For the Quarter Ending June 2024
North America
In the second quarter of 2024, the Hydroquinone market in North America experienced a notable price increase. This upward trend was primarily attributed to a surge in demand from end-users, rising production rates, and heightened manufacturing costs. The market faced additional pressure due to supply constraints caused by plant shutdowns at major facilities, such as those operated by Royal Dutch Shell, which led to a shortage of upstream materials like phenol. Environmental factors, including potential disruptions in transportation routes due to adverse weather conditions, further contributed to market volatility.
In the United States, where price changes were most pronounced, the pricing environment remained robust throughout the quarter. Hydroquinone prices saw a consistent rise, driven by seasonal demand fluctuations and increased operational expenses. Strategic bulk procurement measures adopted to mitigate supply chain disruptions played a significant role in reinforcing the upward price momentum. The average quarterly price increase was 1.67%, reflecting sustained market confidence and effective inventory management strategies.
By the end of the quarter, the Hydroquinone (Photographic Grade) FOB Houston price had reached USD 4,600 per metric ton. This figure highlights a stable yet progressively positive pricing sentiment, influenced by persistent demand and supply constraints. Overall, the quarter demonstrated the market's resilience, underscoring the positive pricing environment amidst ongoing supply challenges and proactive procurement efforts.
Asia
In Q2 2024, the Hydroquinone market in the APAC region experienced a marked upward price trend, driven by increased input costs, rising feedstock prices, and elevated production expenses. The market faced additional pressure from supply chain disruptions, including planned plant maintenance outages, which led to a tighter supply amidst growing demand. This dynamic was further compounded by a seasonal increase in end-user industry requirements, reinforcing the upward trajectory in Hydroquinone prices.
In Japan, where the most significant price adjustments occurred, the Hydroquinone market demonstrated a robust bullish sentiment throughout the quarter. Elevated prices reflected broader manufacturing trends, with heightened production activities and strong international demand playing crucial roles. Seasonal fluctuations aligned with Japan's economic cycles, leading to intensified procurement activities as market participants engaged in bulk purchases to safeguard against potential supply chain disruptions. This interplay of increased demand and constrained supply was particularly pronounced in Japan, highlighting strategic inventory replenishment efforts.
Concluding the quarter, the average price of Hydroquinone (Photographic Grade) FOB Iwakuni in Japan reached USD 5365/MT, marking a 0.69% increase from the previous quarter. This consistent price rise underscores the market's resilience amid escalating production costs, supply constraints, and seasonal demand peaks, reflecting a positive pricing environment for the sector.
Europe
In Q2 2024, the European Hydroquinone market demonstrated a generally stable yet complex pricing trend. Prices initially rose at the start of the quarter but began to decline from the second month onward. April saw a brief resurgence in France due to increased inquiries from downstream sectors and a heightened interest in purchases. This uptick was further influenced by geopolitical tensions in West Asia, particularly Iran’s actions towards Israel, which introduced additional uncertainties into global trade routes crucial for Hydroquinone. The threat of potential disruptions in the Persian Gulf and environmental issues such as low water levels in the Mississippi River exacerbated logistical challenges and elevated transportation costs.
The latter part of the quarter witnessed a shift as reduced production costs enabled producers to offer more competitive rates, which alleviated some of the upward pressure on global prices. Additionally, the liquidation of surplus inventories aimed at mitigating storage costs and risks further contributed to a surplus in supply, exerting downward pressure on prices. This trend was supported by a weak demand from downstream sectors, compounded by higher freight costs and subdued purchasing activity.
France, a pivotal player in the Hydroquinone market, reflected significant price changes, showcasing an overall negative trend for Q2 2024. Despite a minor price increase of 0.06% during the quarter, the consistent downward trajectory was evident, with the closing price for Hydroquinone (Photographic Grade) at USD 6100/MT FOB Le Havre. The market dynamics were influenced by seasonal variations and a pronounced imbalance between supply and demand, resulting in a bearish sentiment that persisted through the quarter. The Hydroquinone market in France thus exhibited a largely negative pricing environment in Q2 2024, marked by significant price decreases and influenced by global supply dynamics, inventory liquidation, and weak downstream demand.
For the Quarter Ending March 2024
North America
Throughout the first quarter of 2024, there was a noticeable decline in the pricing of Hydroquinone. In the North American region, prices fluctuated, culminating in a 0.92% decrease in March 2024, reaching USD 4380 per metric ton FOB Le Houston.
