For the Quarter Ending March 2024
North America
In the first quarter of 2024, the US masterbatch market witnessed a mixed pricing trend. Demand from downstream industries such as plastics and polymer manufacturing remained subdued, primarily due to oversupply and low consumption. Consequently, domestic manufacturers adjusted production rates downwards to align with the sluggish demand. The slow arrival of new orders from overseas markets further exacerbated the market dynamics. Supply-side operations were affected by the escalating expenses of upstream raw materials, which garnered increased price support throughout the quarter.
These disruptions in the supply chain were notably exacerbated by conflicts such as the Israel-Hamas tension and actions taken by Yemen’s Houthi forces. These events not only jeopardized oil supply but also drove up global crude oil prices, further straining production costs. While masterbatch prices stabilized towards the quarter's end, the overall market outlook remained largely unchanged, with offered quotations showing minimal variation. Despite significant price fluctuations experienced in the USA during Q1 2024, market sentiments generally remained stable.
Throughout the quarter, masterbatch prices were heavily influenced by trends in the upstream polymer market, reflecting similar patterns in the region. Despite concerns surrounding potential recession, inflation, and geopolitical uncertainties, consumer confidence in the US demonstrated growth in both February and March, indicating positive expectations for future business conditions. Overall, the North American masterbatch market encountered challenges such as weak demand, bearish sentiments, and uncertain business conditions, leading to notable price decreases compared to the previous year.
APAC
In Q1 2024, the Masterbatch market in the APAC region experienced a downward trend in prices. Several factors contributed to this decline, including weak consumer demand, low inventory levels, and ample availability of the product in the domestic market. The demand from downstream industries such as polymer and plastics manufacturing remained modest, leading to limited market transactions.
Additionally, the cost support from the upstream polyethylene market remained stable, further impacting the pricing dynamics. China, in particular, witnessed significant price changes during this period. The prices of Black Masterbatch dropped by 14% compared to the previous quarter in 2024. This decline can be attributed to sluggish demand and slower production rates due to the Lunar New Year holidays.
Overall, the market sentiments in China were negative, with limited inquiries and low market activities. Looking at the overall trends, the Masterbatch market in the APAC region recorded an 11% decrease in prices compared to the same quarter last year. Additionally, there was a 2% decrease in prices between the first and second half of the quarter. The quarter-ending price for Black Masterbatch (40% Carbon Black) FOB Tianjin in China settled at USD 1185/MT.
Europe
In the first quarter of 2024, the masterbatch market in Europe experienced fluctuations due to various factors impacting both its supply and demand dynamics. Production was affected by rising costs of key raw materials like crude oil, which saw increased price support during the period. Additionally, heightened freight charges, stemming from geopolitical tensions in the Middle East, particularly disrupted shipping routes such as the Red Sea and the Suez Canal, thereby impacting overall production costs.
While supply chain disruptions persisted due to conflicts like the Israel-Hamas tension and actions by Yemen’s Houthi forces, demand remained subdued. Downstream industries, such as automotive and construction, exhibited weak consumption patterns domestically and in other European regions. This was partly attributed to high existing inventories among consumers, leading to suppressed new order volumes.
Furthermore, the economic climate in Germany, Europe's largest economy, showed signs of sluggish recovery. High financing costs and weak domestic demand continued to dampen consumer and business sentiment. Consequently, minimal market transactions and low trading activity were observed, with marginal improvements noted in industrial production, construction, and foreign trade, according to the German Economy Ministry.
For the Quarter Ending December 2023
North America
In the fourth quarter of 2023, Masterbatch prices in the USA demonstrated mixed trends for various reasons. In October, prices rose due to high-priced imports, but inflation eased in November, improving business conditions. Positive trends continued in December as inflationary pressures further alleviated. Increased demand from plastics polymer coloring and other related industries contributed to improved business conditions, and major exporting nations raised selling prices due to higher production costs.
In November, there was a rise in consumer spending and enhanced market activities, contributing to an overall improvement in economic conditions. Nevertheless, downstream industries faced only modest demand. However, elevated raw material prices on the supply side led to increased manufacturing costs, prompting major exporting nations to raise their selling prices.
