For the Quarter Ending June 2024
North America
The North American Nitro toluene 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 Nitro toluene 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 like isocyanates which observed price reduction due to higher conversion of nitro toluene into TDI, pharmaceuticals and agrochemical 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 Nitro toluene 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 Nitro toluene 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.
Asia Pacific
In Q2 2024, Nitro Toluene prices in the APAC region experienced a notable decline, driven primarily by an oversupplied market and subdued demand across various sectors. Factors such as increased production, inventory build-up, and sluggish downstream demand in the agrochemical, pharmaceutical, and Toluene diisocyanate (TDI) markets significantly influenced the pricing environment. Additionally, global economic uncertainties, logistical challenges, and fluctuating feedstock prices contributed to the downward pressure on Nitro Toluene prices. Japan, in particular, witnessed the most significant price changes, with Ortho Nitro Toluene prices showing a steep decline. The overall trend in Japan was marked by a bearish market sentiment, exacerbated by high inventory levels and lower-than-expected demand from key sectors such as automotive and construction. Seasonality played a role as well, with reduced activity during the summer months further dampening demand. The correlation in price changes was evident, with year-to-date price fall recorded around 25% for the H1 assessed price. The price comparison revealed that the decline was more prominent in the second half of the quarter. The quarter-ending price for Ortho Nitro Toluene in Japan was USD 1870/MT - CFR Tokyo, underscoring the negative pricing environment. Despite the bearish sentiment, the market remained cautiously optimistic about potential stabilization in the coming quarters, as supply-demand dynamics adjust to the new market realities. Overall, Q2 2024 was characterized by a challenging pricing environment for Nitro Toluene, predominantly driven by oversupply and weak demand.
Europe
The European Nitro toluene 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 Nitro toluene prices. However, this trend was countered by a concurrent rise in sulfuric acid costs, primarily driven by geopolitical tensions. Further complicating the market dynamics were supply constraints stemming from production facility shutdowns. Geopolitical uncertainties and the anticipation of extended warm season exacerbated these supply chain disruptions, leading to intensified cost pressures. Additionally, downstream industries like isocyanates which observed price reduction due to higher conversion of nitro toluene into TDI towards, pharmaceuticals and agrochemical producers, engaged in significant forward buying and inventory accumulation led to overproduction and supply easing prices at the faster pace by the latter half of the quarter in response to elevated crude and natural gas prices, further impacting market dynamics. 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 pharmaceuticals and de-coupling from Chinese imports contributed to this demand surge. Secondly, strategic stockpiling activities by market participants further fueled the upward price movement. In conclusion, the dominant sentiment surrounding Nitro toluene 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
In the first quarter of FY24-25, Ortho-Nitro Toluene prices in North American dropped significantly due to impending bans on S-Metolachlor, a weedkiller that uses ortho-Nitro Toluene as a raw material. Data of USA, shows a steep decline in prices starting from January. This coincided with a 5% increase in Toluene supply contracts compared to the previous quarter. Spot prices for benzene also recovered in February as industrial production picked up with rising temperatures.
North American relies heavily on imports for Ortho-Nitro Toluene, with India and China being the main suppliers. The decline in the herbicide usage led to a plunge in new orders for ortho-Nitro Toluene, resulting in excess inventory. Additionally, new energy supply contracts starting in January offered lower premiums due to relatively low gas prices and high gas inventories.
Despite the overall bearish trend, there are some signs of recovery. Demand for ortho-Nitro Toluene in North American dye production is increasing as energy costs ease. US saw an improvement in Toluene supply in the first half of the quarter but tightening in the second half, but domestic demand within US remained stable. Overall, Ortho-Nitro Toluene prices continued to decline after a weak fourth quarter in FY23-24. This was driven by inventory adjustments, subdued consumption due to high interest rates, and discounted markets in USA and Mexico. However, demand for dyes and other chemicals that use ortho-Nitro Toluene remains lower than historical averages, and new orders have fallen considerably.
Europe
Prices of Ortho-Nitro Toluene in Europe turned bearish in the first quarter of FY24-25 owing to further bans on Metolachlor approaching. Pricing insights and data from Germany reveals significant decline in prices were observed from January as Toluene supply contracts turn higher by at least 8% Q-o-Q basis with spot prices recovering after downturns in the industrial production eased by February as temperatures rose.
