For the Quarter Ending March 2022
During the first quarter of 2022, the Nitro Chloro Benzene market showcased marginal upward trajectory movement. Rising upstream crude prices and feedstock benzene, nitric acid, and sulphuric acid prices simultaneously caused the Nitro Chloro Benzene prices to hike. Rise in demand for the downstream agrochemicals, paints, and dyes maintained sustainable offtakes for Nitro Chloro Benzene in Q1. In addition, rise in freight charges prompted manufacturers to revise the prices so that their profit margins are not affected. Moreover, the tension between Russia and Ukraine added fuel by rerouting the shipments which resulted in the delay in supply of the products.
Nitro Chloro Benzene prices witnessed mixed sentiment during the first quarter of 2022. The prices showed a downfall from January due to improved inventory levels after the new year break. Prices dropped by around 0.9% in February. Later, prices increased in lieu of tension between Russia and Ukraine which significantly impacted feedstock Benzene prices, influencing complete Nitro Chloro Benzene market. The demand for Nitro Chloro Benzene from regional and international markets rose as it is majorly utilized in the agrochemical industry. Moreover, soaring fuel prices affected the freight charges, resulting in price hikes. As a result, Nitro Chloro Benzene prices in India settled at USD 2516 per MT Ex-Mumbai in March.
In the first quarter of 2022, Nitro Chloro Benzene market observed an uptrend in Europe. COVID resurgence and transport restrictions in Germany during early Q1 caused the prices to rise. The price rise was owed to the surge in upstream crude and feedstock benzene prices due to the escalated tension in the Russia-Ukraine war. The rise in crude values influenced fuel prices, further affecting the freight charges. The conflict between Russia and Ukraine affected the trade activities, causing a delay in the supply of products.
For the Quarter Ending December 2021
In North America, Nitro Chlorobenzene prices witnessed an upward trend during the fourth quarter of 2021. Firm upstream Benzene prices and sturdy demand from the downstream manufacturers including dyes, drugs, and agrochemicals had kept the pricing trend optimistic in this quarter. Moreover, exorbitant freight charges and increasing prices of the product in China also contributed to the price rises in the US market as US imports a significant amount of its total imported NCB from China. However, NCB prices eased in November followed by sufficient supplies and relaxation in feedstock Benzene values. In December NCB values again rose significantly backed by improvement in the offtakes by the local buyers. In addition, the cost support from the upstream Benzene soared as well as strengthened the will of producers to raise the quotations for Nitro-Chloro-Benzene in the last month of the quarter.
In Q4 2021, dented supply chains continued to weigh over the Asian NCB market thus the producers had kept their offers raised throughout the quarter. In China, unprecedented power crisis due to coal shortage, surging raw material cost and robust demand from the downstream manufacturers resulted in a persistent rise in NCB prices. Thus, Para Nitro Chlorobenzene FOB Qingdao prices were assessed at USD 2960 per MT in December observing a hike of USD 360/MT since October. In India, the NCB market showcased mixed sentiments in the fourth quarter of the year. Nitro Chlorobenzene prices witnessed fluctuations depending upon demand-supply dynamics coupled with the upstream Benzene values. NCB prices surged significantly from October to November due to firm offtakes from the domestic as well as international markets. Hinderance in the production activities in China because of the energy crisis coupled with a shortage of feedstock Benzene had shifted the demand for NCB to Indian manufacturers that aided the pricing trend of NCB in India. However, in December, NCB prices eased in the Indian market due to lull trade activities and lower buying momentum because of year end.
Hence, Ex-Mumbai Para-Nitro Chlorobenzene prices dropped to USD 2609 per MT from USD 2688.05/MT in the timeframe of November to December.
In the fourth quarter of 2021, Nitro Chlorobenzene market sentiments appeared to be bullish backed by robust demand from downstream pharmaceutical and Agrochemical sectors and tight supplies that led to the inflation in NCB prices across the European market. In addition, the domestic and overseas inquiries for NCB also soared in this timeframe as the downstream and other traders were persistently procuring the product under the threat of possible lockdowns amid a rising number of coronavirus cases in the region. Moreover, fluctuations in crude oil discussions had translated into the pricing trend of NCB in the region. Hence, Nitro Chlorobenzene prices had observed an uptrend in Q4.
For the Quarter Ending September 2021
Nitro Chlorobenzene market outlook showcased a marginal hike during the third quarter in the North America. In the mid quarter, arrival of Ida hurricane in the Gulf Coast of the USA led to the closure of several production facilities, and oil and gas refineries which resulted into the scarcity of the feedstock thus, escalated the values of Nitro Chlorobenzene in this timeframe. Hurricane Ida also disrupted the supply chains that also impacted the imports from the Asian countries. However, the demand from downstream industries including Dyes, Rubber, Agrochemicals and Pharmaceuticals remained firm throughout the quarter which also aided its pricing trend.
In Q3 2021, a consistent rise in the pricing trend of Nitro Chlorobenzene was witnessed in the Asian markets. In Chinese market, the production and supply chains remained dented that kept the NCB offers high in this quarter. Some of major factors involved were curtailment in the production levels on the back of energy crisis as well as the congestion on several ports in China that caused supply chain disruption. Para-Nitro Chlorobenzene FOB Qingdao (China) monthly average price stood at 2319/MT in September, observing a hike of USD 127/MT since July. In India, NCB prices encountered a steep climb backed by the high demand from various end use industries coupled with the upsurge in the feedstock Chlorobenzene prices. Furthermore, exorbitant freight charges and delayed cargoes also supported the pricing trend of Nitro Chlorobenzene in India. Ex-Mumbai Para-Nitro Chlorobenzene prices settled at USD 2415 in September showcased a significant rise in this quarter.
In Europe, Nitro Chlorobenzene market witnessed an upward rally during the third quarter owing to the firm demand from the downstream manufacturers. Moreover, spike in the feedstock values in effect of the volatility in prices of crude oil directly influenced the prices of NCB during this quarter. Moreover, halted imports owing to the supply chain disruption as a result of various factors including impact of Ida hurricane, congestion on several ports of China and limited availability of shipping containers. In addition, expensive production cost due to upsurge in the energy cost also sent ripples to the values of Nitro Chlorobenzene in third quarter 2021.