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.
For the Quarter Ending March 2024
North America
Prices of Nitrobenzene in North America turned bullish in the first quarter of 2024 owing to easing of downturns and cooling off of contracts for energy and gas supply. Pricing insights and data US reveals significant improvement in prices were observed from January as benzene supply contracts turn higher by 5% Q-o-Q basis with spot prices recovering after downturns in the industrial production eased by February as temperatures rose.
Supply of Nitrobenzene largely remain domestic into North American markets with Korea being the major suppliers from overseas. Downturns in MDI production eased with newer orders for isocyanates in North America improving as inventory pressure enlarged. Newer contracts for energy supply beginning January 2024 show significant reduction in premiums offered as gas prices remained relatively lower than historical averages in the spot markets as gas inventories remained on the higher end. Eastman’s major Nitrobenzene plant in US began operating at higher volumes by the second month of the quarter as supply lines for Benzene prices further tightened due to Arctic blast in the month of February. With prices recovering due to elevated prices, exports of Nitrobenzene to Germany and Belgium due to easing of downturns in European production, though German domestic demand remained subdued.
Overall, Prices showed strong recovery after weak Q4FY23-24, inventory adjustments and subdued consumption due to higher interest rates and downturns in automobile and construction demand in USA. Prices are expected to settle down as shipping to go offseason in the next quarter intensifying inventory pressure in domestic as well as export market coupled with chances of rate cuts and markets adjusting their inventories and jump to spot markets for higher deliveries.
Europe
Prices of Nitrobenzene in Europe turned bullish in the first quarter of FY24-25 owing to easing of downturns and cooling off of contracts for energy and gas supply. Pricing insights and data from Germany reveals significant improvement in prices were observed from January as benzene supply contracts turn higher by 8% Q-o-Q basis with spot prices recovering after downturns in the industrial production eased by February as temperatures rose.
Supply of Nitrobenzene largely remain imported into European markets with Japan, Korea and US being the major suppliers. Downturns in MDI production eased with newer orders for isocyanates in Europe improving as inventory pressure enlarged. Newer contracts for energy supply beginning January 2024 show significant reduction in premiums offered as gas prices remained relatively lower than historical averages in the spot markets as gas inventories remained on the higher end. Eastman’s major Nitrobenzene plant in UK began operating at higher volumes by the second month of the quarter as supply lines for Benzene from Netherlands settled. With easing energy cost, imports of Benzene from Netherlands and Belgium improved in Germany, though German domestic demand remained subdued.
Overall, Prices showed strong recovery after weak Q4FY23-24, inventory adjustments and subdued consumption due to higher interest rates. With England leading a strong discounted market for mortgages, Netherlands, Italy and France followed the suit and stimulated their construction sector, though downturns and demand for construction chemicals like Polyurethanes remained lower than historical averages, pending orders have declined significantly.
Asia Pacific
The first quarter of 2024 has been a mixed period for Nitrobenzene pricing in the APAC region. Market prices have seen a significant increase, with a 16% rise compared to the same quarter last year, and by the end of the quarter, a decline of 12% was observed. Japan has experienced the most notable price changes in the region. Overall trends in the Japanese market have been influenced by seasonality and other factors including Lunar New year festivities and Noto Earthquake supply line disruption. The price change from the previous quarter reflects that the quarter end bullish sentiment offset the February slump in prices. Compared YoY basis, prices remained 27% higher due to costlier inputs.
The latest quarter-ending price for Nitrobenzene in Japan was recorded at USD 1530/MT CFR Kobe. This price indicates a positive pricing environment, as it marks a significant increase due to quarter end bullish run observed across the Japanese market, with prices of Aniline contracts remained significantly higher due to high Nitrobenzene prices, which Asian suppliers in East Asia decided to stay away from contracts and undertake spot procurements leading to significant downturns and frequent revisions in Nitro benzene and Aniline prices.
In summary, the first quarter of 2024 has been a period of mixed sentiments for Nitrobenzene in the APAC region. Japan has experienced the most significant price changes, with a positive pricing environment overall triumphing the slump observed in the Late February and early March. The market has been influenced by seasonality and other factors, leading to stable pricing trends.
