For the Quarter Ending June 2024
North America
Isophthalic acid prices have continued to rise in the US market during the second quarter of 2024 supported by the shortage of import supply coupled with high ocean freight rates justified sellers' hike attempts.
In addition, the feedstock m-xylene prices have increased throughout the quarter which led to the high production cost of Isophthalic acid. As a result, manufacturers in the exporting nations, China and South Korea have opted to maintain their prices at elevated levels thus same can be reflected in the import prices. At the same time, imports from the exporting market have been reduced in the US due to port congestion brought on by the adverse weather conditions in the Asian market as well as the lingering Red Sea crisis. As a result, the level of inventories was observed on the lower end in the US market, further contributing to an upward shift in the price realization of Isophthalic acid.
Though, demand for Isophthalic acid from the downstream PET resin and its derivative sector was muted as consumption from the end-user PET resin and its derivative sector has been slowed down in the domestic market. Also, downstream factories were mostly maintaining purchases tied to basic needs, showing low enthusiasm for procurements. The market’s ability to consume raw materials was limited, resulting in an overall sluggish state of demand. Despite this factor, prices of Isophthalic acid have remained buoyant in the domestic market. On the other hand, consumer prices increased less than expected in April, suggesting that inflation resumed its downward trend at the start of the second quarter in a boost to financial market expectations for a September interest rate cut.
Asia- Pacific
Prices of Isophthalic acid have continued to show an uptrend in the South Korean market during the second quarter of 2024 owing to tight supply. The feedstock m-xylene prices have increased followed by strong crude oil prices which resulted in the high production cost of Isophthalic acid, contributing to an uptrend in the price realization of Isophthalic acid in the domestic market. On the demand front, the inquiries from the downstream Polyethylene Terephthalate resin and its derivative industry have largely moderated in the domestic market as consumption from the end-user sector has been steady in the domestic market. Apart from this, South Korea's annual inflation rate in South Korea slowed to 2.9% in April 2024, from 3.1% in the previous month, alleviating the strains from the purchasing power of the end-use industries. At the same time, inquiries from the overseas market have increased in an effort to restock the inventories. According to the Ministry of Trade, Industry and Energy (MOTIE), petrochemical exports from South Korea have increased by 16.3% in April 2024, compared with the previous month. Furthermore, the supply of Isophthalic acid was relatively tight due to low operating rates and some plants have been under maintenance shutdown across the domestic market, keeping the prices elevated in the domestic market.
Europe
Throughout the second quarter of 2024, Isophthalic acid prices have remained on a soft note across the German market amid quiet buying sentiments. A muted purchase interest further lent support to a weak pricing environment. The cost support from feedstock m-xylene was limited to Isophthalic acid as its prices settled on the lower end in the domestic market, causing the prices to follow a downward trend in the domestic market. In addition, domestic operating rates have remained under pressure in the wake of economic uncertainties. Additionally, heavy rainfall and subsequent flooding in Bavaria and Baden-Wurttemberg had a minimal impact on the Isophthalic acid market, with trading activity remaining suppressed. Meanwhile, Asian imports have faced logistical challenges, including cargo delays and disruptions in the Red Sea, although expectations suggest improved flow by the second half of July. Despite this, current material availability in the domestic market has been adequate to meet weak spot and contractual demand levels which weighed down the prices of Isophthalic acid in the domestic market. On the demand front, inquiries from the downstream PET resin and its derivative industry have remained muted with limited instances of new orders reported by market players, supporting the prices to follow a downward trend. In addition, the spot market transactions were also flat amid divergent supply and demand fundamentals with market players anticipating prices to fluctuate further.
For the Quarter Ending March 2024
North America
Throughout the first quarter of 2024, Isophthalic acid prices have witnessed a bearish rally in the US market as prices decreased in the exporting market. The demand for Isophthalic acid from the downstream PET resin and its derivative industry has remained soft amid null season demand, leading to the bearish market sentiments of Isophthalic acid among the sellers of Isophthalic acid.
The market transactions were mainly based on small orders. On the other hand, according to data released by the US Bureau of Labour Statistics, the annual inflation rate in the US has edged up to 3.2% in February 2024, compared to 3.1% in January. Foreseeing the rise in inflationary pressures, the Federal Reserve has effectively ruled out the possibility of an interest rate cut before June, keeping it in the 5.25% to 5.5% range since last July. The firm inflationary pressure has further impacted the purchasing power of consumers.