Supply of Ortho-Nitro Toluene largely remain imported into European markets with China being the major supplier. Downturns in agrochemical production intensified with newer orders for Nitro Toluene in Europe plunged primarily due to lower demand of agrochemicals. Newer contracts for energy supply beginning January 2024 showed 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. Nitro Toluene demand for dyes and other dyestuff production in Europe is showing recovery with easing energy cost, imports of Toluene from Netherlands and Belgium improved in Germany, though German domestic demand remained subdued.
Overall, Prices showed continued subduction after weak Q4FY23-24, inventory adjustments and subdued consumption due to higher interest rates. With England leading a strong discounted market for consumption, TDI prices remained stable indicating soft polyurethane demand is getting momentum across Europe, especially from refurbishment and furniture markets.
Asia Pacific
The first quarter of 2024 has been bullish for Nitro Toluene pricing in the APAC region. Market prices have seen a significant decline, with a 14% drop compared to the same quarter last year, and by the end of the quarter, price stabilized. 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 bearish sentiment offset the February slump in prices. Compared to the YoY basis, prices remained 10% lower due to significant deflation in agrochemical markets.
The latest quarter-ending price for ortho-Nitro Toluene in China was recorded at USD 2160/MT FOB Qingdao. This price indicates a stabilization in price movements with the arrest of price decline, as Toluene supply turned costlier by the quarter end, and a bearish run observed across the Chinese market, with prices of Toluene contracts remained reaching the spot pricing levels as the quarter end stocking approached, while demand for Nitro Toluene remained subdued due relative to previous fiscal levels
In summary, the first quarter of 2024 has been a period of bearish sentiments for ortho-Nitro Toluene in the APAC region. Japan has experienced the most significant price changes, with a negative 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 Nitrotoluene showed bearish sentiment in Q4FY23 with respect to ortho-nitrotoluene. Feedstock Toluene largely provided negative cost coupled with weak energy prices in the given quarter amidst excellent US domestic crude and gas production. Supply largely remained import dominated with substantial domestic volumes. Construction related demand remained subdued with pending orders piling up although new procurement for Nitrotoluene derived TDI showed uptick largely from commercial construction sector.
Agrochemical demand remained stable, gradually slowing down throughout the quarter largely owing to excellent cropping season. Dyes market showed uptick amidst improving consumer sentiments as wages rise and falling mortgage rates fueling the resilient consumer spending. 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 Nitrotoluene 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 Nitrotoluene showed bearish sentiment in Q4FY23 with respect to ortho-nitrotoluene. Feedstock Toluene largely provided negative cost coupled with weak energy prices in the given quarter amidst excellent US domestic crude and gas production. Supply largely remained import dominated with substantial domestic volumes. Construction related demand remained subdued with pending orders piling up although new procurement for Nitrotoluene derived TDI showed uptick largely from commercial construction sector. Agrochemical demand remained strong, gradually slowing down throughout the quarter largely owing to excellent cropping season. Dyes market remained subdued, especially hair dyes and other polyester dyes, amidst oversupply and lower end use demand. Residential Construction chemical markets are showing gradual signs of recovery with improving purchases for Nitrotoluene derivatives in Italy, France, Netherlands as prices have begun to recover after falling for three consecutive quarters, although the effect on prices of Nitro toluene remained weak due to oversupply. Automotive and Polymer markets remained other major drivers for nitrotoluene derivatives volume. Japan and Korean markets continued to be the largest suppliers of Nitrotoluene to European markets Festivities and pent-up demand coupled with previous quarters delivery made the nitrotoluene 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.
For the Quarter Ending September 2023
North America
Prices of Nitrotoluene 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 stable price trend as demand for dyes and rubber chemicals continued. In August, OPEC+ continual extension of production cut triggered rising prices in petrochemical feedstock Toluene. Supply of Nitrotoluene largely remained domestic with minor imports. Orders of Nitrotoluene remained weak. Demand for Nitrotoluene especially from polyurethane 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 leading to downstream polyurethane market 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 fluctuated throughout the quarter. Demand for dyes also showed improvement gradually increment procurement activities of textiles and plastic goods. Q3 FY23 was characterized by weak recovery and inflating prices.