The North American Hydroquinone market experienced significant price shifts in the initial months of 2024. Initially, prices dropped due to local manufacturers and suppliers stockpiling excessively, decreased demand from downstream industries, and limited import opportunities. Concerns about oversupply exacerbated the downward trend as reduced demand domestically and internationally led to higher inventories in exporting nations. European market participants adjusted their pricing strategies to stay competitive, and lower freight charges further contributed to a weakened and more consolidated market environment. Additionally, lower raw material prices, particularly for phenol, complicated pricing dynamics for Hydroquinone.
However, prices began to rise steadily in March due to robust demand from both exporting and importing regions, leading to increased production costs. This surge in demand was fueled by significant orders from market players striving to meet growing market needs, while domestic replenishment activities also supported the upward price trend.
Asia
The APAC region's Hydroquinone market in Q1 2024 has experienced a mix of price changes influenced by various factors. The overall trend for Hydroquinone pricing in the region has been a steady depreciation, with some fluctuations observed in specific countries.
In China, the market has seen price changes, with quarterly prices depreciating by 7.33% in March 2024, recorded at USD 4600/metric ton CFR Shanghai. In Q1, the Chinese Hydroquinone market experienced a decline in prices after initially showing a slight upward trend. This drop was influenced by various factors, including the Spring Festival and Lunar New Year closures, labor shortages in Hydroquinone-producing factories, and surplus Hydroquinone supply. To clear inventories before the holidays, suppliers adopted aggressive pricing strategies with significant discounts. Additionally, logistical disruptions and upstream dynamics like sulfuric acid supply also impacted Hydroquinone prices. As the market reopened in March, there was an excess of Hydroquinone supply, leading suppliers to further lower prices to meet destocking goals. Normalization of freight charges and increased trade activities in March due to reduced charges heightened market competition, contributing to the continued pricing decline.
In Japan, prices initially decreased due to the devaluation of the Japanese yen against the USD. There was an excess supply of Hydroquinone, leading suppliers to lower prices to clear surplus inventory by offering discounts for bulk purchases. Freight charges normalized, reducing costs. In Japan, the market has seen quarterly price depreciation of 4.15%, with prices recorded at USD 5255/metric ton FOB Iwakuni.
Europe
Throughout the first quarter of 2024 the pricing pattern for Hydroquinone showcase depreciation trend. In Europe, the market experienced fluctuations in prices, with a 1.94% decrease in quarterly prices observed in March 2024, recorded at USD 6095 per metric ton FOB Le Havre (France).
The European Hydroquinone market underwent a dynamic phase in the first quarter of 2024, characterized by significant price shifts. Initially, the decline in prices was attributed to excessive stockpiling by local manufacturers and suppliers, coupled with reduced demand from downstream industries and diminished import prospects. Concerns about oversupply also influenced the downward price trend, as reduced demand domestically and internationally resulted in higher inventories in exporting countries. Market participants in Europe adjusted their pricing strategies to remain competitive, while lower freight charges further contributed to a weakened and more consolidated market environment. Moreover, the decline in raw material prices, notably phenol, impacted the manufacturing costs of Hydroquinone, adding complexity to pricing dynamics.
However, prices began to rise steadily by March due to robust demand from both exporting and importing regions, leading to increased production costs. This heightened demand was driven by substantial orders from market players aiming to meet growing market requirements, while replenishment activities in the domestic market also supported the upward trend.
For the Quarter Ending December 2023
North America
The pricing of Hydroquinone in the North American region witnessed a downward trend in the fourth quarter of 2023, influenced by various factors. Primarily, prices experienced a significant reduction due to diminished demand both domestically and internationally. This decline was triggered by a decrease in inquiries from downstream industries and the accumulation of surplus inventory among suppliers. Furthermore, the market was impacted by lower prices of the raw material Phenol and challenges in efficient inventory management.
Moreover, the insufficient cost support from upstream Benzene failed to drive Phenol prices to higher levels. Recent reports from the US Energy Information Administration (EIA) indicated a slightly lower-than-expected increase in crude oil production in the country, along with an anticipated decline in demand. This reduction in crude oil prices exerted downward pressure on the pricing dynamics of downstream petrochemicals, including Phenol and Hydroquinone.
The United States witnessed a noteworthy decrease in Hydroquinone prices, averaging a quarterly decline of 6.26%. This was driven by reduced demand and the accumulation of surplus inventory. The current quarter's price for Hydroquinone (Photographic Grade) FOB Houston in the US stands at USD 4505/MT. To address the excess supplies, market players strategically destocked their inventories at lower quotations and reduced margins to clear existing stock.
