For the Quarter Ending March 2025
North America
Nitrobenzene prices in the U.S. trended downward throughout Q1 2025, reflecting a continued imbalance between weak demand and steady production. The market faced persistent pressure as sluggish consumption from downstream sectors like aniline, dyes, and rubber chemicals coincided with inflation-driven feedstock volatility and broader macroeconomic uncertainty.
Production in the U.S. remained stable, but rising energy costs, freight disruptions, and labor-related cost inflation added strain to producer margins. Meanwhile, feedstock benzene prices faced volatility, driven by geopolitical risks, crude oil fluctuations, and tariff uncertainties affecting imports from major trade partners such as Canada, Mexico, and China. Although some producers frontloaded shipments in anticipation of tariff hikes, operating rates stayed modest due to tepid demand recovery.
Demand from key end-use sectors showed only limited signs of improvement. The tire and automotive sectors—which rely on aniline derivatives—remained flat as the construction and transportation segments battled high borrowing costs and low project activity. Meanwhile, the polymer and coatings markets exhibited weak growth despite ongoing R&D investment in solvent applications, reflecting a cautious stance among manufacturers. With demand recovery lagging and trade policies continuing to disrupt cost structures, U.S. nitrobenzene prices closed Q1 on a bearish note.
APAC
Nitrobenzene prices in China averaged USD 1,071/MT FOB Shanghai in Q1 2025, marking a 4.4% decrease from Q4 2024’s average and an 18.8% drop year-on-year from Q1 2024. Prices softened from January to March, as balanced feedstock costs and ample domestic supply countered only modest downstream demand.
Production levels remained stable throughout the quarter, supported by consistent benzene and nitric acid availability. China’s crude oil throughput rose 2.1% YoY to 119.17 MMT over Jan–Feb 2025, but weak refining margins and cautious operations by independent refiners limited further feedstock cost volatility. Export flows and high inventory levels helped keep the nitrobenzene market well-supplied, with no major disruptions reported.
Demand from the aniline and dye sectors improved moderately, supported by a post-holiday pickup in construction activity and real estate sentiment. Meanwhile, the tire manufacturing sector saw significant growth in January and February, contributing to firm demand for aniline—a key nitrobenzene derivative. However, global dye export weakness and cautious FMCG-linked procurement limited broader consumption recovery, keeping price movements in check.
Europe
Nitrobenzene prices in Europe declined through Q1 2025, reflecting sustained weakness in feedstock costs and tepid demand from key downstream industries. After a modest rebound in February, values fell again in March due to subdued consumption and ample supply across the region. Compared to the same period last year, Q1 2025 marked a sharper downturn, driven by sluggish industrial activity, falling benzene feedstock prices, and cautious procurement behavior.
Manufacturing and supply conditions remained stable throughout the quarter. European producers operated at normal rates, supported by consistent raw material availability. However, soft benzene fundamentals, driven by falling crude oil and naphtha prices, weighed on overall production economics. Regional supply chains normalized after Q4 congestion, but growing benzene shortages in the Mediterranean prompted increased intra-EU trade. Rising LNG costs and fears of another energy crunch added further uncertainty to forward-looking cost structures.
Demand across downstream applications stayed uneven. The aniline and dye sectors showed limited recovery, while coatings and solvents demand in the polymer industry remained stable but uninspiring. The paints and coatings segment continues to show structural resilience, underpinned by innovation and R&D, but competitive pressure from cheaper imports and weak construction activity capped volume growth. Automotive-linked polymer usage remained cautious amid inflationary headwinds and low new order volumes.
For the Quarter Ending December 2024
North America
In Q4 2024, the U.S. nitrobenzene market experienced fluctuations driven by weak demand from key downstream sectors, feedstock price volatility, and broader economic uncertainties. Early stability in production costs provided some support, but sluggish activity in derivatives like MDI constrained market recovery.
Declining crude oil and naphtha prices further impacted the value chain, while the upcoming U.S. presidential election heightened concerns about potential market oversupply, adding to uncertainty. Geopolitical tensions in the Middle East and delayed OPEC+ production cuts created additional short-term pressures. Internationally, weakened manufacturing activity and declining factory orders in Europe affected nitrobenzene export sentiment.
The U.S. market faced challenges from elevated inventories, cautious procurement strategies, and reduced refining margins, maintaining a bearish outlook for the quarter. However, optimism for early 2025 remains, with expectations of improved demand and potential economic adjustments supporting a gradual recovery. Meanwhile, OPEC+ postponed production cuts, providing short-term support to crude oil prices. Escalating geopolitical tensions in the Middle East further contributed to price volatility.