For the Quarter Ending December 2023
North America
Prices of Nitrobenzene showed bearish sentiment in Q4FY23 with respect to nitrobenzene. Feedstock Benzene largely provided negative cost coupled with weak energy prices in the given quarter amidst excellent US domestic crude and gas production. Supply largely remained domestic with substantial imports from Korea and Japan. Construction related demand remained subdued with pending orders piling up although new procurement for Nitrobenzene derived MDI showed uptick largely from commercial construction sector.
Agrochemical demand remained stable, gradually slowing down throughout the quarter largely owing to excellent cropping season. Consumer demand, especially pharmaceuticals, remained strong amidst resilient consumer spending and rising healthcare costs. Inflations Reductions Act driven sustainable energy transition policy in USA drove the polyurethane market to significant extent. Residential Construction chemical markets are showing gradual signs of recovery with improving purchases for Nitrobenzene derivatives, although the effect on prices remained weak.
Automotive and Polymer markets remained other major drivers for nitrobenzene derivatives volume. Japan and Korean markets continued to be the largest suppliers of Nitrobenzene to North American markets Festivities and pent-up demand coupled with previous quarters delivery made the nitrobenzene market strong in the current quarter. By the end of the quarter, prices started stabilizing amidst falling newer orders due to high CIF and CFR charges due to container and shipping shortages largely due to Panama and Suez Crisis.
Asia Pacific
Prices of Nitrobenzene showed bullish sentiment in Q4FY23 with respect to nitrobenzene. Feedstock Benzene largely provided negative cost coupled with weak energy prices in the given quarter amidst excellent US domestic crude and gas production. Supply largely remained domestic with substantial imports from Korea and Japan. Construction related demand remained subdued with pending orders piling up although new procurement for Nitrobenzene derived MDI showed uptick largely from commercial construction sector. Agrochemical demand remained stable, gradually slowing down throughout the quarter largely owing to excellent cropping season. Pharmaceuticals remained strong amidst resilient consumer spending and rising healthcare costs, largely driven by challenges arising from newer lung infection. Demand for heat insulation and refurbishments continue to rise in Korean and Japanese markets amidst government approved schemes to transition into energy efficient complexes. Residential Construction chemical markets are showing gradual signs of recovery with improving purchases for Nitrobenzene derivatives, although the effect on prices remained weak. Automotive and Polymer markets remained other major drivers for nitrobenzene derivatives volume. Japan and Korean markets continued to be the largest suppliers of Nitrobenzene to North American markets Festivities and pent-up demand coupled with previous quarters delivery made the nitrobenzene market strong in the current quarter. By the end of the quarter, prices started stabilizing amidst falling newer orders due to high CIF and CFR charges due to container and shipping shortages largely due to Panama and Suez Crisis.
Europe
Prices of Nitrobenzene showed bearish sentiment in Q4FY23 with respect to nitrobenzene. Feedstock Benzene largely provided negative cost coupled with weak energy prices in the given quarter amidst excellent US domestic crude and gas production. Supply largely remained substantial imports from Korea and Japan. Construction related demand remained subdued with pending orders piling up although new procurement for Nitrobenzene derived MDI showed uptick largely from commercial construction sector. Agrochemical demand remained stable, gradually slowing down throughout the quarter largely owing to excellent cropping season. Consumer demand, especially pharmaceuticals, remained subdued amidst weak consumer spending and rising healthcare costs. EU policy on transition to sustainable energy continues to drive the polyurethane market to significant extent. Residential Construction chemical markets are showing gradual signs of recovery with improving purchases for Nitrobenzene derivatives, although the effect on prices remained weak in Netherlands, Italy and UK. Automotive and Polymer markets remained other major drivers for nitrobenzene derivatives volume. Japan and Korean markets continued to be the largest suppliers of Nitrobenzene to North American markets Festivities and pent-up demand coupled with previous quarters delivery made the nitrobenzene relatively strong in the current quarter despite setbacks from high interest rates. By the end of the quarter, prices started stabilizing amidst falling newer orders due to high CIF and CFR charges due to container and shipping shortages largely due to Panama and Suez Crisis.