Despite worries about a potential recession, inflation, and geopolitical uncertainties, consumer confidence in the US grew in both November and December, indicating positive expectations for future business conditions. Overall, the Masterbatch market in North America faced challenges due to weak demand, bearish market sentiments, and uncertain business conditions. The prices reflected these conditions, with a notable decrease compared to the previous year.
APAC
The APAC region's Masterbatch market remained stable in Q4 2023 with moderate supply and demand dynamics. The market sentiments were mostly bearish due to subdued demand from downstream polymer and plastics industries amid oversupply. However, positive market sentiments were anticipated in China, which witnessed fluctuations in prices due to various reasons. The low production rate and a hike in manufacturing costs increased the prices of Black Masterbatch in China by 2.8% at the beginning of Q4. However, sluggish inquiries from consumers and moderate demand from polymer and plastics manufacturing sectors caused the prices to drop by 2.7% in November. The market situation was bullish in China due to low inventories of the product, but it remained bearish in the rest of the region In Q4, the prices of Black Masterbatch in China were USD 1100/MT (40% Carbon Black) FOB Taijin, which is a 3% decrease from the same quarter last year and a 12% decrease from the previous quarter. The price comparison between the first and second half of the quarter showed a 6% decrease. One of the primary reasons for the price fluctuation was the mid-Autumn holidays, which caused slow market transactions and limited market activities.
Europe
In the fourth quarter of 2023, the Masterbatch market in Europe demonstrated bearish sentiments, and the prices declined throughout this period. In October, prices in Germany fell due to sluggish demand from downstream industries. Additionally, the Eurozone’s manufacturing rates also declined, with growth in new orders contracting significantly. Although there was a slight improvement in the manufacturing PMI, it indicated an ongoing decline in industrial activities. In November, a further drop in the prices of Masterbatch in Germany was registered, driven by sustained weakness in the demand from downstream industries like plastics and polymer coloring. Manufacturing activities continued to decline in this period, despite a marginal improvement in the PMI. The supply chain further eased amid ongoing weak consumer demand. In December also, the prices in Germany continued to drop owing to persistent subdued demand. Downstream industries maintained weak consumer inquiries, leading to negative market sentiments. This month, high product inventories and destocking activities by consumers were observed in the region. The decrease in industrial activity during the year-end holidays and destocking led manufacturing companies to either slow down their operations or temporarily suspend them.
For the Quarter Ending September 2023
North America
In the third quarter of this year, the Masterbatch market remained subdued, and the prices declined throughout the period. In the first month, a decline in demand across downstream industries like plastics and polymers was registered. Weakened consumer demand, exacerbated by political tensions between the USA and China, resulting in low imports in the domestic market and increased reliance on the other markets was observed. The downstream plastics and polymer industries faced reduced demand, with fewer consumer inquiries observed. In August and September, the Masterbatch market continued to suffer from poor demand conditions and the influx of low-priced goods. On the back of deteriorating consumer demand and ongoing USA-China tensions. Notably, the United States began importing more from Mexico than China for the first time since 2003, reflecting changing trade dynamics. Consumer inquiries remained weak, particularly with the end of the high-demand summer season. Market transactions remained sluggish, and limited product procurement was observed overall.
APAC
In the third quarter of this year, the Masterbatch market in China demonstrated mixed market sentiments due to a range of factors. In the first month, the prices increased owing to moderate demand and limited inventories in the domestic market as the manufacturing firms were operating at lower production rates. In August and September, the prices dropped week-on-week due to weak demand demand conditions. Furthermore, bearish market sentiments persist due to weakened demand from downstream industries in polymer and plastics manufacturing. China grapples with multiple post-pandemic challenges, such as a real estate crisis and reduced consumer spending. Global demand for products manufactured in China has dwindled in the wake of the COVID-19 pandemic and the ongoing trade dispute with the United States. At the end of Q3, amid the mid-autumn holidays, the businesses were closed and limited market activities were noted in the domestic market. Overall, the market sentiments were bearish throughout this period and thereby, the discussions for Black Masterbatch FOB Tianjin settled at USD 1134/MT in September.
