For the Quarter Ending June 2022
North America
The n-Propranol market in the North American region staggered upwards within a rangebound amidst the gyration in the market dynamics throughout the second quarter of 2022. The n-Propanol market in the US witnessed significant cost support from the gyration in the upstream energy cycle after the western nations imposed sanctions on Russia. Furthermore, the n-Propanol producers are preparing themselves for the superfund tax implemented by the US authorities to clean up waste sites that cover a more comprehensive range of substances, including n-Propanol imported into the US domestic market. As a ripple effect, it strengthens the producer's will to raise the offered quotations for n-Propanol in the US. In addition, the US authorities were countervailing duty investigation on n-Propanol on the exported volumes to China.
Asia Pacific
In the second quarter of 2022, the n-Propanol market in the Asia Pacific region observed mixed sentiments besides varying market dynamics across the sub-region in Asia. The Northeast Asia market is consistently gyrated as the western sanctions on Russia's energy supplies have forced the market participants to restrategize the supply chain. The stricter restrictions of the Chinese authorities and resurgence of COVID in China significantly weighed over the n-Propanol market by weakening the producer's sentiments to ease the offered quotations in the domestic market. The prices for n-Propanol dropped by 12.6% since the start of 2022.
Europe
During the second quarter of 2022, the n-Propanol market in the European region remained bullish amidst the higher cost support from the upstream. The retaliatory sanctions on Russian energy supplies and the decision of the EU to put a complete embargo on the Russian Crude supplies have significantly impacted the domestic economy as the inflation shot up in the domestic market, and the market participants lean toward a conservative approach in the buying sentiments. Major market sources informed that the demand for the finished good is soaring much faster in the European markets.
For the Quarter Ending March 2022
North America
Prices of n-Propanol experienced an upward trajectory in North America due to consistent demand from domestic as well as the international market in Q1. Industrial intermediate and pharma remained major downstream driving sectors during this quarter in the USA, while most of the exports demand was also driven by these segments. However, overall buoyancy was induced after witnessing a sudden surge in upstream Crude oil with the impact of the Russia-Ukraine crisis. The price of n-Propanol for the US towards the end of the quarter surged to USD 1475/MT FOB Texas. Increased freight charges and container shortages further uplifted the prices across the North American region.
Asia Pacific
Soaring crude oil prices coupled with stable offtake from regional market pushed up the costs of n-Propanol in the Asian market. Since rising crude oil value has been a significant concern for downstream derivative players, they were compelled to raise their quotations timely to sustain margins. In addition, despite slow offtakes from the paints and coating sector during this quarter, the pharma sector maintained overall demand for the product. Furthermore, the rising infection rate of Covid-19 in China and lockdowns in Chinese cities, including ports, have disturbed the overall economic growth of the n-Propanol market. Thus, post witnessing a significant hike in the past two months, the price hovered around USD 1579/MT for n-Propanol Ex-Delhi NCR in the quarter ending March.
Europe
Firm demand fundamentals for n-Propanol from the pharmaceutical intermediates and industrial solvents supported the product’s outlook in Europe throughout the first quarter. Since February, constricted supplies with low production levels at several manufacturing units due to the geopolitical tension between Russia and Ukraine, along with surging freight charges, caused the prices to trace upward. The disrupted supply chain and limited availability of shipping containers further sent ripples to the n-Propanol prices in the region. Also, stable offtakes from the downstream pharmaceutical industry and solvent sector across Germany and United Kingdom held up the pricing dynamics. Thus, in March, the price discussions settled at USD 2000/MT for n-Propanol FOB Rotterdam.
For the Quarter Ending December 2021
North America
Despite, most of the chemical commodity’s prices heard climbing up across US market, n-Propanol maintained overall stability during this quarter. During October, traders heard revising their offers to sustain profitability, as input cost was rising effectively. However, during November crude oil prices fell which influenced price trend of several commodities including n-Propanol. Consequently, traders widened the window of negotiations, to sustain offtakes, which unexpectedly remained low. In addition, wavering demand also affected raw material cost, thus, plummeting raw material cost opportune producers to keep their price competitive. Conclusively, n-Propanol price assessed around USD 1150/MT during November.
Asia
n-Propanol offtakes remained dull throughout the fourth quarter 2021 as the demand from the downstream sectors remained muted. However, demand fundamentals varied with country over country and marginal fluctuations was observed during November. In China, dual energy policy reduced the overall country’s output, which affected the offtakes for n-Propanol from downstream derivatives manufacturers. Meanwhile in India, Offtakes improved during November, which eventually kept its downtrend continue till the end of December. n-Propanol heard hovering around USD 1065/MT India during mid of December.
Europe
Rising concerns over soaring energy prices, strained European producers and traders during this period. Critical shortage of natural gas resulted into steep hike in prices of several commodities regardless of low demand fundamentals. However, n-Propanol offtakes in Europe performed better than other regions on the back of sudden rebound in industrial activities. Furthermore, raw material prices showcased a steep uptrend in the meantime, which also affected the overall price trajectory for n-Propanol in the meantime. Therefore, n-Propanol price remained stable during this quarter across European market and some marginal hikes was observed.
For the Quarter Ending September 2021
North America
In the North American region, the domestic market demonstrated a slight upward trend during the 3rd quarter of 2021. In the US, n-propanol prices had been steady, and the trend continued throughout the quarter with marginal variations tending towards an upward slope. Demand from the downstream pharmaceutical and cosmetic industries supported the mild upward trajectory. Hurricane Ida's landfall disrupted the n-Propanol market marginally as prices saw a short spike in the last week of August and the first week of September. Prices had, however, stabilized over the closing weeks of Q3 owing to the recovery in the production.