Meanwhile, imports from Asia have turned cheaper as prices decreased in the exporting market amid sufficient inventories which in turn led to low imported prices of Isophthalic acid in the US market. In addition, spot prices for the China-US routes shifted direction as of mid-February. The cumulative gains were relatively smaller in China-US routes during the upswing. Hence, the slump arrived later at a slower pace. According to Freightos, the latest index for China/East Asia - North America West Coast decreased by 7% to stand at USD 4,419/FEU while the index for the East Coast was also down by 8% to USD 6,107/FEU as of March 2024. Despite this, material availability was limited as buyers were reluctant to stock the material due to tepid demand.
Asia- Pacific
Isophthalic acid prices have continued to decline in the South Korean market throughout the first quarter of 2024. The cost pressure from feedstock m-xylene was limited on Isophthalic acid as its prices settled on the lower end in the given time frame, supporting the prices to follow a downward trend in the domestic market. On the demand front, the inquiries from the downstream PET resin and its derivative industry were flat amid null season demand in the domestic market which weighed down the prices of Isophthalic acid. Most market transactions were mainly based on a need-on-demand basis. In the meantime, demand from the overseas market has also softened amid macroeconomic headwinds as well as low season demand. Furthermore, the Ministry of Trade, Industry and Energy (MOTIE), South Korea’s petrochemical exports in February dropped by 3.1% year on year to USD 3.94bn, reversing the 4.0% growth in the previous month, indicating weak demand. Furthermore, the firm inflationary pressure and high-interest rates have further eroded the purchasing power of consumers and deteriorated the market sentiments of Isophthalic acid in the domestic market. Moreover, material availability was observed on the higher end amid a decline in demand, leading to the bearish market sentiments of Isophthalic acid among the manufacturers.
Europe
Isophthalic acid prices have persistently increased across the German market during the first quarter of 2024. Tightening supply conditions were the main driver behind the price rise, even though demand from the downstream PET resin and its derivative industry has remained under pressure from economic challenges. Additionally, cost support from feedstock m-xylene was sufficient for Isophthalic acid as its prices settled on the higher end in the domestic market. These supported the prices to follow an uptrend in the domestic market. Furthermore, international crude oil prices gained as European diesel demand, constrained by Russian sanctions and shipping disruptions, pulled oil prices higher in a market jittery with US refinery output limited by planned overhauls. The strong crude oil prices have further raised the overall production cost of feedstock m-xylene in the domestic market. Moreover, the price rise was further supported by curtailed output rates and a few outages in the domestic market, leading the limited material availability in the domestic market. However, the overall demand situation could be described as mostly static, with market players having to deal with tepid end-user industry demand, contributing to the uptrend in the price realization of Isophthalic acid in the domestic market. Meanwhile, imports from the Asian market were higher amid elevated freight rates, disrupted supply chains, and firming in other major global markets. This further boosted the market sentiments of Isophthalic acid.
For the Quarter Ending December 2023
North- America
Isophthalic acid prices in the US market continued to decrease during the fourth quarter of 2023. The influence of feedstock m-xylene's cost pressure on Isophthalic acid was insufficient, as its prices settled on the lower end in the domestic market, prompting a downtrend. Simultaneously, imports from the Asian market became more economical as prices decreased in the exporting market, resulting in a reduced production cost of Isophthalic acid in the US domestic market.
Additionally, macroeconomic challenges, such as ongoing inflationary pressure and elevated interest rates, weakened the purchasing power of end-users. Although the Federal Reserve targeted a 2% annual inflation rate, achieving this goal was not anticipated for several years. Market indicators suggested that the central bank was likely concluding its rate hikes in the current cycle, even though officials had one more increase planned before the year's end.
Furthermore, demand for Isophthalic acid from the downstream PET resin and its derivative industry remained subdued due to sluggish buying trends among end-users. Market players noted that weak demand continued to put pressure on sellers, with buyers either making limited purchases when necessary or adopting a cautious stance in anticipation of potential further declines. The decline in downstream demand could be attributed to underperforming end businesses and global economic uncertainties. Meanwhile, overseas market demand also softened as buyers refrained from actively stocking up on the material, further contributing to the downward pressure on m-xylene prices.
Despite disruptions in the supply chain caused by turmoil in the Red Sea and prolonged drought in the Panama Canal, material availability remained sufficient to meet overall downstream demand, further deteriorating the prices of Isophthalic acid in the domestic market.