Asia Pacific
In the final quarter of 2023 (Q4), the Hydroquinone market in the Asia-Pacific (APAC) region encountered various challenges, leading to price fluctuations. The trajectory of Hydroquinone throughout Q4 has been notably pessimistic, marked by a series of challenges that have overshadowed the industry. In conclusion, the quarter-ending price of Hydroquinone (Photographic Grade) CFR Shanghai in China was USD 5850/MT. The top three factors affecting the market were a sluggish Chinese economy, reduced demand from downstream industries, and an oversupply of Hydroquinone in the local market. These factors resulted in a price decrease, with the market struggling to strike a balance between supply and demand. Additionally, ongoing economic uncertainties and weakened foreign demand further contributed to price volatility in the region. Hydroquinone prices in China decreased by an average of 3.08% quarterly. This price fluctuation can be attributed to factors such as reduced demand from downstream industries, stable raw material costs, and destocking of existing inventories. The consequence has been a surplus of Hydroquinone, prompting producers to take drastic measures to clear inventory and navigate challenging market conditions. The most immediate impact of this oversupply has been a downward trend in prices, posing a considerable threat to the profitability of Hydroquinone producers, particularly those burdened with higher production costs. The significant surge in Hydroquinone production in the exporting region preceding this has intensified market competition, forcing producers to grapple with reduced prices and seek innovative strategies to differentiate their products. Further complicating the situation, the simultaneous drop in raw material prices, specifically Phenol, during the same timeframe has added another layer of complexity to the pricing dynamics for Hydroquinone.
Europe
The Hydroquinone market in Europe encountered various challenges during the fourth quarter of 2023, resulting in price fluctuations. A primary factor contributing to market volatility was the diminished demand, both domestically and internationally. This decline in demand was driven by factors such as cautious procurement practices, reduced consumer preferences, and a general weakness in downstream industries. Global economic deceleration and elevated inflation also influenced market dynamics, leading to tighter financial conditions and decreased investment appeal. In France, Hydroquinone prices notably declined due to reduced demand and surplus inventory among suppliers. The country experienced a decrease in crude oil production, coupled with an anticipated decline in demand, putting downward pressure on Hydroquinone prices. Additionally, the prices of the raw material Phenol remained low in the domestic market, influenced by moderate inquiries from downstream industries and insufficient cost support from upstream Benzene. However, prices increased by more than 1% in December due to heightened demand, putting pressure on existing supply chains and causing a ripple effect on prices. The escalating global freight costs played a crucial role in influencing Hydroquinone market dynamics in France. The current quarter's price for Hydroquinone (Photographic Grade) FOB Le Havre in France is USD 6480/MT, showing an average quarterly appreciation of 0.34%.
For the Quarter Ending September 2023
North America
The North American market for Hydroquinone has witnessed a significant depreciation in the third quarter of 2023. From July to September 2023, the FOB Houston prices for Hydroquinone saw a decline, going from $ 7180 /mt to $ 5360 /mt, marking the end of the third quarter. This price fluctuation clearly indicated a preference for reducing price levels, resulting in an average quarterly decrease of 8.82%. The global Hydroquinone market, during this period, found itself amidst an oversupply predicament, which in turn triggered a noticeable drop in market value. Adding to the complexity, domestic traders strategically accumulated substantial inventories of Hydroquinone. To mitigate potential losses, these traders opted for a tactical move by lowering their price quotes, further driving down overall market prices. While the third quarter did witness a modest slowdown in inflation, mainly due to significant economic shifts in the United States, market participants remained vigilant due to the Federal Reserve's decision to raise interest rates. The decrease in Hydroquinone prices can be largely attributed to a substantial reduction in the cost of its primary raw material, Phenol. The cost support from upstream Benzene was also limited as its prices didn’t undergo any significant changes. Conversely, the notable rise in U.S. crude exports during 2023 is exerting downward pressure on oil prices in Europe and Asia. This surge in exports is proving to be a crucial supply source at a time when producers are reducing their output and sanctions on Russian crude are causing disruptions in trade flows. This factor played a crucial role in influencing the manufacturing cost of Hydroquinone in exporting countries.