For the Quarter Ending September 2023
North America
Prices of Nitrobenzene showed a mixed trend in Q3 FY 2023. Prices observed a strong bearish trend in the month of July followed by a strong recovery in the prices in the consecutive months. July saw a declining trend largely on the account of declining prices of import from Europe as prices continued to deflate as prices of energy deflated. In August, OPEC+ continual extension of production cut triggered rising prices in petrochemical feedstock Benzene. Supply of feedstock largely remained imported one with substantial domestic supply. Orders of Nitrobenzene continued to decline between Portugal and Americas reflected in freight charge drops. Demand for Nitrobenzene especially from plastics showed marked decline from August 2023 as construction sector continued to disappoint. Mortgage rates continue to rise, forcing people to postpone purchases leading to rising inventory of stocks. As downstream polyurethane market continues to remain weak, major destocking of older stocks occurred in the market. Prices continue to hold ground as demand from automotive industries continue to generate necessary chemical margins for manufacturers to supply. Chemical margins continue to worsen throughout the quarter. Demand from other sectors like pharmaceuticals remained stable with limited procurement activities. Q3 FY23 was characterized by destocking and deflating prices.
Asia Pacific
Prices of Nitrobenzene showed a mixed trend in Q3 FY 2023. Prices observed a strong bearish trend in the month of July followed by a strong recovery in the prices in the consecutive months of August and September on the back of a bullish trend in the pricing of feedstocks Benzene and nitration charge. Energy prices also showed a bullish trend due to OPEC+ triggered crude price rise, Europe’s aggressive procurement from Middle Eastern gas market and tight supply of coal. Market participants revealed rising Nitrobenzene prices in the month of August was primarily caused by rising feedstock prices, especially rising demand for sulfuric and nitric acid for increased demand for fertilizer. August saw significant supply disruptions and delayed times due to multiple cyclonic activities, uneventful rainfalls in many places across Asia Pacific. Furthermore, OPEC+ continual extension of production cut triggered rising prices in petrochemical feedstock Benzene. Supply of feedstock largely remained imported with substantial increase in domestic supply. Demand for Nitrobenzene especially from plastics showed improvement from August 2023 as aggressive procurement and price rises by domestic suppliers pulled up the prices. While downstream polyurethane market continues to remain weak, restocking of Nitrobenzene in anticipation of better growth continues to keep the Nitrobenzene market bullish. Demand from other sectors like pharmaceuticals remained stable with limited procurement activities post COVID recovery previous year. Prices of Nitrobenzene spot FOB Shanghai were assessed at USD 1142/MT in the week ending on 29th September 2023.
Europe
Prices of Nitrobenzene showed a mixed trend in Q3 FY 2023. Prices observed a strong bearish trend in the month of July followed by a weak recovery in the prices in the consecutive months. July saw a declining trend largely on the account of declining prices of import from Europe as prices continued to deflate as prices of energy deflated. In August, OPEC+ continual extension of production cut triggered rising prices in petrochemical feedstock Benzene. Supply of feedstock largely remained domestic Demand for Nitrobenzene especially from plastics showed marked decline from August 2023 as construction sector continued to disappoint. Interest rates continue to rise, forcing people to postpone purchases leading to rising inventory of stocks. As downstream polyurethane market continues to remain weak, major destocking of older stocks occurred in the market. Prices continue to hold ground as demand from Renewables transition demand continued to generate necessary chemical margins for manufacturers to supply. Export volumes to US continue to decline of MoM basis with chemical margins continuing to worsen throughout the quarter. Demand from other sectors like pharmaceuticals remained stable with limited procurement activities. Q3 FY23 was characterized by weak and stable
For the Quarter Ending June 2023
North America
In Q2 2023, the US Nitro Benzene market witnessed a mixed demand scenario from downstream industries. The demand remained stable from the downstream Aniline industry, providing some support to the market. Furthermore, consumption from the paints & coatings industry remained dull during the first half of the quarter. However, volumes and consumption rates showed signs of recovery towards the second half on the back of an improvement in the performance of the construction industry. One of the significant factors affecting the market was the weak cost support from upstream Benzene. WTI crude oil prices consistently declined throughout the quarter despite OPEC+ announcements of production cuts. Thus, weak cost support exerted pressure on the Nitro Benzene market from the feedstock. On the logistics side, the freight market experienced a decline throughout the quarter on both the East Coast and West Coast of the US. Trading activities slowing down in the US resulted in eased shipping costs, creating opportunities for cost savings in the Nitro Benzene industry. In June 2023, Nitro Benzene prices in the US were assessed at USD 1550 per MT on an FOB basis.