Asia- Pacific
Isophthalic acid prices have demonstrated a bearish trend in the South Korean market during the last quarter of 2023 reflecting challenging conditions in the nation's chemical industry. Factors such as decelerating economic growth, diminished demand, and an oversupply in the domestic market contributed to these hostile circumstances. The cost pressure from feedstock m-xylene was limited on Isophthalic acid as its prices settled on the lower end throughout the quarter of 2023. These lead to the bearish market sentiments of Isophthalic acid among the manufacturers. In addition, demand for Isophthalic acid from the downstream derivative PET industry has remained tepid with limited instances of new orders reported by market players. This supported the prices to follow a downtrend in the domestic market. Meanwhile, inquiries from the overseas market have been subdued in recent months as macroeconomic challenges continue to keep consumer spending at bay. In addition, South Korean isophthalic acid producers face difficulties in raising export prices as buyers find it difficult to stomach. China-bound shipments experienced a 9.5% drop in October, indicating weakened demand. Regarding domestic production, manufacturing firms maintained steady rates, indicating a lack of improvement in demand from the downstream industry. Additionally, South Korea's manufacturing Purchasing Manager Index slightly improved from 49.8 in October to 50.0 in November, mirroring stable operating conditions midway through the final quarter of 2023. Despite this stability, existing inventory levels were considered sufficient, prompting manufacturers to clear out their current inventories at discounted prices.
Europe
The European chemical industry faced substantial challenges due to increased tensions in the Israel-Palestine conflict, ongoing geopolitical issues involving Russia and Ukraine, and changes in the global energy market. These geopolitical events resulted in continuous fluctuations in chemical raw material prices, affecting downstream demand on a broader level. In the final quarter of 2023, the European largest economy, the German market saw a decline in Isophthalic acid prices, driven by a deepening economic downturn linked to weakened domestic demand. The demand for Isophthalic acid from the downstream PET resin and its derivative sectors has remained lackluster due to weak buying trends among the end-user sector which weighed down the prices of Isophthalic acid in the domestic market. Market participants report spot market transactions were also average, as the eagerness of terminal firms to enter the market was not strong. Additionally, macroeconomic challenges, particularly firm inflationary pressure, and high interest rates, further eroded the purchasing power of end-users. Market participants observed that the worsening demand outlook accelerated destocking activities toward the end of the quarter of 2023. In addition, the drop in feedstock m-xylene prices amid weak demand from other end-user sectors has resulted in a lower production cost for Isophthalic acid in the domestic market. Concurrently, competitively priced offers from the Asian market further depressed Isophthalic acid prices in the German domestic market. Additionally, the operating rates of the manufacturing firms have remained under pressure. Despite this material availability was abundant to cater to overall downstream demand. Furthermore, the German manufacturing Purchasing Manager Index remained in the contraction zone (i.e., below 50), indicating a contraction in industrial and production activity. Furthermore, the recent turmoil in the Red Sea had not impacted the supply of Isophthalic acid at a very broad level as there was already tepid demand and enough supply within the domestic market.
For the Quarter Ending September 2023
North America
The market dynamics for isophthalic acid were significantly affected by slow to moderate demand from PET and other polymer resins throughout the third quarter of 2023. Lower production costs allowed for ample inventories to meet both domestic and international demand and retailers were able to improve their performance to satisfy domestic needs. Businesses continued to expand as they increased their capacity to handle the surplus work resulting from the improved supply conditions. Although the US dollar experienced a slow turn against a basket of currencies following the release of this data, its losses were limited because the report suggested that the labor market remains tight, potentially requiring the Federal Reserve to maintain higher interest rates for an extended period. In the US market, the supply chain remained stable, although some shipments that used to go through the US West Coast ports were redirected to other gateways within the United States due to concerns about labor negotiations. While the West Coast ports had secured a new labor agreement, convincing US importers to fully return their supply chains to these ports has proven to be a challenge. Consequently, the prices of isophthalic acid in the domestic market were influenced by these consecutive factors.