APAC
In Q4 2024, the Nitrobenzene market exhibited bearish trends, with prices largely stable but under pressure from subdued demand and regional dynamics. Early in the quarter, rising crude oil and blending component costs supported slight upward momentum, but weaker feedstock prices and cautious procurement led to consolidation in the latter half. In Northeast Asia, oversupply challenges persisted due to reduced MDI sector demand, stable prices, and sluggish domestic recovery, with FOB Shanghai prices ranging from USD 1300-1100 per metric ton. In China, robust demand from the automotive and tire manufacturing sectors, bolstered by record EV sales and increased tire exports, drove early growth, though logistical issues and raw material fluctuations tempered momentum towards the quarter’s end. Globally, weaker export demand, particularly in Europe, combined with high inventories and geopolitical complexities, exerted downward pressure on prices. The outlook for early 2025 suggests cautious optimism, with potential improvement from pre-Lunar New Year stocking and tighter benzene supply. Furthermore, the inventories in the market remained on the higher side leading to further subdued rates of stocks in the market.
Europe
In Q4 2024, the European nitrobenzene market experienced volatility driven by fluctuating feedstock prices, subdued demand from key downstream sectors, and broader economic uncertainties. While the market saw relative stability early in the quarter due to steady production costs, weak demand from MDI production and other derivatives limited recovery. Declining crude oil and benzene prices lowered production costs, but high inventory levels and cautious procurement strategies suppressed price improvements. Manufacturing activity across Europe remained under pressure, with significant declines in major economies like Germany and France, although the pace of contraction eased slightly towards the end of the quarter. Logistical disruptions from earlier port delays subsided, but holiday closures temporarily affected supply chains. Demand from key downstream sectors, particularly MDI, remained muted due to oversupply and reduced consumption, while structural challenges in the construction and automotive industries further dampened growth. Limited activity in other aromatics contributed to the bearish sentiment that dominated the market. Despite these challenges, the outlook for 2025 carries cautious optimism, with potential interest rate cuts, improved inventory management, and stabilizing global supply chains offering hope for gradual recovery in the nitrobenzene market. Market recovery will depend on improving demand from downstream industries and stabilizing global supply chains. Despite these challenges, there is cautious optimism for a gradual rebound in the coming months.
For the Quarter Ending September 2024
North America
In the third quarter of 2024, Nitrobenzene prices in North America displayed a mixed pattern, driven by solid demand from the pharmaceutical and agrochemical sectors. The upward pressure on prices was primarily influenced by rising raw material costs, particularly for benzene, due to geopolitical tensions and ongoing supply chain disruptions. These factors contributed to price increases across the region throughout the quarter.
Despite this, the market faced significant challenges, including an oversupply in some segments and competitive pricing strategies from key suppliers, which moderated the overall price growth. Nitrobenzene, in particular, showed a positive year-on-year price trend, although prices peaked in early September before experiencing a slight decline by the end of the quarter.
Overall, North America's Nitrobenzene market remained resilient, with stable demand driving recovery and maintaining a positive pricing sentiment. While short-term fluctuations occurred, prices remained higher than in the same period the previous year, reflecting the ongoing recovery and strong market fundamentals that shaped the quarter’s outcome.
APAC
In Q3 2024, Nitrobenzene experienced a mixed trend in prices across the APAC region, primarily driven by heightened demand in the pharmaceutical and agrochemical sectors. Several key factors influenced these market price hikes, including increased raw material costs, particularly those of benzene, stemming from geopolitical tensions and supply chain disruptions. Additionally, seasonal demand upticks due to monsoon intensified the price escalation. Despite these upward pressures, the market faced challenges such as oversupply in certain segments and aggressive pricing strategies by Chinese suppliers, which moderated the overall price rise. Focusing on Japan, which saw the most significant price changes, the overall pricing trend for Nitrobenzene has been mixed. The price assessed at the end of the quarter remained 19% higher than the price assessed last year indicating year-on-year growth in Nitrobenzene prices, especially in Nitrobenzene, however the prices began their recovery in second quarter from the price of FOB Osaka assessed around USD 1530/MT on 29th September 2024. The prices dropped by 1% cumulatively in Q3 2024. This quarter's pricing environment has been predominantly positive, marked by recovery and strong demand dynamics, despite some offsetting factors, establishing a stable yet ascendant market sentiment.
Europe
In Q3 2024, Nitrobenzene prices in Europe exhibited a mixed trend, influenced by a combination of strong demand and external market factors. The pharmaceutical and agrochemical sectors continued to drive demand, contributing to upward pressure on prices. Additionally, raw material costs, particularly for benzene, remained elevated due to geopolitical tensions and persistent supply chain disruptions. These factors played a significant role in pushing prices higher during the quarter. However, the market also faced notable challenges. An oversupply in certain segments, along with aggressive pricing strategies by some key suppliers, created downward pressure that tempered the overall price increase. Despite these headwinds, the pricing trend for Nitrobenzene remained positive year-on-year. Prices, which had peaked in early September, showed signs of stabilization towards the end of Q3 2024, with a slight cumulative decline. Nevertheless, the overall pricing environment in Europe remained favorable. Strong demand fundamentals, coupled with recovering market conditions, ensured that the quarter ended on a positive note, with prices higher than the previous year's levels, despite short-term fluctuations.
