For the Quarter Ending December 2022
During the fourth quarter of 2022, the market value of Nitro Benzene in the North American market showcased mixed sentiments owing to fluctuations in downstream demand from the automotive and construction industries. Due to the unequal growth pattern of downstream industries throughout the course of the quarter, the domestic market's demand for Nitro Benzene from these industries remained unsteady. Furthermore, another factor that affected the growth of the Nitro Benzene industry included inconsistent production and upstream costs. Consequently, the price trend for Nitro Benzene decreased in October, increased in November, and then decreased once more in December. Nitro Benzene's evaluated value in the USA during December was USD 3290/MT CFR Texas.
Amidst sluggish downstream demand and decreased upstream costs in the fourth quarter of 2022, Nitro Benzene prices fell steadily in the Asia-Pacific region. As the downstream automotive and construction sectors underperformed in terms of output and market performance, the demand for Nitro Benzene fell during the quarter. Furthermore, the production cost for Nitro Benzene decreased over time owing to lesser energy prices, which ultimately led to a decrease in the product's market value. Because of this, the evaluated price for Nitro Benzene in China for the month of December was USD 1138/MT FOB Shanghai, which was 8% less expensive than the price in September.
Amidst fluctuating downstream demand from the construction and automotive industries, the market value of Nitro Benzene in the European market displayed mixed attitudes during the fourth quarter of 2022. The domestic market's demand for Nitro Benzene from these industries remained unsteady due to the downstream industries' uneven growth patterns over the course of the quarter. Inconsistent manufacturing and upstream costs were further factors that impacted the Nitro Benzene market. The price of Nitro Benzene thus increased till November, only to decrease in December 2022. The evaluated price for Nitrobenzene in Germany during December was USD 3730/MT CFR Hamburg, which was 22.7% more than the price in September.
For the Quarter Ending September 2022
The price trend of Nitrobenzene has demonstrated a downward trajectory in the third quarter of 2022. The US market has witnessed tight monetary policies to combat the raging inflation. On the upstream cost front, the feedstock Benzene values have continuously dropped in Q3, backed by a decline in inquiries from downstream derivative industries. In the mid-Q3, natural gas prices propelled, but the inquiries from downstream Aniline manufacturers were limited. As a result, the market transactions for upstream Nitrobenzene were slower-than-expected. Furthermore, the port congestion at US East Gulf costs has disrupted trade activities, elevating the inventory levels at the manufacturing sites. To maintain the supply-demand balance, the manufacturers have reduced the operating rates in the domestic region and offered the product at slashed prices to the end-use industries.
The declining downstream derivative Aniline market has dragged down Nitro Benzene prices in India during the third quarter of 2022. In addition, the decreasing price trend of upstream crude oil also affected Nitro benzene pricing. As a result of plunging consumer demand, market purchases were falling in the Asian market. The prices of Nitrobenzene were observed to be hovering at USD 1237/ton Nitrobenzene FOB Shanghai during September, as recorded by ChemAnalyst pricing team data. Meanwhile, Japan and South Korea saw an upward see-sawing trend in Nitrobenzene prices. Therefore, the imported cargo in the regional market was also standard, resulting in an increasing price trend. Traders were also encouraged to follow the same pattern because the factory-side price was high.
Prices of Nitrobenzene showed mixed sentiments in the European market during the third quarter of 2022 due to fluctuation in the feedstock prices. During the initial Q3, Nitrobenzene prices increased, backed by high inflation, turmoil in the energy prices, and Bullish raw material Benzene prices. However, during the mid and end of Q3, Nitrobenzene prices declined, backed by the high inflow of cheap imports from Asian countries like Malaysia, China, Singapore, and others. Meanwhile, in Europe, domestic production remained under pressure amid the high cost of production as the energy prices drive the operating costs. Demand from the downstream paints, coating, and allied industries has remained weak due to the high inflation rate. Furthermore, the supply chain remained under pressure as Europe faced upheaval from port congestions and labor strikes. Hence, as a result, prices of Nitrobenzene plunged by more than 10% during September 2022.
In the second quarter of 2022, the price of Nitro Benzene showcased a mixed sentiment in the US market. Initially, the price of Nitro Benzene rose following the price trend of upstream Crude and feedstock benzene. The tight supply of Crude in the domestic market due to sanctions on importing Russian Crude has been boosting the Nitro Benzene pricing. Later, the prices started to drop as the demand for the product declined in the domestic market. Moreover, downstream derivative market production plunged as consumer demand fell and the market buying plummeted, which dragged down the Nitro Benzene prices. Also, the declining requirement from the regional markets negatively impacts the Nitro Benzene market.
The Nitro Benzene market witnessed an uptrend during the second quarter of 2022. The price rise was supported by the increasing demand for the product in the domestic market due to the healthy buying activities from the consumer end. The production of downstream derivative Aniline increased due to which the requirement for the commodity. Also, the upstream crude prices rose significantly, inflating the Nitro Benzene pricing. In addition, the rising freight charges also added fuel to the already increasing prices. The factory side price was high, which forced the traders to follow the same trend. However, the import charges were also high, further pushing the Nitro Benzene market.
In the second quarter of 2022, Nitro Benzene prices rose in the German market. Due to the supply shortage, upstream Crude values increased, which supported the price rise. As a result of the situation between Russia and Ukraine, the EU government implemented sanctions on Russian oil imports, which curtailed the supply of Crude. In addition, there was a rise in demand from manufacturers of Aniline, a downstream derivative, which raised the price of Nitrobenzene. The suppliers were forced to raise their offerings to safeguard their margins due to the high level of purchasing activity in the domestic market and the constrained supply. Additionally, the rising cost of gasoline has a favorable effect on freight rates, which raises the price of Nitrobenzene.