Asia Pacific
Prices of Nitrotoluene showed a bullish trend in Q3 FY 2023 on the back of a bullish trend in the pricing of feedstocks Toluene 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 Nitrotoluene 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 Toluene. Supply of feedstock largely remained imported with substantial increase in domestic supply. Demand for Nitrotoluene especially from plastics showed improvement from August 2023 as aggressive procurement and price rises by domestic suppliers pulled up the prices as stimulus announcements were made. Downstream polyurethane market continues to remain weak, restocking of Nitrotoluene in anticipation of better growth continues to keep the Nitrotoluene market bullish. Demand from other sectors like textile for dyes gradually improved as economic stimulus by the government showed increased sales volume of textiles despite rising prices. Prices of ortho-Nitrotoluene spot FOB Qingdao were assessed at USD 1940/MT in the week ending on 29th September 2023.
Europe
Prices of Nitrotoluene 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 Toluene. Supply of feedstock largely remained domestic Demand for Nitrotoluene 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 remain firm as marginal demand from automotive and renewable energy sector. Q3 FY23 was characterized by weak and stable prices
For the Quarter Ending June 2023
North America
In the second quarter of 2023, the demand for US Nitro Toluene experienced a mixed trend. While the downstream solvent industry showed stable demand throughout the quarter, the consumption from the dyes and explosives industry remained dull during the first half. However, there was a notable recovery in volumes and consumption rates towards the second half of the quarter. This recovery was attributed to the improvement in the performance of the construction industry, which likely drove increased demand for Nitro Toluene in related applications. One of the challenges faced by the US Nitro Toluene market during this period was weak cost support from upstream Toluene. Despite announcements of production cuts by OPEC+, WTI crude oil prices consistently declined in the second quarter. This decline in oil prices might have impacted the cost structure of Toluene, affecting the overall profitability and pricing dynamics of US Nitro Toluene. Moreover, the freight market experienced a decline throughout the quarter on both coasts, East Coast and West Coast. Slowed trading activities in the US resulted in ease in shipping costs, which could have influenced the supply chain dynamics for Nitro Toluene. In June 2023, Nitro Toluene prices in Europe were assessed at USD 2555 per MT on an FD basis.
APAC
In Q2 2023, the Japanese Nitro Toluene market experienced a bearish trend, with prices declining sharply for Para Nitro Toluene while showing relatively less decrement for Ortho Nitro Toluene. Market participants reported ample availability of Para Nitro Toluene, but there was a constrained supply of Ortho Nitro Toluene. However, the demand from downstream industries remained limited, leading to bearish price trends. One of the key factors affecting the market was the weak cost support from upstream Toluene. Toluene prices continued to dip further into the quarter due to soft cost support from the upstream Crude oil market. This decline in feedstock prices put pressure on Nitro Toluene prices in the Japanese market. Additionally, the freight market witnessed a decline throughout the quarter on all key Asian routes. As trading activities slowed down globally, shipping costs eased, which impacted the logistics aspect of the Nitro Toluene market. After the conclusion of Q2 2023, Nitro Toluene prices in Japan were assessed at USD 1432 per MT on a FOB basis for the para grade.
Europe
In the second quarter of 2023, the demand for European Nitro Toluene remained stable from the downstream solvent industry. However, there was a noticeable decline in consumption from the dyes and explosives industry. This downturn was attributed to the underwhelming performance of the construction and mining sectors, as reported by LANXESS in its quarterly report. Several factors contributed to this sluggish performance. First, the construction and mining industries were adversely affected by the high inflation rates, which put pressure on their operations and profitability. Additionally, declining demand in the market further exacerbated the situation, making it challenging for these industries to sustain their previous levels of consumption. Moreover, the weak cost support from upstream Toluene added to the woes of the Nitro Toluene market. Brent crude oil prices consistently declined during the second quarter, despite announcements of production cuts by OPEC+. Furthermore, the freight market also faced challenges during the quarter, primarily due to slowed trading activities in Europe. As a result, shipping costs eased, and there was ample availability of cheaper imports from the Asian market. This shift in the freight market dynamics might have influenced the competitive landscape for European Nitro Toluene, affecting its trade and market share. After Q2 2023 ended, Nitro Toluene prices in the US were assessed at USD 2570 per MT on a FOB basis.