Asia Pacific
In the third quarter of 2023, the hydroquinone market has witnessed a significant and favorable shift. Prices declined from $ 7430 per metric ton in July to $ 6450 per metric ton CFR Shanghai in September. This price fluctuation indicated a significant change, resulting in an average quarterly drop of 4.47%. A key factor contributing to this change is the substantial decrease in hydroquinone prices, driven by a notable reduction in raw material costs, specifically in Phenol, within the domestic market of the exporting countries. The backdrop of this price reduction has been shaped by the economic landscape, notably in China, the world's second-largest economy. The Chinese economy experienced a slowdown that extended from the first half of 2023 into the second half, casting a shadow over the start of the third quarter. This deceleration can be attributed to a combination of factors, including increased deflation, a surge in youth unemployment, and weakened domestic demand. Adding to this dynamic, the Chinese market, as a major importer of hydroquinone, and Europe, as a leading exporter, have closely followed the pricing trends of the European market. As a result, this price decrease is reflective of the broader global market dynamics.
Europe
In the third quarter of 2023, we witnessed a significant shift in the pricing landscape of hydroquinone, with a slight drop from $ 7375 per metric ton in July to $ 6415 per metric ton FOB Le Havre by September. This pattern indicated a significant price decline, resulting in an average quarterly decrease of 6.46%. This change was primarily spurred by a global oversupply of Hydroquinone, which had a profound impact on its market value. Adding to the complexity of the situation, domestic traders opted to build substantial inventories of Hydroquinone. To navigate this challenge and curtail potential losses, they strategically decided to decrease their price quotes, effectively contributing to a broader market devaluation. The notable decrease in Hydroquinone prices can be linked to a significant reduction in the cost of its primary raw material, Phenol. This pivotal shift influenced the overall manufacturing cost of Hydroquinone in exporting countries, thereby driving prices lower. In terms of manufacturing, hydroquinone production in China has been closely tied to customer demand, adapting to market dynamics. During this period, a decrease in demand was observed, not only domestically but also from international markets. This synchronized drop in demand further bolstered the market dynamics in the third quarter.
For the Quarter Ending June 2023
North America
In the second quarter of 2023, Hydroquinone prices in the US market fell significantly due to sporadic fluctuations between supply and demand during the month. The fundamentals of market trade had been impeded by sluggish demand and large inventory levels. Additionally, the trend of depreciated pricing was strengthened by falling raw material phenol prices across the world. Due to high inflation, retail sales decreased. Retailers are also dealing with bloated warehouse inventory that they ordered during the epidemic to meet the surge in demand, even if demand remains flat. The price was valued at USD 7240/ FOB Houston as of the end of Q2 2023, with an average quarterly declination of 2.23%. Reduced freight costs were another factor that helped the weak trajectory. As American businesses struggle to get rid of their large inventory, import volume has decreased. At the main US container ports, the volume of imported goods decreased as well. Moreover, despite stagnating demand, retailers are facing bloating inventory ordered to meet increased demand and potential future shortages during the pandemic.
Asia
The market price of Hydroquinone declined significantly in the second quarter of 2023, driven by weak domestic and international demand. The price was valued and acquired at USD 7415/MT FOB Shanghai as of the end of Q3 2023, with an average quarterly decline of 6.15%. During the quarter, the PMI fell below 50 points, suggesting that the manufacturing sector was contracting. China's import and export activities were mixed. Exports decreased by 3.9% from the previous year, while imports increased by 1.9%. As negotiations progress, the Chinese market for the Hydroquinone price chart for CFR Shanghai has shown a weakening price trend. Due to the large inventory of Hydroquinone in warehouses, suppliers had to lower their prices to clear existing stocks. In addition, this price trend was essentially supported by the decline in sales in the end-user sectors, and there were no new inquiries from domestic and international suppliers. The prices of raw materials used to make Hydroquinone, such as Phenol, also fell during June. This also contributed to the price drop. Meanwhile, the Chinese government has taken measures to cool the economy, such as raising interest rates and curbing the money supply. Furthermore, market sentiment remained subdued due to declining buyer hunger, slowing sales from downstream industries, and a lack of new inquiries from domestic and foreign suppliers. Some market participants have reduced inventories of Hydroquinone APIs to reduce inventories and improve cash flow.