APAC
In Q2 2023, the Japanese market for Nitrobenzene witnessed a bearish trend, with prices declining due to weak demand sentiment and stagnant feedstock sentiments in the Asian region. The decreasing demand from Chinese and other Asian Pacific countries had a negative impact on the market sentiments of Nitrobenzene. Additionally, the Japanese automotive industry also experienced a fall in demand for the product. The market value was further depleted with a decrease in the downstream demand from the Aniline industry in the region. The market situation remained bearish, with moderate supply and limited changes in demand dynamics from downstream industries. The cost pressure from feedstock Benzene and weak demand pattern from the downstream industries contributed to the declining prices. However, procurements were expected to strengthen in early Q3 2023, and there were optimistic expectations regarding feedstock prices improving in the upcoming months. After the conclusion of Q2 2023, Nitro Benzene prices in Japan were assessed at USD 1235 per MT on a FOB basis.
Europe
In Q2 2023, the European Nitro Benzene market experienced mixed demand dynamics from downstream industries. The demand remained stable from the downstream Aniline industry, providing some support to the market. However, consumption from the paints & coatings industry remained dull due to the underwhelming performance of the construction industry. LANXESS, in its Q2 report, highlighted that high inflation rates, declining demand, and weak cost support from upstream Benzene contributed to the lackluster performance of the market. One of the significant factors impacting the market was the consistent decline in Brent crude oil prices throughout the quarter, despite OPEC announcements of production cuts. Thus, weak cost support from upstream Benzene kept the overall market sentiment bearish. On the logistics front, the freight market declined steadily throughout the quarter as trading activities slowed down in Europe. This resulted in a decrease in shipping costs and an abundance of cheaper imports from the Asian market, adding to the competition faced by European producers. After Q2 2023 ended, Nitro Benzene prices in Europe were assessed at USD 1450 per MT on an FD basis.
For the Quarter Ending March 2023
North America
The prices of Nitro Benzene escalated in the North American region during the first quarter of 2023. The upstream Sulphuric Acid and Nitric Acid price has consolidated at an elevated level recently. The situation in the downstream market is good, the downstream enthusiasm for purchasing Benzene is improving, and the production trend is up due to the contradiction between supply and demand. The cost of producing Nitrobenzene has not changed significantly, and consistent energy prices maintained the market value of the products. The steady availability of raw materials, Benzene, also impacted the prices of bulk chemicals in the regional market. The procurement of Nitrobenzene for the manufacturing of pesticides with economic stability and invariable consumption from the downstream sector kept the demand for the product stable.
Asia
In the Chinese market, the price of Nitro Benzene increased, with costs reaching USD 1184/ton FOB Shanghai during the first quarter of 2023. Despite this, the logistics sector had grown, and shipping costs to and from China to the American and European markets had increased. The purchase of Nitrobenzene to produce fertilizers increased, and the product's declining inventory level had an impact on market sentiment. Pressure is increasing on workers in the manufacturing and logistics supply chain, particularly those operating production lines and truck drivers, due to the unprecedented demand for Nitrobenzene.
Europe
The market value of Nitro Benzene elevated in the European market with a rise in the feedstock Benzene cost during the first quarter of 2023. The price of the product was impacted by changes in the costs of other inputs needed to produce Nitrobenzene, such as labor costs. Due to manufacturing halts and increasing freight costs in the local market, the supply of Nitrobenzene in Germany was reduced, which resulted in higher prices as buyers' competition rose. Due to the expansion of businesses like fertilizer, petrochemicals, and metal processing, there was an increase in demand for petrochemicals in Germany. As a result, prices for Sulphuric Acid rose in the regional market.
For the Quarter Ending December 2022
North America
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.
APAC
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.
Europe
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
North America
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.
Asia- Pacific
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.
Europe
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.
For the Quarter Ending June 2022
North America
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.
APAC
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.
Europe
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.
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
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.
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.
