For the Quarter Ending March 2023
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.
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.
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
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.
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.
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
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.
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.
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
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.
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.
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.
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.
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.
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.