For the Quarter Ending June 2021
Nitro Toluene supply outlook in North American region observed some eases as the production activities restored in the US and the infrastructure recovered from the severe impact of winter storm Uri. Overseas enquiries bolstered specially from the European region, which further pushed the market outlook upwards. Nitro Toluene demand surged in the region as offtakes from the agrochemicals and dyes industries surged to cope up with the surging enquiries. Firming Benzene maintained the upwards pressure over the producer’s margins while the firm demand outlook kept the producer’s margins well supported throughout Q2.
During the second quarter of 2021, Nitro Toluene supplies in the Asia Pacific region were largely under the pressure of raw material shortage. The Chinese government imposed consumption taxes on imported heavy aromatics commodities in June, further adding to the inflationary raw material rates. The production levels remained high, and plants were operating at around 90% of the capacity in June due to high demand. The Indian inventory levels were less with suppliers largely impacted because of renewed restrictions on the Asian ports and soaring freight. Shortage of Nitric Acid further escalated the pricing trend in Asia. FOB Shanghai Nitro Toluene discussion were assessed at USD 1450 per tonne in June. Demand surged in the second half of the quarter due to seasonal offtakes from the agrochemicals sector.
The European Nitro Toluene market reported better supplies owing to increased imports from the USA and Asia.
Turnaround at a major feedstock facility ended up in the ending creating extended Nitric Acid shortage. The prices were on uptrend under a combined influence of the global inflation in the prices of Benzene, which kept the Nitro Toluene offers raised for a larger part of Q2. Demand surged from the downstream agrochemicals with seasonal push and for manufacturing Nitro Toluene derivatives.
For the Quarter Ending March 2021
The supplies of Nitro Toluene were ample during the first quarter of 2021, as the addition of new crackers in China increased the productional availability of upstream feedstock. However, diversion of feedstock towards the western regions for better revenue output put some constrains in the southeast Asian regional supplies. The demand in APAC region remained stable, owned by the constant consumption from downstream sector.
Prices showed mixed results as it took an uptrend in starting of the quarter and slumped by the quarter ending in India, the quarterly average is USD 1599/ton.
During the Q1 of 2020, the supplies were balanced in the European region, as the consumption decline in region due to the imposition of lockdown, commercial and industrial activities were operating at low pace amid the severe cold in the northwest Europe. The demand remained healthy as the offtake from the downstream sectors were improved. The declined imports from the US, attracted the Asian players to the European region.
For the Quarter Ending December 2020
Moving into the fourth quarter, the demand for Nitro-Toluene in the Asian market regained strength amid revival in the downstream sectors. Consistent increment in the price of upstream crude has provided the requisite support to the regional price curve. In accordance with the positive upstream market outlook, the plant operating efficiencies in the Indian markets were raised to more than 90% amidst expectations of steady improvement in financial performance. Supply remained largely impacted in December because of the restrictions in terms of the port movement due to global container shortage. Price of Nitrotoluene in India was increased from USD 1700 per MT in November to USD 1796 per MT in December.
Inconsistent demand for Nitro-Toluene from the agriculture, rubber and dye manufacturing weakened its intense market outlooks in Europe early in the quarter. It has been analyzed that Europe increased its imports of the key petrochemical products as several downstream ramped up their production rates, to push forward the growth in the regional market. In early December, the availability of Nitro-Toluene in the region was affected due to rising inconvenience on the raw material supply due to tightening of shipping containers on the global scale.
With the uniform growth in the prices of crude oil, Nitro-Toluene prices in the US took an uptrend later in the quarter. Prices surged to fresh hikes in December since demand remained robust for utilization in intermediates and pharma products. In some regions of the US, many petrochemical plants shut down due to power outages caused by Hurricane Laura around early September which were heard restoring production by mid-October. Rising Petrochemical margins are further projected to boost the price trend in the region at least till Q1 2021. Due to soaring demand several American companies were heard diversifying their source from China to India.