For Quarter Ending December 2021
Due to the severe energy crisis in the United States, there has been a shortage of upstream heavy metals for half a year, driving up the price of Metal biocides significantly in the fourth quarter of 2021. Because of increased demand from downstream sectors such as paint and varnish to repair damage caused by severe storms in Q3, metal biocides prices rose in the fourth quarter of 2021. Prices are likely to continue an uptrend in the coming months due to the further pickup expected in the market activities in the upcoming quarter.
Due to the festive season in India in Q4, there was a large increase in demand for Metal Biocides from the downstream paint and varnish industry. According to the Ministry of Mines, which hiked metal biocides prices in India during Q4, production of upstream heavy metals such as copper was lower than in prior years. Metal Biocides prices in China were dropping due to abundant upstream copper production, and they even recorded the highest copper exports in Q4 of 2021 due to worldwide demand.
During the last quarter of 2021 in Europe, the home improvement sector was quite in demand which stimulated demand for downstream sectors like varnishes and paints. Upstream Industrial metal prices climbed as the worry of the omicron variant grew. During the last quarter of 2021, the price of metal Biocides in Europe inclined due to growing metal prices and increased demand in Europe.
For the Quarter Ending September 2021
The US Metal Biocides market outlook continued to remain positive for the third quarter of 2021. Driven by high prices of heavy metals during FY21, several market players had been squeezing higher margins over contracts of Metal Biocides. Tight supply of heavy metals due to ongoing energy crisis in the US, and strong external demand from the paints and varnishes market remained some of the factors that keep the prices of Metal Biocides afloat in the domestic market. Performance of the consuming sectors remained robust on continuous operational improvement in the downstream.
The Asian market outlook showcased an upward trajectory in the 3rd quarter of 2021. In India, demand for Metal Biocides has been improving since July after witnessing prolonged dullness under the second wave of the pandemic in the country. However, overall demand fundamentals from downstream paints & Coating segment observed significant recovery by the end of September, as automakers and paint manufacturers were heard ramping up their production. Moreover, as per market sources, inquiries for metal biocides improved exponentially compared to the previous quarter across the Indian market, supported by reviving economic activities under the optimism of festive demand in Q4.
The European region witnessed a steep rise in the pricing trend of Metal Biocides during Q3 of 2021. Several European producers ramped up operational capacity to cater to the rising consumer demand in the third quarter. Offtakes from the paints and coating sector improved in Q3 due to the increased construction activities. Amidst pressured margins, producers passed on higher costs to the end customers by raising prices. Operating rates and margins were highly impacted by the high energy cost and soaring raw material prices during Q3. A leading producer announced to increase the capacity of certain product lines, including biocides to meet higher requirements from the end customers.
For the Quarter Ending June 2021
During the second quarter of 2021, Metal Biocides market outlook improved in comparison to the previous quarter, as the supply rebounded amidst the restoration of industrial infrastructure in the Gulf Coast. Operating rates in various refineries returned to normalcy, but due to the rise in inflation on global scale prices of heavy metals in the region surged. As a ripple effect, price of Metal Biocides in the North American region witnessed upward trajectory, as the offtakes from the paints and coating sector surged. Demand outlook bolstered amidst the seasonal increment in the construction activities.
Supply in the Asia Pacific region was negatively impacted by feeble offtakes of heavy metals in China. Therefore, due to the sluggish demand from downstream, heavy metal producers reduced the operating rates hence, market outlook of heavy metals marginally surged with limited supplies in the second quarter. Demand remained persistent from the downstream paints and coating sector as the construction activities improved in the second half of the quarter. There prices of Metal Biocides fluctuated in a stable to narrow range in the quarter ending June 2021.
In the European region, production rates in several refineries surged post winter season, which supported the improvement in the regional supply of Metal Biocides, in Q2 2021. The arrival of US cargoes along with the backlog deliveries strengthened the market sentiments but narrowed the demand and supply gap. On the positive front, offtakes surged in the second quarter as the region observed a seasonal hike from the downstream building and construction industries. Due to the hiked demand and ample availability of upstream prices remained in uptrend throughout the region.
For the Quarter Ending March 2021
The North American Metal Biocides market was vastly impacted due to the shortages in supplies in Q1 2021, owing to the sub-zero temperature in the Texas and nearby Gulf region. The industrial infrastructure was not able to sustain such low temperature thus forced the domestic producers to shut down production for several weeks. Demand from the paints and coating industries surged amid the global supply shortages. ZEN Graphene Solutions announced to the ramp up of its biocidal coatings productions to meet the robust demand from the PPE protective equipment and air filtration market.
The demandfor Metal Biocides in the Asia Pacific remained stable in the first quarter of 2021, owing to the ample offtakes from the recovering paints and coatings. Whereas the supplies were balance to tight in the first quarter due to plant turnarounds during the Chinese lunar New Year holidays against the diversion of cargoes towards the northeast region in anticipation of better netbacks.
During the first quarter, Metal Biocide supplies in the region remained balanced as the production rates at major manufacturing facilities was deemed normal. However, some constraints were witnessed amid the decline in shipments from the US. Demand was balanced as the industrial and commercial operations were limited due to the strict lockdown in several parts in the region. However, offtakes from the paints and coating sector were improved due to increase in construction activities in the European region.
For the Quarter Ending December 2020
In the Asian region supplies were surged, after the restriction eased across the region. The major economies started recovering resulting in the rebound of paints and coatings sector. The Metal Biocides sector continuously grow during and after the pandemic restrictions as the demand from the downstream cleaning sector spiked, in regard of the people following more hygienic routine in day-to-day life. Metal Biocides demand in Asia witnessed an uptrend in the fourth quarter, buoyed by the increment in consumption of cleaning applications and boosted demand from the coatings industry.
Despite restrictions and monitored manufacturing of Metal Biocides in Europe regarding environmental concerns, the supplies improved in the fourth quarter of 2020. The demand in the European region surged due to the second lockdown amid uncertainties regarding the COVID spread. Intake from the paint and coatings industry was hampered by temporary recession in the European automotive sector caused by the lockdown in several countries. The leading producer of Metal Biocides offered a price range of USD 3500 per ton for Nipacide BIT AS 20 grade Metal Biocides in Q4.
North America is the leading Metal Biocide producing region. Supplies remained lengthened throughout the fourth quarter due to COVID related uncertainties. Rise in the consumption of cleaning applications lead to the accelerated manufacturing of disinfectants, sanitizers, and other cleaning products. Troy Corporation, a major Metal Biocides producer in the region introduced two new advanced rheology modifiers in their facility. The demand of Metal Biocides surged driven by the rebound of the automotive, construction and paint and coating industry.