Europe
In the third quarter of 2023, the Masterbatch market in Europe demonstrated mixed sentiments and the prices fluctuated throughout this period. In the initial weeks of Q3, the inflationary pressure impacted the business activities in the region and the consumer demand remained weak amid uncertain economic conditions as high interest rates took a toll on the business conditions. August marked a slight improvement in market sentiments, as there was a modest price increase, attributed to a boost in demand from the downstream industries. However, the supply side was lacking amid low operating conditions among the manufacturing firms. Come September, Masterbatch prices in the domestic market increased slightly. This was due to marginal improvement demand and rising production costs driven, in part, by fluctuating natural gas and upstream Crude oil prices in Europe. The manufacturing activities were slow in the region as post the vacation season, the rebound in the market activities was poor due to which, the inventories of the product were low in the domestic market.
For the Quarter Ending June 2023
North America
Prices of Masterbatch showed mixed sentiments in North America in the second quarter of 2023. In the month of April, the bearish trend continued in the Carbon Masterbatch Market due to the negative cost-push of the feedstocks and energy. The demand remained weak due to high-interest rates and the expectation of a hike in interest rates by the US Federal Reserve. Inquiries revealed that consumers are following a 'Wait and Watch' strategy due to uncertainty. Downstream industries of construction and automotive are recording negative growth. Automotive car sales volume dropped from 1,384,676 to 1,357,125 units in April 2023. In the month of May 2023, the demand for the Masterbatch increased from the downstream construction and the automotive sectors. The supply remained stable, and the additional demand was fulfilled through increasing imports from India, Vietnam etc. Inflationary pressure reduced with additional purchasing power led to improvement in demand. The trend was followed in June as demand increased further from the downstream industries. Investors sentiment remained 'neutral.' Imports from India, China etc., increased further to cater to the domestic demand.
APAC
Prices of Masterbatch showed mixed sentiments in Asia in the second quarter of 2023. In the months of April and May 2023, the prices of Masterbatch observed a bearish trend in the Chinese domestic region owing to sluggish demand from the downstream polymer and plastics manufacturing industries. The manufacturing activities have slowed down in the region, and the output rates also slid down amid bleak domestic demand for the product. The inquiries from the overseas markets also declined in this time frame. In the month of June 2023, the price of Masterbatch increased because of be increase, and active procurement from the automotive and polymer manufacturing sectors was observed. The domestic manufacturers operated at a regular pace maintaining sufficient inventories of the product. The overall supply has remained resilient. The overall plastics market observed strong competition in the region amid stable demand and increasing supply. Indian markets showed a similar trend. The price in Indian markets remained stable due to adequate inventory stocks and cheap imports from China. Prices of Black Masterbatch (40% Carbon Black) FOB Tianjin were settled at USD 1244/MT in the month of June 2023.
Europe
Prices of Masterbatch showed mixed sentiment in the second quarter of 2023. In the month of April 2023, the price of Carbon Black Masterbatch slightly declined due to a negative cost push from the feedstock Carbon Black and petroleum coke. The demand from consumers remained subdued because of high-interest rates and inflationary pressures. The downstream automotive and construction industry remained on the leaner side but remained stable. In the month of May 2023, the price of Carbon Black Masterbatch increased amidst the rise in demand situation as Real (price adjusted) new orders in manufacturing were up 6.4% in May 2023 month on month after seasonal and calendar adjustment and due to positive cost push from the feedstocks and energy prices. Cheap Imports declined by 20% in the month of May viz-a-viz April also significantly impacted the pricing. In the month of June 2023, amidst the weak demand from the downstream automotive and plastic industries, the price of Carbon Black masterbatch moderated but ended up at a higher price compared to May 2023. Inquiries reveal that the imports improved the pricing to a certain extent, along with a negative cost push from the feedstocks. As Europe goes into a technical recession, with inflation in Germany as high as 8.2 %, vendor inquiries revealed that consumers are postponing consumption.