Asia-Pacific
Isophthalic acid prices range in the Asia-Pacific market witnessed a decline throughout Q3 of 2023 due to slow demand from downstream industries such as PET resins and coatings. South Korea's Central Bank maintained its interest rate unchanged, citing a need to maintain a cautious monetary policy stance in the face of persistently high costs despite increased economic uncertainty. The Bank of Korea (BOK) announced that its seven-member policy board voted to keep the base rate at 3.50%. Another contributing factor to the decline in purchasing activity and weak demand is the depreciation of the Korean Won against the US dollar in the global market, which impacted the overall trading dynamics of commodity prices. Korea has taken steps to support its domestic petrochemical sector by eliminating tariffs on the import of essential materials like naphtha and crude oil. According to the Ministry of Economy and Finance, these measures include reducing tariffs on all naphtha imports to zero until the end of 2023, down from the current 0.5 percent. Another factor affecting increased purchasing activity and subdued demand is the weakening of the Korean Won against the US dollar in the global market. This influenced the overall trade dynamics of commodity prices in the Asian-Pacific market.
Europe
In the third quarter of 2023, Isophthalic Acid moved southerly on account of slow demand from the PET bottles, and unsaturated polymer resins industries. The Isophthalic Acid and its derivative industry was under pressure from declining prices due to persistently weak demand. To alleviate their stockpile issues and avoid profit losses, producers have been reducing production rates and working to decrease their inventories. Despite these efforts, traders are still struggling to sell their excess supplies, primarily because of a combination of sluggish seasonal demand and buyers' preference for importing more cargo. The significant reduction in the availability of bank loans to the economy indicates that the measures taken to tighten monetary policy are beginning to have an impact on the economy. This slowdown in the economy was particularly evident in the industrial sector, and there was a diminishing growth trend in the service sector which had a significant impact on the isophthalic acid prices in the European market despite the continuous incline in the mixed xylene (feedstock) prices owing to crude oil and naphtha prices.
For the Quarter Ending June 2023
North America
Isophthalic Acid prices in the second quarter followed the southward momentum on account of declined demand from end-use (PET resins and coating resins) accompanied by declining production costs. Mixed xylene is a major feedstock for isophthalic acid production which consequently witnessed the diminishing price dynamics proportionally impacting the overall production cost of isophthalic acid in the North American market. Other factors which contributed equally to governing the overall market of isophthalic acid included the US bank emergency that hampered the interest and store network proportion, becoming one of the features administering the declining costs of isophthalic acid in the regional market. The cargo market was kept on excess less than impressive which brought about consistent transportation costs further helping the imports onto the US ports. Moreover, the brief closure on the US West Coast ports have been weakened and typical resumption in port exercises has been noticed. With lower production costs, inventories were adequate to fulfill homegrown and global needs. A sharp decrease in input requests made it feasible for seller execution to rise reasonably to take care of homegrown interest.
Asia-Pacific
In the second quarter of 2023, Calcium formate prices declined throughout Q2 on account of slow demand. Isophthalic acid costs in the South Korean market because of slow interest from downstream PET bottles and other packaging industries. Moreover, the production cost of isophthalic acid remained on a declining trend as the feedstock (mixed xylene) prices remained on the lower edge. South Korea's National bank held interest rate predictable as compared with the previous quarter, saying it will keep a tight situation on cash-related technique amidst still extreme expenses paying little mind to elevated financial weakness. The Bank of Korea (BOK) said its seven-section monetary methodology board cast a voting form to keep the base rate unaltered at 3.50%. Another aspect administering the declining buying action and feeble interest is the disintegrating Korean Won against the US dollar in the worldwide market affecting the general exchanging effects of the ware costs. South Korea's economy accelerated quicker than anticipated in the subsequent quarter, and business spending add to the case for the national bank to release its prohibitive financial approach.
Europe
In the second quarter of 2023, Isophthalic Acid moved southwards on account of slow demand from the PET bottles, and unsaturated polymer resins industries. The additional lift to expansion had obliged the European National Bank (ECB) into extreme financial fixing while at the same time harming clients' genuine buying power and firms' effectiveness. Eurozone government getting costs rose on the news as money-related allies bet on additional essential ECB rate increments. With distorted interest charges and higher product costs, the overall turn of events and covering areas were impacted. Working with supply bottlenecks, the high wealth of orders, and the fall in energy costs support the went on with recuperation of industry. The isophthalic market remained on the lower end as a declining additive and leather ventures' interest brought about powerless expense support. The feedstock mixed xylene, market was likewise feeble on top of negative energy values and high inventories among the essential makers.
