For the Quarter Ending June 2022
North America
In the second quarter of 2022, Phthalic Anhydride prices in the North American area began to rise. As the downstream production of polyester resins strengthened, so did the need for Phthalic Anhydride. The market for Phthalic Anhydride was further inflated by the restricted supply of upstream Crude due to the import ban on Russian goods. Moreover, the price trend for Phthalic Anhydride in the region increased with the significantly rising feedstock o-Xylene prices. The import charges were soaring as the demand from the domestic market was inflating. Additionally, the high fuel prices and the skyrocketing freight charges also laid the foundation for the price hike.
APAC
Fluctuating price trend was observed throughout the second quarter of 2022 in the Phthalic Anhydride market. As a result of the COVID resurgence, the market was closed in April, which initially caused the price to decline. The stock was piled up due to the port congestion and poor purchase. The lockdown limitations were loosened by the mid of Q2, which resulted in the resumption of domestic markets. Additionally, the delay in export from South Korea due to the South Korean trucker’s strike inflated the Phthalic Anhydride pricing. Moreover, the Phthalic Anhydride market was stimulated by the increased demand from the downstream Polyester resin manufacturers.
Europe
The domestic UK market for Phthalic Anhydride expanded in the second quarter of 2022. The rising demand from the local and regional markets inflated the price of Phthalic Anhydride. The Russian incursion on Ukraine increased the cost of upstream Crude, which influenced the feedstock o-Xylene and positively impacted the Phthalic Anhydride market. Besides. The optimistic price trend of Phthalic Anhydride was retained by the high demand from the end-use automotive, agricultural, pharmaceutical and chemical sectors. The increasing requirement for the downstream polyester resin also influenced the Phthalic Anhydride market. In addition, the traders were obliged to quote high prices due to the high freight costs brought on by the soaring fuel prices.
For the Quarter Ending March 2022
North America
During the first quarter of 2022, prices of Phthalic Anhydride price rose rapidly due to the soaring upstream crude values and feedstock O-Xylene prices. Moreover, skyrocketing freight charges and container shortage resulted in a delay in supply, affecting Phthalic Anhydride market. Furthermore, continuous market growth was attributed to the high demand for Phthalic Anhydride in the formulation of Polycarbonate plastics, fungicides, Resins, and Amines in paint & coatings, construction, and automotive industries. Prices of Phthalic Anhydride in the US towards the end of the quarter surged to USD 1791 per MT for FOB Louisiana in March.
Asia Pacific
Phthalic Anhydride prices showcased strong growth in the quarter ending March 2022 due to rising raw material costs which led to the steep escalation. The rise in crude values have been pressurizing global traders to raise their values in order to maintain profitability. Besides, lockdown restrictions in China had a severe effect on the domestic market prices. Furthermore, growing demand from downstream plasticizers, polyester resin, paints & coatings sectors further caused surging in Phthalic Anhydride prices in Q1. By the quarter ending March, prices of Phthalic Anhydride in India were observed at USD 1562 per MT for CFR JNPT.
Europe
By the quarter ending 2022, prices of Phthalic Anhydride witnessed mixed sentiment. Initially, in January and February, prices dropped as the demand from downstream PVC, paint and coating, resins fell due to high inventory levels. Cost of Phthalic Anhydride settled at USD 2595 per MT in February. Later in the month of March, prices witnessed a marginal rise due to the surge in raw material prices. Due to the Russia-Ukraine war, prices of upstream crude soared, affecting the Phthalic Anhydride market. In addition, the rise in freight charges have further impacted the cost of Phthalic Anhydride in Q1 in Europe.
For the Quarter Ending December 2021
North America
In the North American market, Phthalic Anhydride prices experienced a marginal hike during the fourth quarter of 2021. Phthalic Anhydride market sentiments remained stable in this duration backed by the firm demand from the downstream Agrochemicals, Plasticizers and Pigments manufacturers. In the US market, limited availability of the product on the spot basis was witnessed due to lower export from Europe and Asia that contributed to the inflation in the prices of Phthalic Anhydride in Q4. Phthalic Anhydride FOB Texas prices were settled at USD 1450/MT in December.