Europe
The demand for Hydroquinone API declined in the second quarter of 2023, resulting in a decrease in market prices. Hydroquinone prices fell 5.76% on average over the quarter to USD 7845/MT FOB Le Havre. Hydroquinone prices in Germany were on a downward trend as demand from downstream sectors and imports from exporting countries such as China and India slowed. The supply of Hydroquinone has increased due to the expansion of production capacity in India, the world's largest producer of Hydroquinone. This has led to an increase in the supply of Hydroquinone on the global market. However, the demand for Hydroquinone has decreased due to the slowdown in the global economy. Additionally, speculators have been selling Hydroquinone futures contracts in anticipation of lower prices in the future, which has also put downward pressure on prices. Also, the government relaxed some of the regulations on the import of generic drugs, which led to an increase in the availability of generic versions of Hydroquinone. The price trend of Hydroquinone is significantly impacted by weak purchasing momentum and overflowing stocks. Tariffs between China and the West Coast of the United States recently reached pre-pandemic levels, greatly reducing congestion and lowering sea freight prices, impacting overall market conditions.
For the Quarter Ending March 2023
North America
In the first quarter of 2023, the Hydroquinone market witnessed a price-decremented trajectory in the North American region. Prices were witnessed to be on the positive side till the termination of the first month of Q1 2023 because of consistent domestic demand, according to market fundamentals. The prices were accessed at USD 7750/MT FOB Houston with an average quarterly declination of 8.01%. Later with the commencement of February, the prices started to roll down with the declining freight charges in the exporting countries. Also, Hydroquinone prices fell in the USA because of fewer end-user sector purchases. With enough inventories and ample stocks among the merchants supported the decreased price trajectory.
Asia
The market prices for Hydroquinone relinquish significantly in the first quarter of 2023 as a result of a decline in demand from the downstream food, pharmaceutical, and healthcare industries. The prices were accessed at USD 8985/MT CFR Shanghai with an average quarterly declination of 11.23%. The fact that domestic retailers had ample inventories among themselves also influenced the market scenario negatively. The price of Hydroquinone decreased following a continuous decline for several months because of a shift in consumer attitudes towards the drug. The adjustment was supported by end-user industries' weak purchasing power. Also, the fright charges declined sharply to many folds in supporting the rolling down trajectory.
Europe
In the first quarter of 2023, the prices for Hydroquinone in the European market showcased a decreasing trajectory. At the termination of the first quarter of 2023, Hydroquinone values were accessed at USD 9385/MT FOB Le Havre with an average quarterly declination of 1.61%. With the commencement of Q1 2023, the prices remained on the higher end on the back of recent occurrences like the conflict in Ukraine and the ripple effects it had on global supply chains supported the market trend of Pharmaceutical API. Also, new production activities and high manufacturing rates in order to serve then large orders from the domestic as well as the overseas market further supported the rising trajectory. Later with the onset of February, it was observed that the pharmaceutical industry had minimal demand for Hydroquinone. The market for Hydroquinone API was also restrained by a drop in domestic inquiries. Also, the market was kept calm by the resumption of higher trade flows in Europe. Decreased freight charges also influenced the market prices. Also, the decrease in feedstock phenol prices globally further supported the negative trajectory. Enough inventories among the market payers supported the negative market situation in France.
For the quarter Ending December 2022
North America
In the Fourth quarter of 2022, Hydroquinone witnessed fluctuating market trends in the North American region. At the commencement of Q4 2022, the prices were recorded to increase until the second month of Q4 due to a high production rate, several logistic issues, and rising inflation. The positive support from the upstream feedstock Phenol and Hydrogen Peroxide also influenced the Hydroquinone market. Also, the blooming transportation cost and port congestion in the major ports kept the market situation robust. Furthermore, disorganization and slowdown in the production of API, along with rising energy costs, influenced the market positively. Later in December 2022, the prices fell on the back of ease in the inflation and lowering demand from the end-user sector. At the termination of Q4, the prices accessed were USD 10850/MT CFR Houston with an average quarterly inclination of 0.53%.
Asia
In the Fourth quarter of 2022, the Hydroquinone market stabilized in the APAC region. At the commencement of Q4 2022, the prices were recorded to increase in the first month of Q4 due to several factors, including increased input cost, high production rate, and several logistic issues. Also, the Consumer price index rose at the end of the last quarter of 2022, impacting the market situation. In addition, the positive support from the upstream feed Phenol also influenced the market. With the commencement of the second month of Q4 2022, Hydroquinone witnessed stabilization in the market activities keeping the prices firm with slight fluctuating on the lower end on the back of consistent demand and ease in the feedstock Phenol prices globally. The prices of Hydroquinone were recorded to be USD 13250/MT CFR Shanghai with an average quarterly inclination of 0.52%.