For the Quarter Ending June 2024
North America
The North American Nitrobenzene market exhibited a mixed pricing structure in Q2 2024, influenced by a confluence of countervailing factors. While a decrease in feedstock costs, particularly Benzene, initially exerted downward pressure on Nitrobenzene pricing, a concurrent rise in sulfuric acid costs, attributable to geopolitical tensions, counterbalanced this effect. Further exacerbating price volatility were supply constraints arising from production facility shutdowns. Geopolitical uncertainties and the impending hurricane season compounded these supply chain disruptions, intensifying cost pressures. Additionally, downstream industries, such as MDI producers, engaged in significant forward buying and inventory accumulation in response to elevated crude and natural gas prices, further impacting market dynamics.
Focusing on the United States, which witnessed the most pronounced price fluctuations, the overall Nitrobenzene pricing trajectory demonstrated a bimodal distribution. The first half of the quarter remained relatively stable, followed by a pronounced upward trend in the latter half. Seasonal factors, such as the surge in demand associated with Memorial Day, coupled with strategic stockpiling activities, contributed to this bullish price movement.
In conclusion, the prevailing pricing environment for Nitrobenzene has been largely positive, driven by robust demand, constrained supply, and escalating feedstock costs. These factors collectively contribute to an increasingly optimistic market sentiment, characterized by expectations of continued price increases
APAC
The second quarter of 2024 has seen a moderate increment in Nitro Benzene prices across the APAC region, driven by several influential factors. The market dynamics have been primarily shaped by currency fluctuations, rising raw material costs, and a robust demand from downstream industries including pharmaceuticals and construction materials. The availability of key feedstocks like Benzene and Nitric acid has been a recurring challenge, exerting upward pressure on market prices. Additionally, heightened freight costs and logistical bottlenecks have further compounded the situation, leading to tighter supply chains and escalating prices. In Japan, the pricing environment has been particularly dynamic, with the country experiencing the most significant price movements. Seasonal trends have played a crucial role, with demands spiking due to increased construction activities and heightened export orders. This quarter exhibited a pronounced price sensitivity compared to the same period last year, reflecting a substantial 39% increase, as Asian markets previously de-stocked significant volumes out as global demand fell. Interestingly, the average prices have seen a 6% decline from the previous quarter, suggesting a complex interplay of supply constraints and stabilizing factors in the short term. Furthermore, Q2 showed the first half having higher upward price movement at faster pace than the latter half, underscoring the that markets were in the initial days of Q2 were more optimistic. This pricing trend is indicative of a positive environment, despite occasional stabilization phases. The latest quarter-ending price for Nitrobenzene CFR Kobe in Japan stands at USD 1590/MT, consolidating the overall increasing sentiment in the market. The robust demand, coupled with supply chain challenges and raw material cost pressures, has perpetuated a bullish outlook for Nitrobenzene prices throughout Q2 2024.
Europe
The European Nitrobenzene market experienced significant price fluctuations throughout Q2 2024, influenced by a complex interplay of opposing forces. Initially, a decline in feedstock costs, particularly Benzene, exerted downward pressure on Nitrobenzene prices. However, this trend was countered by a concurrent rise in sulfuric acid costs, primarily driven by geopolitical tensions. Further factors complicating the market dynamics were supply constraints stemming from production facility shutdowns. Geopolitical uncertainties and the anticipation of a disruptive hurricane season exacerbated these supply chain disruptions, leading to intensified cost pressures. Additionally, downstream industries, particularly MDI producers, engaged in substantial forward buying and inventory accumulation in response to rising crude oil and natural gas prices. This strategic behavior further impacted market stability. Europe, in particular, witnessed the most pronounced price variations. The overall pricing trajectory exhibited a bimodal distribution, with relative stability characterizing the first half of the quarter followed by a sharp upward trend in the latter half. This bullish price movement was driven by a confluence of factors. Firstly, seasonal factors, such as the surge in demand associated with the recovery in construction and automotive sectors, played a role. The increasing focus on sustainability within these industries, coupled with the higher demand for MDI (a key Nitrobenzene derivative), contributed to this demand surge. Secondly, strategic stockpiling activities by market participants further fueled the upward price movement. In conclusion, the dominant sentiment surrounding Nitrobenzene pricing in Europe remains largely positive. This optimism stems from a combination of factors, including robust demand across various sectors, constrained supply due to production issues and geopolitical uncertainties, and escalating feedstock costs. These elements collectively contribute to an increasingly bullish market outlook, with expectations of continued price increases in the foreseeable future.