For the Quarter Ending March 2023
North America
The prices of Nitro Toluene escalated in the North American market during the first quarter of 2023. The fluctuating upstream crude prices influenced the feedstock Toluene, further inflating the Nitro Toluene values. The demand for Nitro Toluene from the downstream pigments, agricultural chemicals, and antioxidants manufacturers rose, boosting the Nitro Toluene values in India. Additionally, the rising requirement from the end-use automotive, construction, and agrochemical sectors is resulting in the escalating price trend of Nitro Toluene. The bullwhip effect was brought on by sudden increases in consumer demand and led to greater orders being placed higher up the supply chain to avoid stockouts.
Asia
The market value of Nitro Toluene was depleted in the Asian market during the first quarter of 2023. The weak demand from downstream drugs, pesticides, and dyes kept the commodity's inventory level at the merchants high. The region's stockpiles of raw material Toluene also remained high. The elastomer demand was depleted, and there was an increase in the inventories of the product due to lower consumption in the region. The sales generated by the petrochemical (Nitro Toluene) manufacturing industry in the region were low, and the falling freight charges relieved the cost pressure from the price of the product.
Europe
Nitro Toluene prices depleted in the European market during Q1,2023. Although the dyes, pharmaceuticals, and herbicides industry saw a plummet in sales and a fall in exporting of products impacted the market value of Nitro Toluene. Fewer sales have been generated by the industry, and investors are pessimistic about product growth in the coming weeks. The earnings for the companies are depreciating, impacted by the energy industry, and there is a fall expected in the coming months by the Nitro Toluene manufacturing companies. With a change in the logistical circumstances, the inventory level in the German market also remained mild.
For the Quarter Ending December 2022
North America
The North American market for Nitro Toluene got off to a great start in the fourth quarter of 2022; the prices showed a notable increase till November before they started declining during the rest of the quarter. Due to variations in downstream demand from numerous industries, the market prices of Nitro Toluene showcased mixed sentiments. The domestic market's demand for Nitro Toluene from the azo dye and antioxidant industries fluctuated because of their uneven growth throughout the quarter. Nitro Toluene industry growth was also impacted by fluctuating upstream costs and variable production costs as the prices of raw material Toluene were unsteady during the quarter.
APAC
Replicating the market trend of Nitro Toluene in North America, the Asia-Pacific Nitro Toluene market also witnessed a great start during the fourth quarter of 2022; its prices climbed considerably up until November before starting to fall as the quarter approached its end. Amidst variations in downstream demand from numerous industries, the market value of Nitro Toluene showed contradicting sentiments. The domestic market's demand for Nitro Toluene fluctuated due to the quarter's unequal growth pattern of downstream azo dye and antioxidant industries. Variable production costs and fluctuating upstream expenses also impacted the expansion of the Nitro Toluene market during the quarter. Hence, the assessed price of Nitro Toluene was USD 3010/MT FOB Shanghai in China during December.
Europe
Like North America and APAC region, the fourth quarter of 2022 witnessed a strong start for the European market for Nitro Toluene. The prices increased noticeably up until November 2022 before beginning to decline for the remainder of the quarter. The market value of Nitro Toluene displayed mixed sentiments because of differences in downstream demand from many industries. Due to their unequal growth during the quarter, the azo dye and antioxidant sectors' demand for Nitro Toluene in the domestic market fluctuated. Furthermore, variable production costs and varying upstream expenses also had an impact on the growth of the nitro-toluene market.
For the Quarter Ending September 2022
North America
Due to shifting market dynamics every month, the North American market had mixed sentiments for Nitro Toluene during Q3 2022. According to market sources, domestic demand remained moderate to stable while fluctuating import prices changed the market's overall dynamics. The USA's agrochemical and dyes and pigments industries had a lacklustre quarter. The looming risk of a recession, meanwhile, continued to restrain overall market action. Additionally, it was noted that increasing domestic freight costs as a result of rising gasoline and diesel prices forced merchants to adjust their offers in order to retain profitability during this final month of the quarter. However, decreased international freight costs offset the overall pricing trends for the goods in the US market.
Asia
As a result of slowing domestic downstream sector demand and abundant product availability in Japan, the price of Nitro Toluene for the Japanese market significantly dropped during the first half of the quarter. Following this fall, prices for Ortho Nitro Toluene and Para Nitro Toluene respectively skyrocketed again during the final month of the quarter, reaching USD 2277/MT and USD 2451/MT. However, on the other side, prices for Ortho Nitro Toluene and Para Nitro Toluene continued to decline in China and South Korea throughout the quarter and only a marginal price hike was witnessed by the month of September 2022.