For the Quarter Ending March 2023
North America
In the first quarter of 2023, Isophthalic Acid prices showed a mixed trend. In January 2023, Isophthalic Acid prices dropped substantially owing to cheap imports from the Asian markets, while the freight market witnessed little to no optimistic improvement through the quarter. However, in February, Isophthalic Acid prices rose sharply as the market sentiment changed globally. Increasing prices in the Asia Pacific region have catapulted the import of Isophthalic Acid prices in the US. In March, Isophthalic acid prices have been stable in the US market owing to stability in the prices of the imports reaching US shores from Asian markets amid steady demand fundamentals. The supply chains worsened with the temporary shutdown of activities on the US West Coast Ports as Labour Unions and Port Authorities were unable to reach agreements resulting in operation disruptions. Thus, after the conclusion of Q1 2023, Isophthalic Acid prices were assessed at USD 1692 per MT.
APAC
After a steady start to the first quarter of 2023, Isophthalic acid prices finished the quarter on a strong note. The prices of Isophthalic Acid in China have continued their bullish trend in the first quarter. The critical factor driving the prices has been the rise in upstream Xylene prices. The increase in cost pressure has translated into an increase in Isophthalic Acid prices and other value chains. Meanwhile, the supply-demand dynamics remained mostly stable. Meanwhile, the demand fundamentals are still on the weaker side, reported several market participants. Hence, as of March 2023, Isophthalic Acid prices were assessed at USD 1480 per MT FOB Qingdao.
Europe
In the European market, Isophthalic Acid prices largely followed the Asian market as European countries largely depend on the Asian region for their Isophthalic Acid demand. South Korea and Japan, coupled with China, have been the largest exporters to the European market, and stable production rates in these exporting nations culminated in the steady flow of imports onto the European shores. The European freight market remained lackluster third quarter straight, with freight charges and shipping continuing to decline, further easing imports into the European nations. Thus, as of March 2023, Isophthalic acid prices were assessed at USD 1575 per MT.
For the Quarter Ending December 2022
North America
In the US, Isophthalic Acid prices dropped sharply in the last quarter of 2022 owing to weak demand from downstream PET and soft prices of the imports reaching US shores amid declining freight charges. Import availability has been ample in the US ports as freight charges reached normalcy in Q4 2022 and continue to remain soft in January 2023. Production rates in the Asian Pacific region have been steady, resulting in stable exports to the US. Meanwhile, downstream demand from Polyethylene Terephthalate and other industries has been weak amid off-season dullness for downstream PET.
Asia-Pacific
Isophthalic Acid prices have continued their downward trend in Q4 2022 owing to sluggish demand fundamentals amid firm cost pressure from feedstock m-Xylene. Market participants have reported firm availability of inventories at the ports, and logistics have improved, resulting in increased material availability in the domestic market. Downstream demand from Polyethylene Terephthalate and other industries has been weak amid holidays. Traders have reported soft buying sentiment in the market, and there was a limited number of queries from end-use enterprises.
Europe
All major European markets reported a sharp decline in Isophthalic acid prices in the last three months of 2022 on the back of sluggish consumer sentiment and ample material availability in the European markets. Imports remained firm on the European shores from Asia as freight charges dropped drastically and reached pre-covid normalcy. Asian manufacturers were further prompted to export Isophthalic acid due to limited consumption rates in the local markets. Meanwhile, demand from PET manufacturers remained soft owing to off-season dullness coupled with recessionary fears and high inflation rates.
For the Quarter Ending September 2022
North America
At the beginning of quarter III of 2022, the prices of Isophthalic Acid were increasing in the North American market, which was later observed to be declining sharply. The major reasons behind the dropping pricing trend were weak downstream demand and abundant stockpiles. The offtake of Isophthalic Acid from downstream PET (Polyethylene Terephthalate) fell as the quarter proceeded, which eventually led to a decline in Isophthalic acid prices. Furthermore, owing to reduced energy costs, eased port congestions, and better industrial operation rates, the market was flooded with Isophthalic Acid supply. The Isophthalic Acid supply outstripped the available demand in the market, which supported its price drop. Conclusively, the prices of Isophthalic Acid assembled at USD 1789/MT CFR Texas during September.
APAC
Due to fluctuating dynamics between supply and demand, the price of Isophthalic Acid in the Asia-Pacific region remained unstable in the third quarter of 2022. Isophthalic Acid prices rose in July, fell in August, and then rose once more in September. The primary causes of the price decline for Isophthalic Acid in August were the increase in industrial production rates, the excess supply, and the overabundance of stockpiles. This tendency was strengthened further by weak downstream demand from PET industries. Isophthalic Acid's pricing trend altered in September because of supply problems, supply chain disruptions, and a surge in demand. Hence, the assessed price value of Isophthalic Acid in September was USD 1434/MT FOB Qingdao.