Asia Pacific
During the third quarter of 2021, the n-Propanol showcased mixed sentiments across the Asia Pacific region however an increment in the demand was observed from the downstream sectors. As previously estimated, price dynamics changed frequently for n-Propanol in the Indian market, due to short-term changes in upstream prices. During the last weeks of Q3, prices declined effectively and later rebounded marginally due to changes in upstream cost. Prices were last assessed at USD 1158 per MT Ex-Kandla (India) in September. In addition, regional demand from the solvents sector maintained overall stability, while traders were expecting improvement in offtakes in the next quarter.
Europe
The prices of n-Propanol rose effectively in the European region during Q3 of 2021. Due to the supply scenarios in the domestic market, several producers implemented a rise in the prices of all propanol derivatives. Hikes in energy cost raised the offered quotations towards the end of Q3. Several market players awaited supplies to normalize and volumes to increase for any major ease in the regional pricing.
For the Quarter Ending June 2021
North America
During the second quarter, the North American region observed an exceptional demand for n-Propanol buoyed by seasonal pickup in demand from the paints and coating industries. Producers ramped up run rates to fulfil the n-Propanol enquiries which were piled up due to tightened market scenario since Q1. The supply demand imbalance resulted in surge in regional n-Propanol offers during Q2. Sasol announced positive price correction in n-Propanol rates by USD 567 per tonne effective from 1st June. Supply outlook in the North American market improved by June as the industrial activities in the Gulf coast restored from the devastating impact from the winter storm Uri. Although due to the uncertainty of the upcoming hurricane season, the buyers were booking for large orders to replenish the inventories levels. N-Propanol CFR Texas price was assessed at USD 2310 per tonne in June.
Asia Pacific
Amidst severe pandemic-related uncertainties with the arrival of deadly second COVID wave in India, the industrial activities were slackening in operations amidst the restricted commercial activities. Several downstream buyers were planning out to manage their inventory levels. In China, the n-Propanol market remained weak throughout the quarter taking cues from the cheaper feedstock and narrowed market spread, although the overall market outlook of n-Propanol stabilized in June. The pricing trend in India observed a major slump in the second quarter with Ex-Works Mumbai (India) discussion assessed at USD 1355 per tonne in June, reporting a downtrend of 16.42% from the prices in the previous quarter.
Europe
n-Propanol supplies in the European region improved compared to the previous quarter, as Oxea chemicals ended its prolonged turnaround in the second quarter, along with improvement in imported volumes from the USA. Demand surged phenomenally from the downstream paints and coating industries as the region witnessed seasonal inquiries from the construction sector throughout the quarter, although offtakes were consistent from the pharmaceutical and automotive sector. As a ripple effect, the n-Propanol prices remained firm on the back of strong demand in the second quarter.
For the Quarter Ending March 2021
North America
Extreme freeze weather conditions in the USA Gulf region negatively impacted n-Propanol supplies during the first quarter of 2021. Due to limited feedstock availability and adverse effects of the winter storm, a major production facility of capacity 250,000 MT/year of n-Propanol was temporarily shut down during mid-February. Exports to other countries were hampered due to disrupted trade in the region. Demand however surged amidst tight supplies as the offtakes from the solvents sector increased in the first quarter. OQ Chemical surged the prices of n-Propanol by +USD 120/MT in the first half of the quarter.
Asia-Pacific (APAC)
n-Propanol supplies in the Asia Pacific region were balanced-to-tight during the Q1 2021. Prices showed an astonishing spike in March buoyed due to sudden decline in imports from the US. The freezing snap in the US has affected n-Propanol production as well as export potential considerably and has laid a direct impact upon the supplies of several Asian and European countries. Due to improved consumptions from the paints and coatings, and Antifreeze sector the n-propanol supplies witnessed an upsurge in Q1. The significant hike on the prices of Crude oil proportionally impacted the prices of n-Propanol in the APAC region.
Europe
The European n-Propanol market was severely impacted by the supply shortages throughout the quarter in 2021, as the refineries operating rates were affected in the northwest region amid the cold weather, followed by the reduced imports from the USA. OMV announced to build a 1.25 million liters/year facility to produce n-Propanol in Schwechat Facility. Demand from the downstream sectors was ample as offtakes from paints and coatings sector improved.
For the Quarter Ending December 2020
Asia
n-Propanol supply across Asia was observed getting firmer by the end of the Q4 with the prices gradually decreasing due to strong supply. Spot prices of n-propanol were observed to be hovering around USD 1520 per tonne FOB China. The downstream demand from the solvent industries tumbled, thus pressuring the rates of n-Propanol in the regional market. In India, demand outlook remained stable with prices witnessing a fall by USD 108/tonne between October to December, while maintaining an average of USD 1575/tonne during the quarter.
Europe
The demand for n-Propanol remained stable in the first half of the fourth quarter which subsided later due to fall in demand. However, some producers sought for increase in prices as it was being largely used as a substitute for IPA. Towards the end of the year, fresh lockdowns imposed due to new wave of infections disrupted the demand for the downstream products. The surge in crude oil however, supported the price curve by a significant percentage.
North America
Due to strong demand of the n-Propanol and inclining prices of upstream products, leading US producers escalated the prices for n-Propanol during Q4 2020. A prominent factor which affected the supply of n-Propanol in the North American region, was power and production outages due to weather related challenges in the US. By the end of the fourth quarter, some propanol dealers made upward adjustments to pass on the price increases of upstream crude oil to its end consumers, which had a little impact on the overall market trend.