For the Quarter Ending March 2023
North America
The Masterbatch market in the North American region has observed a mixed pricing trend in the first quarter of 2023. The market sentiments for the product were in positive territory in the first month of Q1 2023 amid increased production rates and a surge in demand from the downstream automotive and coatings industries. In the next two months of Q1 2023, the market prices of Masterbatch plummeted owing to weaker demand in the downstream coloring and automotive industries and suppressed inquiries from domestic as well as international market participants. The manufacturing activities were stable, and domestic manufacturing units operated at a steady pace maintaining adequate inventories of Masterbatch in the region.
APAC
In the first quarter of 2023, the overall market of Masterbatch showcased a bullish pricing trend in the Chinese market throughout. In the first half of Q1, the market prices surged amid a limited supply of raw material high-temperature coal tar and carbon black in the Chinese domestic market, whereas the demand outlook was firm from the downstream polymer and automotive industries. In the second half of Q1, the demand outlook improved substantially post-Lunar New Year festivities as the factory workers returned to work and production rates boosted in the region. Also, the overall market prices continued the upward trend backed by increased prices of upstream Carbon Black, and the prices of Black Masterbatch (40% Carbon Black) FOB Tianjin settled at USD 1315 per tonne at the end of Q1 2023.
Europe
The Masterbatch market in Europe exhibited mixed sentiments in the first quarter of 2023 due to uncertainties related to economic conditions as the central banks raised the interest rates to compete with the rising inflation. The demand for Masterbatch fluctuated throughout Q1 amid a weaker demand outlook from the downstream polymer and automotive industries in the region as the market consumers were reluctant for new purchases, and higher energy prices also affected the overall market of Masterbatch in the Eurozone. The manufacturing activities dropped throughout Q1 amid slower production rates and sluggish demand from domestic and international markets.
For the Quarter Ending December 2022
North America
During the fourth quarter of 2022, the prices of Masterbatch plummeted in the USA market, as per quoted by ChemAnalyst Research Team Data. The market was weakened by the declining demand from downstream from the agricultural and construction sectors in the USA market. The product inventories were observed to be increasing with the traders and the suppliers. The product inventories were increasing as consumption decreased, as noted by the traders and the suppliers within the regional market. The production cost decreased with declining feedstock Carbon Black and other upstream products.
Asia
Masterbatch prices plunged in the Asian market during the fourth quarter of 2022, with a fall in the feedstock Carbon Black costs. US manufacturing orders in China are down by 40% as demand from the downstream market collapse. The demand from downstream paintings and the plastic industry declined to affect the market, and the offtake of Masterbatch to produce stabilizers and antioxidants remained low. Carbon Black prices also decreased in December compared to the middle of the quarter as feedstock crude oil and natural gas prices softened in the first two weeks of December. Demand from the downstream automotive industry had seen a slight dip during the quarter as production outputs decreased compared to the September quarter. Offtakes from the downstream compounding and extruders have been assessed lower compared to September 2022 levels.
Europe
In the Q4 of 2022, the market prices of PEB 4063 Black Masterbatch plunged in the European market affecting the color market sentiments. Europe's export-driven economy was getting impacted by the slowdown in global trade. Because of both sides' restrictions on energy supply, the global economy suffered from high inflation and country-specific central bank's controlling measures with an intermittent increase in interest rates. Demand from the agriculture sector remained weakened by the end of October, continuing throughout the first week of November as the period coincides with the off-season for cropping. The other major downstream sectors, such as aviation and automotive, have been lurching for growth in the new year as soaring oil and gas prices have dented new investments in these sectors.
For the Quarter Ending September 2022
North America
During the third quarter of 2022, the prices of Masterbatch increased steadily and reached a stable point by the end of the quarter in the North American region. The average monthly cost of Natural Gas in the United States of America climbed upperside, causing pressure on the Carbon Black market. Downstream compound manufacturers were in high demand at the beginning of the quarter, particularly those based on polymers and elastomers. Construction start-ups by carbon black enterprises were not highly motivated, and the overall start-up load had decreased dramatically.