Europe
Like North America, the prices of Isophthalic Acid were rising in the European market initially during Q3 2022, but these prices were later seen to be sharply decreasing. Weak downstream demand and large stocks were the leading causes of the downward pricing trend. As the quarter went on, there was a decrease in the offtake of Isophthalic Acid from downstream PET (Polyethylene Terephthalate) industries, which ultimately resulted in a decline in its market value. Additionally, the market was oversupplied with Isophthalic Acid due to decreased energy costs, eased port congestion, and better industrial operation rates. Isophthalic Acid's price fell as the available supply outpaced the demand in the market.
For the Quarter Ending June 2022
North America
North American market witnessed an upsurge in the prices of Isophthalic Acid during the second Quarter of 2022, on the back of increased downstream demand. As the primary industrial application of Isophthalic Acid is the production of PET (Polyethylene Terephthalate), and the offtake of PET Remained on the higher side amidst rising beverage consumption, the demand for isophthalic Acid soared. Furthermore, the price value of feedstock m-Xylene mainly surged during the quarter, which contributed to the price rise of Isophthalic Acid in the region. In addition, increased crude oil prices, elevated freight charges, and congested ports were a few other factors that contributed readily to the Isophthalic Acid price hike.
APAC
In the Asia-Pacific region, the price value of Isophthalic Acid declined slightly at the beginning of the second quarter, which regained its momentum and surged consistently till June. Increased demand from PET Industries due to growing consumption of beverages amidst rising temperature in the peak of the summer season led to the price surge of Isophthalic Acid in the region. Furthermore, the supply was constrained owing to supply chain disruptions because of another covid outbreak in China and the Russia-Ukraine conflict. In addition, the energy costs were higher, eventually soaring the upstream cost involved in Isophthalic Acid production, causing its price to rise. Escalated freight charges and congested ports added to the already augmented price value of Isophthalic Acid in the Asia-Pacific region.
Europe
Mirroring the North American Pricing trend, the market value of Isophthalic Acid inclined during Quarter 2 of 2022 in the European region as well. Strong downstream demand due to increased offtake from PET Industries was one of the major reasons behind the price surge of Isophthalic Caid in the European countries. Furthermore, escalated energy costs and elevated freight charges amidst Russia-Ukraine war tensions exacerbated the already augmented price value of Isophthalic Acid. In addition, a hike in raw material m-Xylene value throughout the Quarter further propelled the Isophthalic Acid prices upwards. Altogether, robust demand from end-user industries and halted supply chain were the major factors supporting the price increment of Isophthalic Acid.
For the Quarter Ending March 2022
North America
In Q1 2022, the cost of Isophthalic acid flooded through the quarter because of strong feedstock xylene and Natural gas market in United States. Costs for mixed xylene in North America rose in the first quarter of 2022, attributed to strong interest from downstream polyethylene terephthalate makers. In this time span, the pricing pattern of Isophthalic acid was straightforwardly upheld by unpredictability in upstream crude oil prices and strong offers of crude and Natural Gas costs. Logistics constraints and high transportation cost surged the cost of Isophthalic acid for the overseas merchants. Imports from Mexico likewise increased as turnarounds in this quarter kept the costs on the upper end. In US, the price of Isophthalic acid during March 2022 were registered at USD 1700/ton CFR Louisiana.
Asia Pacific
Isophthalic acid market members stayed uncertain and continued to track upstream and xylene costs, hoping to balance out PX-MX and MX over feedstock naphtha margins. In March, PX-MX margins have been drifting at around USD110/ton, while MX edges over feedstock naphtha are floating around USD120-USD140/ton. March cargoes stay tight given upstream volatility recently and the earthquake in Japan influencing feedstock meta-xylene supply-demand balance. Sentiments in the product's market was set to stay bullish in this quarter in the midst of the Russia-Ukraine conflict and potential for additional sanctions on Russia. Downstream packaging and plastic industries stayed vigorous which pressurized the producers to sustain the consumer’s requirement. Most of producers were extending their product offerings and delivering new forms of their existing product as restricted supply made supply/demand gap. In South Korea, the price of Isophthalic acid in March were assessed at USD 1350/ton FOB Busan.