Asia Pacific
In the Asia Pacific region, Phthalic Anhydride prices witnessed a downward trajectory in the fourth quarter of 2021 backed by ample supplies and stable to narrow demand. In India, a steep decline in the prices of Phthalic Anhydride was seen in this timeframe supported by the lower buying momentum and ample supplies. Besides in the last month of the quarter, traders were trying to finish their inventories due to year-end, keeping the spot prices low. Hence, Phthalic Anhydride Ex-Ahmedabad prices tumbled down to USD 1213.26/MT from USD 1318.45/MT in the timeframe of October to December. Similarly in China, FOB Dalian Phthalic Anhydride prices were assessed at USD 1057/MT in December showcasing a dip of USD 166/MT since October owing to the lower enquiries from downstream PVC makers and Lull trade activities due to end of the year. Furthermore, pricing trend of the upstream O-Xylene had also supported the price curve of Phthalic Anhydride in Asian markets.
Europe
In the European market, Phthalic Anhydride prices rose effectively during the fourth quarter of 2021backed by the firm demand from downstream Unsaturated Polyester Resin (UPR), Plasticizers, Agrochemicals manufacturers. Moreover, rising production costs due to exorbitant energy charges led to the surge in Phthalic Anhydride prices in the domestic market. Furthermore, supply constraints due to shortage of shipping containers kept the pricing trend high in the region during Q4. Thus, in November PAN prices soared to USD 2910/MT however, in December Phthalic Anhydride prices eased due to dull market sentiments at the end of the year. Hence, FCA Koeln Phthalic Anhydride price was last assessed at USD 2865 per MT in December witnessing an overall hike since October.
For the Quarter Ending September 2021
North America
An increment in Phthalic Anhydride prices was observed during the third quarter of 2021 in the North American market. The 3rd quarter had no scheduled turnarounds for Phthalic Anhydride plants in the US. However, supply fundamentals remained snug in the region which was further exacerbated by the lack of imports as logistics issues persisted throughout the quarter. Bolstered demand from the downstream construction industry continued to be the key consuming end of the material across the US in Q3 of 2021.
Asia Pacific
The prices of Phthalic Anhydride rose effectively in the Asia Pacific region in Q3 of 2021 backed by the firm demand outlook. In India, after a long run of investigation, the government imposed anti-dumping duty over imports of Phthalic Anhydride on imports from China, Indonesia, South Korea, and Thailand in the month of August. This decision of the leading Indian authorities led to a further spike in the price of domestic Phthalic Anhydride in the country. CFR JNPT (India) prices shot up from USD 1010/MT to USD 1103/MT from July to September. Due to significantly firm demand from the downstream polyester resin manufacturers, prices kept running on a high note in India till the end of Q3.
Europe
The European market of Phthalic Anhydride witnessed an upward trend in the third quarter of 2021. The market reported extremely low supply of Phthalic Anhydride coupled with constrained overseas import. The demand increased throughout the quarter from the downstream paints and coating, and Unsaturated Polyester Resin (UPR) sectors which led to the surge in Phthalic Anhydride prices. FCA Koeln PAN price was last assessed at USD 2775 per metric tonne in September.
For the Quarter Ending June 2021
North America
The regional Phthalic Anhydride supplies were negatively impacted as turnaround at several facilities imbalanced the supply-demand scenario in early Q2. Market supplies witnessed an improvement in the latter half of the quarter as the producers ramped up production with surging demand. Several spot buyers were seen stocking up their inventories ahead of the turnarounds to keep the production in downstream industries smooth. The prices followed an uptrend throughout the quarter with FOB Louisiana prices touching USD 1390 per tonne in June. Market participants also pointed at raw material Ortho-xylene shortages which resulted in cost pressures for phthalic anhydride manufacturers.
Asia Pacific
The market outlook of the Asia Pacific region witnessed mixed sentiments, during the first half as the prices observed a constant downfall with the producers fearing setback of the demand erosion as COVID cases erupted in several parts of Asia. Many market participants remained anxious over the demand outlook as the key importer India was badly impacted with the second wave of COVID restricting its industrial and commercial activities for more than a month. Prices in India retreated after a historic surge in Q1. In May, Indian producers raised concern over increasing Phthalic Anhydride imports from China, Indonesia, South Korea and Thailand. CFR prices in India dropped to USD 1235 per Mt due to overall market slowdown.
