For the Quarter Ending June 2023
North America
As per the assessment, Polyphenylene Sulfide prices fluctuated in the US market during Q2 2023. As per the data, Polyphenylene Sulfide prices declined marginally during the first month of the quarter i.e., April, and kept on tracing an uptrend for the rest of the quarter. It was observed that the US market, which has been struggling with high inflation and lower-than-expected recovery in economic activities kept affecting the pricing dynamics of several commodities including Polyphenylene Sulfide. Further, during the mid of the quarter, consumption of Polyphenylene Sulfide in the construction sector gradually increased as indicated by the Production price index (FRED) of the Industry of Cement and Concrete Product Manufacturing in the US which rose from 233.3 (May) to 234.1 (June) experienced stronger trading activity than the previous month. The increase in downstream demand elevated the product price in the US market.
APAC
Polyphenylene Sulfide prices followed a downward trajectory throughout the quarter in the Asian market. In May 2023, the Indian market witnessed a significant decline in the price of Polyphenylene Sulfide (PPS) GF-40% CFR JNPT, which decreased by 1.1%. This drop in price was attributed to ample product availability and moderate to low demand from domestic downstream buyers. Cheaper imports from major key Asian countries also influenced the pricing trajectory. The Index of Industrial Production (Manufacturing) fell to 138.1 in April 2023 from 147.1 in March 2023, indicating a significant decline in the country's manufacturing activities. The market situation was described as bullish with a moderate to high supply and moderate to low demand. Traders were uncertain about the continuity of the uptrend in prices. In April 2023, the PPS price rose marginally by 0.9%. The demand for the product kept increasing, leading to a price rise, but a short-term shortage in spot availability was the key factor. Prices had started to decline in the regional markets by the start of the July month, which eased down the prices in the second half of the quarter.
Europe
As per the recent assessment, Polyphenylene Sulfide prices fell during Q2 2023 on the back of low demand from the domestic market amidst ample stocks in the region. The European key players have been battling with high inflationary pressure and low consumer demand. Therefore, on the back of high inflation and prolonged economic dullness, demand for multiple commodities including Polyphenylene Sulfide reduced during this timeframe affecting the pricing dynamics of the product. Furthermore, internal issues of the nation have also been bothering market sentiments, where the violence that erupted in France also affected regional trade activities. Furthermore, as per key economists of the world, Germany eventually went into recession during the mid of the quarter, and the UK has been on the edge. Consequently, overall market sentiments were low throughout the quarter, which reduced the demand of Polyphenylene Sulfide from the downstream industries. Additionally, regional freight charges also remained high throughout this timeframe, but it didn’t affect the prices of Polyphenylene Sulfide in the meantime.
For the Quarter Ending March 2023
North America
In North America, demand for Polyphenylene Sulfide remained moderate to low throughout the first quarter of 2023. The major driving factor behind this demand was slow economic activity despite uninterrupted production in the country. According to data, the North American automotive sector partially improved by the end of the quarter but remained lower than expected due to prolonged inflationary pressure. The frequent price revisions by the FED on domestic interest rates remained a major concern for the country's economy, as it was resisting actual growth and pressuring the demand for the product in the country.
Asia
The Indian market for Polyphenylene Sulfide (PPS) witnessed a slight price increase in March 2023 due to a surge in seasonal demand from downstream industries. The market is currently bullish, with moderate to high demand and moderate supply. The absence of a potential recession threat and improved performance of downstream industries contributed to the current price trajectory. In February 2023, the domestic market for PPS also experienced a slight price increase due to stable demand, while major exporters faced weak demand in their local markets. Overall, Indian traders maintained their prices as demand in India remained comparatively better than in other major economies.
Europe
European economy performed expectedly low due to the repercussion of the Russia-Ukraine war, which has been putting pressure on regional economic activities. As per the data, demand for PPS from the domestic Automotive sector remained low, while other sectors like construction and textiles also performed seasonally low. Despite some disturbances in the supply chain due to snow, supplies remained stable to firm, and the overall demand-supply gap was narrow enough to support the downward price trend. The threat of recession was decreased, generating optimism for future demand.
During mid-November, the American market witnessed a seven-month low in goods exports due to weakening global demand and increasing dollar value, creating a declining price trend of upstream sulfur in the last quarter of 2022. Despite the decreasing temperatures and festive holidays at the conclusion of the previous quarter having an effect on the domestic market's upstream benzene production rate, it did not impact the declining price trend of PPS in the USA. The poor performance of the downstream automotive industry in the US during the final quarter of 2022 weakened the buying sentiments of Polyphenylene Sulfide (PPS) in the American market.
Due to a low production rate, upstream benzene prices in the Asia-Pacific market have been continuously falling. Due to falling feedstock (crude oil) prices in the global market, the final quarter saw a decline; as a result, suppliers and end users stocked up on the commodity leading to the easing of Polyphenylene sulfide (PPS) costs. The poor performance of the downstream automotive sector in the Asian markets has led to weak buying sentiments of PPS, especially in China. A decline in freight charges in the Asian region reduced the demand for upstream Sulphur in the Asian market, abetting the price drop of PPS during Q4 2022.
The upstream Sulphur market was congested, and downstream demand was high. The expansion of the winter storage market was delayed, and the need for Sulphur was poor, along with easing feedstock crude oil in European markets assisting the steady drop of Polyphenylene sulfide (PPS) price throughout the fourth quarter of 2022. The rising inflation rates in the European region drove down the demand from the downstream automotive industry leading to a poor buying attitude, further contributing to a price drop of PPS in Europe. As the region's seasons changed during Q4 2022, demand for upstream benzene decreased due to the low employment rate, further abetting PPS price drop in the Chinese market.