Europe
In Q1 2022, the market was vigorous with expansion in crude and Natural gas costs when compared with previous quarter. The inventories through the region were impeded because of high freight cost and surging logistics issues with shortage of carriers and port and appropriation focus workers which affected the Isophthalic market. Feedstock xylene costs in Germany maxed in March because of rising energy values because of progressing Russia-Ukraine conflict. The downstream packaging and plastic market worked steadily in this quarter with expansion in deals and sales of the significant end user enterprises. Nonetheless, towards last week of March, the costs began to slip because of sufficient stock and delicate market request which pushed the value pattern downwards. In this quarter, the price of Isophthalic acid in Germany were USD 1700/ton CFR Hamburg.
For the Quarter Ending December 2021
North America
In North America, the demand and cost of Isophthalic acid it stayed solid all through Q4. Feedstock m-Xylene market was likewise vigorous with increase in Naphtha and crude oil prices. Demand for isophthalic acid market was significantly determined generally by an ascent in the demand for polyethylene terephthalate (PET) bottle resins in the region. Thusly, there was demand pressure over PET resin from packaging and other allied areas. Limited accessibility of Isophthalic acid and feeble imports from Mexico as DAK Americas reported force majeure in Mexico further pressurized the locally accessible material. Imports from Asia likewise stay limited right after undauntedly high cargo charges.
Asia Pacific
In Asia Pacific, the market of Isophthalic acid was strong with the succeeding months of Q4. Feedstock Xylene market remained tight in India and China and the margins remained under pressure in the wake of ZPC production ramp with PX and MX spread ending with $88.50/MT in the first week of November. In the last week of December, the prices of Isophthalic acid in India were slipped to $1391/MT Ex-Vadodara. Inflationary pressure and imports halts have already skyrocketed the price of Isophthalic Acid in the region, which was anticipated to decline only. Despite of the fact that prices were already shot up significantly during April, overall buoyancy remained persistent which led them to rise consistently for further period. However, on the back of improved imports and ease in demand from the domestic market, Isophthalic Acid declined at the end of the quarter with approaching New Year Festive.
Europe
The European market of Isophthalic acid was robust with increase in feedstock prices. Demand from downstream user stayed solid where traders struggled all through the quarter to get their product. Recycled PET creation has likewise stayed dull and additionally expanded the reliance on virgin PET. Limited domestic production of Isophthalic acid and inaccessibility of imports from Asia exacerbated the production and finished in below-par operating rates abridging complete supply chain. Manufacturers additionally announced that rising feedstock costs have added to the pressure on Isophthalic acid.
For the Quarter Ending September 2021
North America
During Q3, prices of Isophthalic Acid remained robust in North America following the same trend as earlier quarters in 2021. Inventories remained low throughout the quarter while demand for Isophthalic Acid strengthened after the revival in the industrial as well as commercial activities. Production rate was impacted due to the arrival of Ida Hurricane in August end in the Gulf Coast of USA. Furthermore, spike in values of feedstock also influenced the prices of Isophthalic Acid and its downstream products including Polyethylene Terephthalate (PET) and Polybenzimidazole. Hence, Isophthalic Acid continued to rise in Q3 supported by high demand and limited availability.
Asia Pacific
In Asia, Isophthalic market showcased mixed sentiments as market dynamics varied from country to country. In China, Isophthalic prices remained stable during this quarter. In the middle of Q3, marginal hike was observed in its prices due to the supply chain disruption and port congestion. However, towards the end of the quarter prices bounced back. In India, prices of Isophthalic Acid shot up backed by the exorbitant freight charges, as India imports most of Isophthalic Acid from Korea and other countries. Moreover, delayed imports due to the clogging on the interoceanic trade routes and shortages of shipping containers also exerted pressure on the Isophthalic market in India. Therefore, Ex-Vadodara Isophthalic Acid prices settled at USD 1479.26 per MT in September showcasing a significant hike since July.
Europe
In Europe, Isophthalic Acid market outlook remained sluggish during the third quarter however improvement in offtakes from the downstream sectors was observed during this period. Isophthalic prices witnessed an upward trend due to the constant upstream pricing pressure and lower production rates across the European region. Moreover, limited imports from the US as an impact of Ida hurricane in August further sent ripples to the prices of Isophthalic Acid in Europe during this quarter.
For the Quarter Ending June 2021
North America
Supplies of Isophthalic Acid were tight throughout the second quarter. Demand surged with the restoration in the industrial activities around the US Gulf Coast and pick up in the manufacturing sector supported by the recovery in supply chains. However, some constraints were present due to the rising global inflation rates. Demand surged from the downstream manufacturing facilities, as the mass vaccination programmes induced the public movement in the North American region, which further pace up the market movement and economic activities. Taking cues from the hiked prices of Benzene and better demand, prices of Isophthalic Acid remained firm in the second quarter of 2021.