Europe
Phthalic Anhydride production remained capped in the first half of Q2 as one of the key players in Europe conducted a catalyst change routine in their reactor. Enquiries from the downstream plasticizers industries surged amidst production-related hinderances and limited Phthalic Anhydride supply while the demand from the paints and coating sector remained stable. Downstream Unsaturated Polyester Resin (UPR) sector noted improved enquiries but lacking supplies of the raw materials remained the key concern of the producers.
For the Quarter Ending March 2021
North America
The supplies of Phthalic Anhydride in the North American region were tight due to reduced imports. The market witnessed nearly 50% fall in its Phthalic Anhydride imports on Y-o-Y basis due to high shipping freight cost and limited product availability. Several plants operated normally without disruption despite freezing weather which hit the USA Gulf region. However, demand was sluggish as offtakes by plasticizer manufacturers declined as the region faced shortage of other key raw materials in February, followed by the disrupted automotive sector. However, it is observed that several key players in the region restocking their inventories ahead of planned turnaround in the next quarter which surge the prices of Phthalic Anhydride in the region. Phthalic Anhydride FOB Texas prices for March deliveries were assessed at USD 1210/MT.
Asia-Pacific (APAC)
The Asian Phthalic Anhydride market was balanced to tight during the first quarter of 2021, as Thai Continental petrochemical plant was on a turnaround, compounded by delayed cargoes from China due to the Lunar New Year holidays. High shipping freight charges further tightened the market situation. Demand was balanced throughout the quarter due to better offtakes from other Asian plasticizer consumers. In India, Phthalic Anhydride prices witnessed an enormous surge in March as compared to the February due to sturdy demand and material shortage. CFR JNPT prices hiked by USD 382/MT on m-o-m basis in March.
Europe
The European Phthalic Anhydride supplies were tight during the first quarter of 2021, owing to reduced imports from Asia and USA. The Suez Canal blockage in March added to high shipping freight worrying several importers. Extreme cold weather in the northwest Europe further created the transportation hinderance and delay in supplies of the key feedstock of o-xylene and naphthalene. Demand improved during the quarter due to better offtakes from the downstream automotive and construction sector.
For the Quarter Ending September 2020
Asia
As several plants that were earlier under turnaround resumed production, supply for Phthalic Anhydride (PA) considerably improved with respect to the previous quarter. The domestic demand in China took a positive turn by the end of September, while exports from the country viably reduced as manufacturers were keen towards catering to the local downstream demand. Traders expressed optimism over the mega infrastructure campaign organized by the Chinese government to revive the looming construction industry, which is expected to contribute well for surging the demand for PA by the end next quarter. As the demand fundamentals were steady, around 1000 tonnes of the material from Northeast Asia was sold to China. PA cargoes from the Northeast Asia were sold at USD 600 per tonne in the late-September to early October period. With the permanent shutdown of Korea’s LG Chemical PA unit in August, the region suffered a loss of 60 tonnes per year production capacity that in long run is anticipated to create a considerate demand-supply gap in Asia.
North America
Supply of Phthalic Anhydride in the US remained sufficient with respect to the regional demand. Although supply of feedstock Orth-Xylene was disrupted by the maintenance at the key trade route of Illinois river which started in July and is expected to last till late October. This did not hamper the production of PA immediately as majority of manufacturers had already stockpiled enough cargoes of feedstock till the year end. Demand from the paint and coatings segment appreciably picked up with increase in number of remodeling and construction projects during the indefinite lockdown period. However, offtakes from the automotive industry remained dampened amid consistent increment in unemployment rate and reduced expenditure on consumer goods.
Europe
Lockdown induced in the second quarter continued to weigh over the market fundamentals of the European Phthalic Anhydride till mid of July due to high inventories of PA. In August, the condition marginally improved with a long maintenance turnaround in a large-scale PA plant. By the end of September, regional Phthalic Anhydride market witnessed much needed revival, supported the strong downstream demand form the UPR segment. After the slow crawl in July-August period, PA demand recovery was fast pace, far above the market expectations.
