For the Quarter Ending March 2022
North America
Nitro Benzene prices rose across the US market in the first quarter of 2022 due to the pressure from global crude oil prices. Amidst constant escalation in upstream value, major companies have been heard facing inflationary pressure. Onset of the Ukraine-Russia crisis in the last week of February drove up global crude oil prices, resulting in a sharp jump in raw material prices in the international market. Meanwhile, the overall upswing in Nitro Benzene prices in North America was backed by global economic recovery and seasonal demand. While growing raw material costs pushed up prices of downstream goods across regional markets, demand fundamentals for the product from the downstream Aniline market remained high. Nitro Benzene prices in the USA fluctuated in the range between USD 1250-1380/MT in Q1-2022.
Asia Pacific
During the first quarter of 2022, Nitro Benzene prices witnessed a significant growth backed by the increased demand from the downstream Aniline market. High crude values provoked traders to revise their offers in order to safeguard their profit margins. In China, the port disruption in Shanghai disrupted the trade activities and was also the major factor for the price growth. By the end of Q1 2022, the rise in COVID cases led to the production cuts in pandemic-affected areas, which raised concerns in the regional market. As per the ChemAnalyst database, the prices of Nitro Benzene settled at USD 1312 per MT CFR JNPT in March 2022.
Europe
In the first quarter of 2022, fluctuation in the feedstock Benzene prices resulted in mixed sentiments in Europe. The price decline was aided by the growing Omicron variant cases in Germany, which resulted in Nitro Benzene pricing limits. In early March, however, prices began to rise as a result of the rise in upstream prices. Russia is one of the largest exporters of natural gas and crude to Germany, and the unexpected escalation of tension between Russia and Ukraine has induced further climb in the prices of upstream Benzene, influencing Nitro Benzene pricing. Furthermore, rising Nitro Benzene demand from the downstream Aniline, Polyurethane, and MID markets pushed up the Nitro Benzene price by nearly 5% in Europe.
For the Quarter Ending December 2021
North America
In Q4 2021, Nitrobenzene market sentiments were observed to be buoyed in the US market backed by the improvement in the number of enquiries in the domestic market. Moreover, strong demand from the downstream Aniline and Synthetic rubber manufacturers also aided the inflation in the prices of Nitrobenzene in this timeframe. However, in November ample supplies and snapping upstream Benzene values resulted in relaxation in Nitrobenzene prices. In December, Nitrobenzene prices recovered back supported by sturdy demand and unprecedented rise in Benzene values.
Asia Pacific
In the Asia Pacific region, Nitrobenzene prices remained firm throughout the fourth quarter of 2021. In China, the Nitrobenzene market outlook was observed to be optimistic with progress in the offtakes from both local as well international markets. Moreover, soaring energy prices along with strong upstream Benzene and Nitric Acid values further aided the pricing trend in the country. Thus, Nitrobenzene FOB Shanghai prices were assessed at USD 1135/MT in December witnessing a hike of USD 102/MT since October. In India, the Nitrobenzene market witnessed mixed sentiments. In the period from October to November, Nitrobenzene prices had seen an upward trend as the values of imports from South Korea remained firm coupled with the improvement in buying momentum. However, in December Nitrobenzene prices eased backed by falling Benzene offers as well as lull trade activities due to year end. Thus, Nitrobenzene Ex-Mumbai prices rose effectively from USD 1412.43/MT to USD 1444.68/MT in the timeframe of October to November and settled at USD 1433.26/MT in December showcasing an overall hike since October.
Europe
In the European market, Nitrobenzene prices witnessed an exponential rise in the fourth quarter of 2021 supported by the strong feedstock Benzene values. Moreover, demand from the downstream Tyre manufacturers remained sturdy through the quarter. Additionally, an acute energy crisis due to supply crunches also led to expensive production that pushed the cost of Nitrobenzene further. Despite the relive in the freight charges in December Nitrobenzene prices continued to be buoyed because of firm prices of Benzene. However, buying sentiments became dull in the last month of the quarter due to year end.
For the Quarter Ending September 2021
North America
In the US, prices of Nitro Benzene displayed a steady fall in the first half of Q3 due to a plunge in the prices of upstream Benzene during the same time period. The prices however witnessed a short spike during the last week of August as hurricane Ida disrupted the supply chain logistics in the Gulf coast from where the major share of feedstock Benzene is sourced. Production had recovered over time as raw material availability improved during the end weeks of Q3. Prices are anticipated to further fall as feedstock Benzene prices are expected to continue their downward trend in the first half of Q4.
Asia
The overall market outlook showcased an upward trajectory in the third quarter of 2021 followed by the consistent demand from the domestic as well as international market. The prices rose effectively in China on the back of the increased upstream Benzene prices and high freight costs. In the Indian market, despite healthy demand for derivative Aniline, slow offtakes of Nitro Benzene from the automotive and rubber industry have overshadowed its rich demand as Aniline’s feedstock. Following an uptrend, prices shot up from USD 1289/MT to USD 1367/MT during Q3 2021. FOB Shanghai (China) Nitrobenzene assessments settled at $943/mt early in September. On the raw material front, Benzene supply tightness in China had been driven by lower production rates among some manufacturers and raised Benzene quotations for September by Sinopec. Fundamentals of several downstream products was relatively stable.