Asia Pacific
The prices of Isophthalic Acid in the Southeast Asian region were fluctuating throughout the quarter as the market activities slumped in the starting of the quarter amid the rising COVID cases in the region. Buyers were heard restraining to procure cargoes amidst hovering uncertainty in the domestic market, although the situation recovered in the later half of the quarter due to pick up in the industrial activities. Ex-Depot discussions for Isophthalic Acid settled at USD 1348 per tonne in June. Demand in the region surged in the second quarter with the surge in exported volumes to the overseas market, specially from the US as the industrial activities resumed In the Gulf coast.
Europe
In the European region the Isophthalic acid market outlook improved compared to the previous quarter, as the operation rates improved at several plants after production related hinderances disrupted dynamics in the winter season during Q1. Furthermore, imports from North America and Middle East improved as the several major manufacturing facilities ended their turnaround period. Demand surged from the downstream manufacturing industries as the mass vaccination programmes and ease in restrictions improved the offtakes from the plasticizers industry.
For the Quarter Ending March 2021
North America
Isophthalic Acid market in the North American region witnessed constrained supplies during the first quarter of 2021, owing to shortages related to the key feedstock chemicals due to capacity loss of about 70% in the US petrochemicals production. The industrial infrastructure in Texas and nearby gulf region was severely marred by the polar winter storm which led to the plant shutdowns for several weeks. Halted production of the key feedstock chemicals hindered the PIA supplies in the American markets. Shortages were reported in Latin America due to constrained US supplies. Demand from the downstream PET and UPR producing industries surged amid the supplies shortages, further resulted in high prices of PIA in the domestic market.
Asia-Pacific
The supplies of Isophthalic Acid in the Asian market were tight-to-balanced, owing to the low inventory levels of the key feedstock m-Xylene as several refineries including CNOOC's Huizhou petrochemical, Sinopec's Jiujiang Petrochemical among others, were on a maintenance turnaround in second half of the quarter. Demand surged due to better offtakes from the plasticizers and polyester sectors. The widened supply-demand gap further supported by the strengthened crude oil stimulated surge in the prices of PIA in Q1 with FOB Shanghai prices in March settling at USD 1460 per tonne.
Europe
During the first quarter of 2021, the Isophthalic Acid market witnessed tight supplies, due to hampered transportation between Amsterdam-Rotterdam-Antwerp routes amid severe winters in the northwestern region. The transportation lag further caused shortages in key feedstock chemicals. PKN Orlen facility in the Poland faced sluggish production at its Phthalic Acid facility. Shipments from the USA declined amid bad weather conditions and logistic delays. Demand from the downstream PET Resin was high from the packaging sector.
For the Quarter Ending December 2020
North America
Demand for Isophthalic Acid in Q4 was deemed feeble in North America due to slowed market activities following the spate of hurricanes in October. Furthermore, demand for the plastic industry also remained silent, as these segments largely utilized in end-use industries like automotive, packaging and construction industries which are yet to trace a pre-lockdown level. Isophthalic Acid players are recovering from their losses that were witnessed in Q3 but as the demand is still feeble it might take some more time to reach pre pandemic levels.
Asia
The supply of Isophthalic Acid in China remained sufficient with constant plant operating rates of downstream industries, while in rest of the APAC region, especially India, supply tightened due to higher freight charges. China’s demand remained comparatively flat with downstream polyester facility keeping rates generally steady. The demand from the import side especially from India was approximately healthy, as the polyester operating rates were kept at high levels which consequently positively affected the prices of Isophthalic Acid in India. Henceforth, Isophthalic Acid prices in India averaged at USD 1036 per MT Ex-Depot Mumbai in the quarter ending December 2020.
Europe
Many chemical distributors shut their supplies in Netherlands in Q4, as they faced difficulties in trading along several routes. Due to lockdown, arrivals of Isophthalic Acid cargoes from APAC region in Q4 was also delayed, as there was increased requirement for the plastic and packaging industry. As the market is expected to bounce back in Q1 under the buzz of roll out of Covid-19 vaccines, by the end of December enquiries of Isophthalic Acid revived considerably which led to a significant increase in its prices in the European Region in the quarter ending December 2020.