Asia
The prices of Masterbatch were falling in the Indian market during the third quarter of 2022 and rising in the Chinese market, with prices hovering at USD 1173/ton Black Masterbatch FOB Taijin in August. Demand-wise, downstream tire manufacturers had a weak drive to begin development and fierce opposition to expensive Carbon Black in India. The market's overall trade climate was low, with items primarily purchased on demand. Prices of feedstock natural gas have been on a general rise in the Chinese market, leading to higher cost pressure for the Carbon Black market. The downstream compound manufacturers' orders continued to be strong, especially from the elastomer and Polymer-based compounders.
Europe
The price of Black Masterbatch decreased steadily in the European market during the third quarter of 2022 due to lowering consumption from downstream pigments and other colored products. At the beginning of the quarter, the downstream compound manufacturers were in high demand, particularly those based on polymers and elastomers. The inventories of Masterbatch were increasing in the regional market. As noted by the importers and exporters, the ongoing operational costs of Masterbatch in the domestic market were also one of the primary reasons for prices to become constant.
For the Quarter Ending June 2022
North America
The price of Masterbatch in the North American region fluctuated throughout the second quarter of 2022. The United States had sanctioned Russia's import and export of raw materials and other business due to the invasion of Ukraine. The limited product availability and insufficient supply increase the price of Masterbatch. Demand from the downstream, like automotive and packaging industries, increased the product's price. The Cabot Corporation has increased the prices of Carbon Black inevitably due to rising feedstock costs and other expenses to maintain the consistent regional supply. The cost pressure from upstream carbon Black strengthened and will continue its upward trend in the next quarter.
Asia Pacific
Throughout the second quarter of 2022, Masterbatch's price has been volatile in the Asian region. In India, the cost of Masterbatch increased in April, gradually fell in May, and slightly rose in June due to the demand from downstream polymer industries. The price of Black Masterbatch was settled at an inclination of 0.16% on an Ex-works Delhi basis. In China, the same price trend fell in May and suddenly increased in June. The price of natural gas and crude oil uncertainty in Asia leads to higher cost pressure for the Carbon Black Market. The cost of Masterbatch was recorded at an inclination of 1.5% on a FOB Tianjin basis during the second quarter.
Europe
In the European region, the price of Masterbatch upward trend throughout the second quarter of 2022. The demand from downstream packaged consumer goods, automotive, and transportation industries. The limited feedstock supply is due to the supply chain disruptions in the Eastern European tension. The European region limited their crude oil and natural gas purchasing from Russia and demand from the downstream industries. The high operating rates and tight supply further raised the price in the region. The increased demand from polymers industries in the domestic market has manufacturers tightening the supply due to insufficient product availability.
For the Quarter Ending March 2022
North America
Prices of Masterbatch were observed to be decreasing initially during the first quarter of 2022 but attained an increasing pace by the end of March. Masterbatch prices followed the same trend as the upstream, which was initially falling but later rose in the first quarter due to the hike in the natural gas prices. The demand for the product was robust throughout the quarter, and supply was limited, thus declining the inventories and increasing the prices in turn. The North American market witnessed a massive rise in demand for Masterbatch during this quarter, backed by firm offtakes from the regional polymer manufacturers. By the end of Q1, Masterbatch prices witnessed a rise by nearly 6% in the US market.
Asia Pacific
In the Asia Pacific region, prices of Masterbatch surged during the first quarter of 2022 because of the high feedstock prices. In recent months, Masterbatch prices have peaked in the Indian market because of the high feedstock Carbon black prices. A massive shortage of Carbon Black, one of the critical raw materials for manufacturing Masterbatch, has pushed many downstream electronics, packaging, and rubber industries to increase their prices. The supply shortage has also intensified after increased demand from the polymers and packaging sector. The intensified demand from the downstream packaging industry boosted the price of Masterbatch in Asia. Masterbatch prices in India surged by nearly USD 120/MT by the end of March.