Europe
The market situation for Hydroquinone showcased a deflation throughout the Fourth Quarter of 2022. The prices of Hydroquinone were accessed at USD 9980/MT CFR Le Havre with an average quarterly declination of 1.67%. With ease in the shipments and transportation activities, the market showcased feeble sentiments. Also, relief of the port congestion in the major ports of Europe continues to facilitate an unhindered supply chain keeping the market weak. Low input costs and a significant decrease in feedstock Phenol and Hydrogen Peroxide prices negatively impacted Hydroquinone prices. The annual inflation rate in France slowed to 5.9% in December of 2022 from 6.2%, keeping the market situation feeble.
For the Quarter Ending September 2022
North America
The Hydroquinone market showcased a downward trajectory throughout Q3 2022. The Hydroquinone API followed the truncated market sentiments owing to low to no demand in the US market from the downstream industries. The domestic merchants stated to have enough existing inventories to cater to end-user consumer demand. Also, the currency fluctuation in the US market affected the Hydroquinone API values. Furthermore, the stabilizing feedstock benzene and phenol prices kept the market feeble. At the termination of Q2, the values accessed were USD 10690/MT with a quarterly declination of 1.54%
Asia
In the third quarter of 2022, Hydroquinone API prices significantly increased in the APAC region. At the commencement of the first half of Q3 2022, the ongoing production halt and extreme weather conditions inflated the Hydroquinone API market. The Hydroquinone API market also experienced price increments owing to a significant decrease in feedstock benzene and phenol following the tight supply of upstream Crude due to the sanctions on Russian imports influencing the Benzene market. Hence, following the skyrocketed upstream crude price, the Benzene price trend also increased across the region. At the termination of Q3, the prices of Hydroquinone were recorded to be USD 13050/ton CFR Shanghai with an average quarterly inclination of 5.79%.
Europe
Hydroquinone API values witnessed stable market dynamics in the European market. From the beginning of Q3, the costs of Hydroquinone API were recorded to rise with a gradual hike till the second month of Q3 due to increased feedstock product benzene values followed by sanctions imposed on Russian imports. Also, the persistent soaring of fuel prices and the disruption in shipments led to delays in trade, impacting the feedstock and hydroquinone values in the European market. Also, domestic merchants were restocking their inventories. Later with the start of the third month of Q3, the price fell drastically, owning to decreased downstream demand and stabilizing feedstock prices, keeping the market feeble. Towards the end of Q3, the values were recorded at USD 10500/ton FOB Le Havre (France), with an average quarterly declination of 0.36%.
For the Quarter Ending June 2022
North America
The Hydroquinone market showcased a peak rise in the first half of Q2 2022, followed by a price stabilization by the end of quarter-June 2022. Owing to the geopolitical tension (Russia Ukraine war), the upstream Crude price hike affected the feedstock benzene market globally. Also, increased freight charges and rising demand from downstream industries influenced the price of Hydroquinone to surge. Towards the second half of Q2 2022, ease in freight charges and shipments resurgence of the hydroquinone market showcased signs of stabilization. With the ease in energy prices towards the end of Q2 2022, raw material prices went stable, prompted to the stabilization of prices in June. At the termination of Q2, the values accessed were USD 11200/MT with a quarterly inclination of 19.2%.
Asia
During the second quarter of 2022, Hydroquinone prices notably increased in the Asia Pacific region. At the onset of the first half of Q2 2022, the ongoing lockdown in some ports of Asian countries affected the hydroquinone market. The hydroquinone market witnessed a price increment owing to a spike in upstream raw material benzene following increased crude oil prices due to ongoing geopolitical conflict (Russia Ukraine war). At the termination of the first half of Q2, the prices of Hydroquinone were recorded to be USD 11160/ton CFR Shanghai with a quarterly inclination of 11.63%. Later with the commencement of June, the prices went stable owing to stable raw material prices, ease in energy prices, and stable demand in regional and overseas markets.
Europe
Hydroquinone prices showed strong market sentiment in the European market. At the beginning of Q2, the costs of Hydroquinone skyrocketed due to increased feedstock product benzene. Also, the persistent soaring of fuel prices and the disruption in shipments owing to suspended transportation due to geopolitical tension and resurfacing covid 19 led to a delay in trade, impacting the feedstock and hydroquinone values in the Europen market. Moreover, the upsurge in upstream crude oil owing to the Russia Ukraine conflict also impacted the Benzene market. Towards the end of Q2, the values were recorded at USD 10650/ton FOB Le Havre (France), with a quarterly inclination of 19.48%.