclusively, prices heard hovering around USD 915/MT during November in European market.