Europe
During the third quarter of 2021, the European Nitro Benzene price curve registered gains, taking cues from firm Asian stocks due to the high pricing environment for upstream chemicals and prevailing tightness in regional supplies. Margins stood firm in Q3 backed by strong sales while supplies remained tight as buyers relied upon Chinese supplies. A trader revealed that increment in raw-material prices and logistics costs have been passed on to the end customers. Soaring freight cost further exacerbated the pricing trend of Nitro Benzene across the region in Q3 2021.
For the Quarter Ending June 2021
North America
Nitro Benzene had a fair demand in the North American market during this quarter, backed by firm offtakes from the downstream derivative manufacturers amid the regional scarcity. Soaring Benzene cost due to prolonged material shortage after winter devastation, amplified the prices of Nitro Benzene across USA. The demand side remained firm from the downstream derivatives such as aniline and some agrochemicals. Supply from Asia remained under pressure with players struggling to build up sufficient inventories. Therefore, a steep rise in Nitro Benzene prices was noted across North America region during this quarter.
Asia
The Asian market had fair demand for Nitro Benzene during this quarter, supported by recovering economic activities and seasonal uptrend for the product. In China, prices kept on rising due to soaring feedstock Benzene prices which reached its highest on Y-o-Y basis, and the demand from the domestic and international market remained healthy throughout this quarter. The Indian demand was buoyed by ONCB and PNCB producers in the domestic market, while some uncertainties prevailed due to rapid surge in COVID cases between April-May. Nitro Benzene demand from the domestic Aniline and agrochemicals manufacturers remained stable during this timeframe which supported its price trend. Thus, the price of Nitro Benzene hovered around USD 878/MT and USD 937/MT for China and India respectively during June 2021.
Europe
Europe faced scarcity of Nitro Benzene during this timeframe, backed by firm demand from the domestic market and tight imports. Major European traders who were regulating the overall demand for the product received enquiries from the domestic agrochemicals sectors. Nitro Benzene prices gained momentum from soaring Benzene cost due to global scarcity amidst lower imports from major manufacturing countries. In addition, rising freight cost also exacerbated the overall price hike in Nitro Benzene prices during this quarter. Therefore, to maintain the margins, traders were raising their product prices to protect their margins.
For the Quarter Ending March 2021
North America
During this quarter, market sentiments for Nitro Benzene in USA remained high, backed by firm demand from the regional and international markets. However, the domestic output of USA was halted by sub-freezing temperatures, as major upstream plants encountered force majeures during mid-February. While the supply of Benzene remained critically low amidst unplanned plant shutdowns, prominent demand from the downstream sectors like for Aniline and MDI pushed up the regional Nitro Benzene offers.
Asia
The prices of Nitro Benzene took a sharp upturn in the Asian market, supported by strong downstream demand from Aniline manufacturers while the industry battered with critical shortage of upstream chemicals during the first quarter. Supply from the USA remained consistently low in the global market, while regular improvement in the crude oil values added an additional digit to the overall prices rise of Nitro Benzene. Meanwhile, in the Indian market prices showed substantial rise of more than 25% within the quarter and hovered around USD 1153.9/MT during March.
Europe
After the second wave of COVID-19, the European market experienced another fall in demand from the downstream sectors, as the industrial output reduced due manpower shortages amidst lockdown restrictions. Demand for Nitro Benzene from Aniline manufacturers showed marginal growth after February, as the successful roll out of vaccine paved the way for pick up in the industrial activities later in the quarter. Nitro Benzene prices showed a marginal improvement during the quarter with a considerable improvement in the upstream Benzene settlements.
For the Quarter Ending December 2020
Asia
During the October month of 2020 due to hurricane delta and Laura there were some logistics disruptions which caused a major gap in demand and supply fundaments of Nitro Benzene across Southeast Asia. The supply pressure eventually led to a two-fold increase in prices of Nitro Benzene in Q4 2020. Prices of Nitro Benzene continued to witness an upward crawl in the quarter ending December weighed the increase in prices of feedstock Benzene due to consistent increment in the values of crude. The CFR of Nitro Benzene in India in last quarter of 2020 averaged was USD 618.75 per MT.
Europe
During Q4 of 2020, prices of Benzene remained high due to its lower supply against appreciable demand across the region. Since Benzene is used as the feedstock to prepare Nitro Benzene, prices of Nitro Benzene also observed an upward climb during the last quarter of 2020. Although the demand in Q4 of FY20 was deemed low as compared to last year due to fear of new coronavirus and second lockdown across the region but was still little high with respect to the complete 2020. With revival in the values of crude, traders were heard optimistic over a substantial rebound in its values in Q1 2021.
North America
After months of low demand for Benzene, the petrochemical market seemed to have transitioned into a recovery phase in Q4. Supplies which were stranded due to lockdown and lack of manpower during corona were pushed quickly towards their destination in the final quarter. Benzene demand remained high during December month due to consistent surge in crude values and its limited supply into the region due to a spate of hurricanes. Thus, in line with the market fundamentals surge in Benzene prices ultimately affected the supply, demand, and pricing for Nitro Benzene as well in the region.