Europe
Europe saw an escalation in the price of Masterbatch during Q1 2022 due to high demand from the downstream automotive, packaging films, pipes, and conduits industries. Besides, low imports from the US region levied a considerate impact upon Masterbatch prices. Moreover, various manufacturers in Europe were compelled to curtail their production because of the energy crisis and the scarcity of raw materials, which contributed to the inflation in the pricing trend of Masterbatch in the region. In addition, the rise in freight cost and other logistical issues halted the overall supply activities for polymers across the region. Therefore, amid stable offtakes for Masterbatch from the polymer sector during Q1 2022, prices remained stable to firm showcasing a fluctuation by nearly 3% in Europe.
For Quarter Ending December 2021
North America
The Trend of the upstream Carbon Black was on rise in the last quarter of 2021 due to the hike in the Crude oil prices. Despite the high feedstock prices the demand in the downstream electronics sector and automobile sector in America declined due to the Christmas season contributing to the downtrend of the Masterbatch prices in the US market. The sufficient supply of Natural gas from Trinidad and Tobago to the United States further stand by the declining trend of some masterbatch prices. Conclusively, Masterbatch prices remained firm throughout the quarter and rise of 2-4% was observed varied with different grades.
APAC
Masterbatch prices has been seeing an uprise on the last quarter of 2021 in the Indian market, the trend is largely due to the huge shortage of the feedstock Carbon black pigment. The demand from the downstream packaging industry intensified because of the festive season in India and contributed to the Price hike of masterbatch in the Indian market. The Chinese market saw a huge jump in the prices of last quarter of 2021 especially NOV due to the country’s new launched system (TPS) Tradable Performance Standard to monitor its carbon emission which poses a special tax on carbon products, since Carbon black is vital ingredient for Masterbatch, so the tax directly abides the upward trend of the masterbatch prices in the Chinese market. The price peaked to USD 1019/MT on NOV 2021 in the Chinese market.
Europe
The Declining trend of upstream polymers prices in the European market brought down the prices of the masterbatch in the last quarter of 2021. Despite the rise in prices of upstream carbon black in Germany during mid-NOV, it was not efficient enough to have any effect on the downward price trend of the masterbatch in Germany. Moreover, demand for the product from the downstream polymers sectors remained stable to firm in the meantime, while manufacturers heard battling with high input cost, resulting into cutting their profitability. Conclusively, price for different masterbatches varies throughout the quarter across European market, while maintaining overall buoyancy.
For the Quarter Ending September 2021
North America
During Q3 of 2021, Masterbatch market in North America appeared bullish due to the robust demand and limited supply, that kept the price trend high throughout the period. After the resurgence of the industrial and commercial activity the demand for polymers surged which eventually led to the increment in the masterbatch offtakes from the downstream manufacturers. Supplies were already tightened in the region and the calamity of the Ida hurricane in the Gulf Coast of USA in late August further squeezed the supply chains. It consequently led to a steep climb in the prices of Masterbatch and it is anticipated that the prices will remain the same trend in the coming quarter in North America.
Asia
In Asia, Masterbatch prices witnessed an upward trend during the third quarter of 2021 backed by several factors. Delayed imports as an impact of Ida hurricane and congestion on interoceanic trade routes along with constraint availability of shipping containers led to the shortage of the product that resulted into the record high prices of the product in the region. In India, the demand for Masterbatch remained sturdy throughout the quarter. Spike in the prices of Masterbatch was observed in the country due to the scarcity of the product backed by the expensive imports supported by high freight charges. Hence, Masterbatch market sentiments continued to stay buoyant throughout the quarter in India.
Europe
In Europe, Masterbatch market experienced an upward rally during the third quarter of 2021. High demand from the downstream industries and low imports from the US region due to the Ida hurricane impact levied a considerate impact upon Masterbatch prices. Moreover, various manufacturers in Europe were compelled to curtail their production because of the energy crisis as well as due to scarcity of raw materials which contributed to the inflation in the pricing trend of Masterbatch in the region. Besides, exorbitant freight charges also sent ripples to the cost of Masterbatch in this quarter.
