For the Quarter Ending June 2022
During the second quarter of 2022, the North American market for Phosphorus Pentachloride observed a sturdy upward trajectory in the market sentiments and prices amidst the consistent cost support from the feedstock Yellow Phosphorus. This development is attributed to Russia's retaliatory measures to reduce the export of fertilizers against the sanctions imposed by the US and the UK with several other nations' help. In response, the demand exceeded the supply outlook, creating a global fertilizer shortage. The US is also witnessing a food crisis as the global food index soared to a historic high at the beginning of the second quarter, followed by the supply-demand gap in the domestic market. As a ripple effect, the prices of Phosphorus Pentachloride remain sturdy in the US domestic market.
The Phosphorus Pentachloride sentiments in the Chinese domestic market observe a perpetual easiness in the overall market dynamics. The resumption of the public and market movement paced up significantly. Despite the hovering uncertainties of another COVID shutdown, the market participants were active from the regional and overseas markets. In addition, the strengthening wait-and-see sentiments for the upstream Yellow Phosphorus did not provide adequate cost support, followed by the staggering demand from the downstream industries in the domestic market. Although, the concerns regarding the availability of fertilizers in the domestic market coupled with the government restriction on utilizing the fertilizer's essential raw materials at optimum levels led to increased cost support from the upstream Phosphorus Pentachloride In the Indian domestic market.
In the second quarter of 2022, the Phosphorus Pentachloride market in the European region remained bullish. This development is majorly attributed to the retaliatory measures by Russian authorities against the western sanctions imposed by the US and the UK with the support of several other nations. The Russian authorities decided to restrict the exports of the essential fertilizers ahead of the upcoming peak season in Europe, causing a sudden surge in demand for Phosphorus Pentachloride. The COVID restrictions in China hindered the imports of Phosphorus Pentachloride due to the port congestion.
For the Quarter Ending March 2022
The Phosphorus Pentachloride market in the North American region observed a persistent gain in the first quarter of 2022. The arbitrage struggled in the first half of the quarter. The Chinese market remained closed during the Lunar New Year holidays, followed by the restricted operational rates due to Winter Olympics and the seasonal peak for Yellow Phosphorus from the fertilizers industry. The conflict in the eastern European region drove the food crisis in the US amidst the all-time high food pricing index. In response, it supported the demand outlook from the fertilizers and EV batteries industry. It strengthens the producer's will to raise the offered quotations for Phosphorus Pentachloride in the US domestic market.
In the first quarter of 2022, the Phosphorus Pentachloride market in the Asia Pacific region observed a significant mixed trend in the offers. This development is attributed to the consistently fluctuating and different pricing trends for Phosphorus Pentachloride throughout the region. In January, the sentiments for Phosphorus Pentachloride witnessed substantial gains ahead of the Lunar New Year holidays. In addition, a large portion of the upstream has diverted towards the fertilizers industries to cope with the seasonal hype from the downstream Agricultural sector, which is further coupled with the speculation in the spot market about the resumption in exports of Phosphate based fertilizers. The spot transactions flourished gradually as the market participants actively procured adequate volumes as the domestic carriers and loaders of commodities and goods stopped responding to the new inquiries on 20th January. Therefore, the FOB Qingdao discussion for Phosphorus Pentachloride was settled at USD 5700 per tonne in March 2022.
During the first quarter of 2022, the Phosphorus Pentachloride market in the eastern European region was a central impacted region. The European market is already facing the prevailing energy crisis, and the operational rates were limited as a significant portion of the natural gas was diverted towards heating purposes. In contrast, the imports from the APAC region were impacted after the Suez authorities increased the rates by 5% amidst the conflict in the eastern European region. During the same period, the market players from the EV sector were actively enquiring about Phosphorus Pentachloride from the domestic and overseas markets. In addition, several European players were reluctant to procure the Russian cargoes at the black sea, that further added the pressure on the supply outlook against the rising inquiries from the downstream market.
The Phosphorus Pentachloride market in North America remained strengthened during the fourth quarter of 2021. The offers remained buoyed in the US domestic market amidst the high inquiries from the downstream Electrolyte and EV batteries end-use sector. Whereas the supplies were tight due to delayed deliveries from Southeast Asia, and due to the rising food index besides shortages of Phosphate based fertilizers numerous suppliers diverted their volumes towards the Fertilizers segment. Therefore, the downstream players witnessed a pressurized supply chain of Phosphorus Pentachloride against the strong demand from the downstream EV industries which supported the offers for Phosphorus Pentachloride in the US domestic market.
In the Asia Pacific market, the Phosphorus Pentachloride market remained buoyed despite the eased cost support from the feedstock, throughout the fourth quarter of 2021. Although, the restricted availability induced some hindrance in the Asian market after the deliveries were delayed and inquiries pile up due to high charges and limited availability of the freight vessels in the Asia Pacific region. However, the demand outlook from the downstream EV sector outstrips the supply capabilities in the region. As a ripple effect, the average December FOB Guangdong discussions for Phosphorus Pentachloride were settled at USD 1810 per tonne.
In the fourth quarter of 2021, the European market for Phosphorus Pentachloride witnessed a slight relief after the freight charges dropped and run rates at the Chinese production facilities improved after the power rationing was curbed to some extent. However, the raw material market throughout Europe was drastically impacted by the ongoing energy crisis, and the drastic shortage of Phosphate based fertilizers besides the rising food pricing index forced the domestic suppliers to divert their cargoes towards the Fertilizers segment and concerned the downstream players regarding the supply glut. In response, the quotations for Phosphorus Pentachloride remained buoyed in the European market.