Europe
Mixed market sentiments were hosted into the European market during this quarter due to rising input costs and fluctuating offtakes. According to sources in the market, the product's fundamental demand started to drop during the second half of the quarter after barely being stable for months. Additionally, cheaper imports significantly contributed to the tapering of commodity prices in the European market in the interim. However, the Rhine River's disruption of trade activity and the price increase of gasoline were offset by falling international freight rates. Furthermore, the prospect of a high natural gas price seemed to have disappeared as the government made every effort to stock the nation with enough gas.
For the Quarter Ending June 2022
North America
Strong export demand and rising upstream crude oil prices and feedstock toluene on the worldwide market have been driving up Nitro Toluene prices throughout the second quarter of 2022. The lack of upstream crude oil supplies has also contributed to the price increase for Nitro Toluene. Variables including firm demand, lower-than-expected supplies, and lingering geopolitical tensions between Russia and Ukraine affected the value of all crude derivative commodities. In addition, this quarter saw a continuous high need for Nitro Toluene in the downstream paint and rubber industries. Besides, the export charges were at a peak resulting in the increasing price trend of Nitro Toluene.
APAC
During the second quarter of 2022, the Asia Pacific region experienced a contradictory market attitude toward Nitro Toluene. Nitro Toluene prices decreased in China during May due to an ample supply and weak demand from the construction and downstream cosmetics industries. Additionally, the drop in upstream crude value has substantially impacted the price of raw materials, notably Toluene, which has decreased the price of Nitro Toluene in the regional market. Additionally, the ongoing COVID restrictions in some Chinese cities have affected Nitro Toluene's market sentiment. However, as downstream output has rebounded, Nitro Toluene prices have risen since the end of the quarter. The regional market's significant buying and selling activity has also improved Nitro Toluene's pricing. The increase in transportation freight costs spurred on by the rise in fuel prices increased the market for Nitro Toluene.
Europe
Nitro Toluene prices increased during the second quarter of 2022 in the European market, driven by a rise in local market demand. The substantial demand for ink, paint, and glue also created the groundwork for the price increase. The scarcity of upstream crude supply also contributed to the price hike. Additionally, the need for sanctions against Russia's oil embargo and the escalation in energy prices spurred on by geopolitical upheaval have boosted the price of Nitro Toluene. Due to high domestic demand and rising output, the Nitro Toluene market has grown even more. Also, the limited product availability and increasing consumer purchases further triggered the Nitro Toluene market.
For the Quarter Ending March 2022
North America
Nitro Toluene prices in the USA showcased an upward trajectory during the first quarter of 2022. Rise in upstream crude values influenced the raw materials Toluene, Nitric Acid, and Sulphuric Acid, which resulted in the positive support of Nitro Toluene values. US sanctions on Russia’s s crude oil import in the aftermath of the Russia-Ukraine conflict had a severe effect on the prices of Nitrotoluene. Skyrocketing freight charges due to the rise in fuel prices was another factor for the price hike. As a result, the price of Nitrotoluene in the USA settled approximately at USD 2573 per MT in March.
Asia Pacific
During the first quarter of 2022, Nitro Toluene prices rose in India owing to the high demand from the domestic market. Limited supply from China due to the rising COVID cases prompted buyers to seek supply from other countries, resulting in the price rise of Nitro Toluene in India. Furthermore, the soaring freight charges and container shortage have added fuel to the scenario. Escalated tension between Russia and Ukraine due to the conflict led to a steep rise in the upstream crude and feedstock Toluene values which further inflicted the Nitro Toluene market trend. Thus, prices of Nitro Toluene in India were assessed to be approximately USD 2605 per MT Ex- Vadodara in March.
Europe
In the first quarter of 2022, Nitro Toluene prices rose upward as the feedstock Toluene prices increased in Q1. Taking pressure from global crude oil values in the aftermath of the Russia-Ukraine war made significant players battle with the price revisions to protect their profit margin. However, reduced supply during the COVID resurgence in Germany has also resulted in the uptrend in the Nitro Toluene prices. Soaring demand from the regional and international market further showed positive support for the Nitro Toluene values. As a result, prices of Nitro Toluene in Germany approximately settled at USD 2905 per MT in March.