For the Quarter Ending June 2021
North America
North American market witnessed a huge rise in demand for Masterbatch during this quarter, backed by firm offtakes from the regional polymer manufacturers. Entering Q2 2021, demand for several polymers revived and the consumption improved significantly in USA. However, the supply activities remained inadequate to satisfy the overall requirement of polymers in the country. Transportation issues also remained a major concern for the manufacturers, which disrupted the supply activities and polymer manufacturers faced shortage of raw materials especially in. Therefore, overall demand for masterbatch remained firm throughout the quarter across North America region.
Asia
Asian market witnessed mixed sentiments for masterbatch during this quarter, as the demand varied country over country. In China, economic rebound in the country, bolstered the demand for Masterbatch throughout the quarter, while the domestic consumption from polymer sector also increased in the meantime. On the other hand, in India, demand for polymers declined during the month of May, under the influence of second wave of Covid in the country. However, this demand improved later in June post the decline in new Covid cases. This revival in demand improved the consumption of Masterbatch in the country during June 2021 and thus supported its prices.
Europe
Europe encountered firm demand for Masterbatch from the regional polymer market, as the overall demand for polymers improved effectively compared to the previous quarter across the region. In addition, rise in freight cost and other logistical issues halted the overall supply activities for polymers across the region. Therefore, amid stable offtakes for Masterbatch from the polymer sector during Q2 2021, prices remained in a stable to firm range.
For the Quarter Ending March 2021
North America
The North American market faced firm demand for Masterbatch from several downstream segments. However, the production output of several polymers like PVC, PP, LDPE, HDPE etc remained critically low, especially during February which capped the consumption levels. Winter cold snap in the gulf of USA halted production activities across the region, which was the primary reason behind this lower output. Despite of this, demand for Masterbatch remained ideally stable across the region, that helped the prices to maintain stability throughout the quarter.
Asia
The Asian market encountered firm demand for Masterbatch from the downstream segments. Demand for polymers such is PVC, PP and PE remained high during the quarter, which propped up the demand for Masterbatch across the region. In the Chinese market, demand and production was temporarily halted during Lunar New Year holidays, which reduced the domestic demand for around 2 weeks, accelerated the prices of Masterbatch temporarily. In addition, sufficient improvement in the demand for polymers in the Indian market affectively improved the demand for Masterbatch in the country.
Europe
Europe encountered firm demand for Masterbatch during March after sufficient recovery from second wave of COVID 19. However, COVID restrictions in some European countries affected the demand as well as supply across the region. In addition, US gulf storm also reduced the trade activity between these two regions, and reduced the adequate availability of raw materials to satisfy the overall polymer demand. However, rapid vaccination drive, helped the market sentiments to improve efficiently till end of the quarter.
For the Quarter Ending December 2020
Asia
With a V-shaped economic recovery in Q4 2020 coupled with the festive demand in India, market sentiments for Masterbatch in the concerned quarter considerably improved. Plastiblend, a leading manufacturer of Masterbatch in India reported that due to the appreciable revival in market activities, their sales reached an all-time high in the quarter ending December. In line with a preferential improvement in the market fundamentals, prices of Masterbatch also revived in the final quarter after being badly hit during the pandemic. As per Polyblend, demand for black and white masterbatch reached an all time high with improved in demand the consuming segments like automotive and construction. China also witnessed appreciable demand for Masterbatches amidst the appreciable offtakes from downstream plastic and construction industry.
North America
Demand for Masterbatch remained firm in Q4 2020 weighed by the consistent surge in demand for downstream plastics. Although indefinite turnarounds implemented in several downstream polymer units under the spate of hurricanes in October impacted its overall demand fundamentals. Demand for black and white masterbatches from automotive industry marginally revived in comparison to the previous quarter but was still deemed low with respect to the pre pandemic levels. However, with heavy optimism prevailing from the upward crawl in crude values, manufacturers have remained optimistic over its demand recovery in the coming months.
Europe
Weak economic environment due the trace of New Coronavirus in several parts of the region led to a gradual decline in demand from Masterbatches from downstream industries. Since the supply remailed ample against its feeble demand, Masterbatch prices in several parts of the region lost grounds. As of November, operations in various industries of Europe tumbled under the force majeures implied on fears of new Coronavirus. Thus, overall revenues from the Masterbatch segment also dropped with respect to the previous quarter.
