For the Quarter Ending June 2023
North America
The prices of Propyl paraben demonstrate a mixed market trend within the North American region. Throughout the second quarter, the prices increased at a moderate level in the month of April, following the market trend of previous months. While as May commenced, the prices went down at the same rate which was balanced with overall supplies accumulated among the merchants. However, as the second quarter marks its end, the values incline again with decreasing inventory levels. During the month of April, the steady increase in consumer demand, firmed trade momentum that led to persistent import activity, and a decrease in ocean freight cost all supported the positive market sentiment for Propyl paraben. But as May 2023 approaches, the prices for Propyl paraben declined considerably as demand from downstream cosmetics and personal care industries decreased moderately, which resulted in increasing in inventories among the local suppliers, fearing their profit losses. Owing to this, the merchants halted their newer orders and focused on destocking their prior stockpiles first. With the termination of Q2-2023, the prices rebounded at the same rate as they increased in the month of April. However, the overall inquiries witnessed by the suppliers were balanced with the supplies presented to them. With this, in June, Propyl paraben costs across the region were assembled at USD 7310 /MT CFR Los Angeles.
Asia Pacific
In the APAC region, the prices of Propyl paraben witnessed an ambiguous price trend during the second quarter of 2023. As in the Chinese market, the prices for Propylparaben depicted a mixed market sentiment, while in India, the prices demonstrate a descending trend. At the start of April, the prices surged at a moderate level in the Chinese market. This was supported by consistent domestic and overseas inquiries resulting in increasing manufacturing activities. While as May commenced, the prices dropped considerably as a result of weakened offtakes from domestic personal care and cosmetic industries. However, the inventories recorded by the merchants were more than enough to meet the overall surge in inquiries until the end of June 20233. On the other side, across the Indian market, the prices for Propyl paraben move in descending order, ending the second quarter on a bearish note. A decrease in export orders from the international market, according to market participants, confirmed weak supply-demand activity, which further added stress to an already weak market trend. Overall, the price of Propyl paraben at the end of June stood at USD 7050/ MT FOB Shanghai in China while USD 6698.98/MT Ex-Mumbai in India.
Europe
The prices of Propylparaben during the second quarter of 2023 mimicked the market trend like that of Chinese marker across the European region, primarily in Germany, as the prices surged following the trend of the previous month in the month of April while declining steeply in May and rebounded again in June. April's market trend for propylparaben was supported by moderate demand, which was balanced with supplies presented among the market participants. Additionally, the market's supply is adequate from the upstream sector, leading to consistent demand that further maintained the northward trend of the propylparaben market throughout April. However, the German pharmaceutical excipient market experienced a significant slowdown throughout May, and ongoing supply problems coupled with limited factory output in exporting nations and feeble inquiries of Propylparaben on the lower side have kept its prices moving on the downward side during May. Moreover, moving toward the termination of Q2, the prices started to surge as a result of improved demand from downstream pharmaceutical, personal care, and cosmetic sectors. Also, the appreciation of the Euro against the USD during this month resulted in cheaper imported goods for German consumers, which further supported the positive market trend for Propylparaben for this month. With this, the prices of Propylparaben across the German market were assembled at USD 7245/MT CFR Hamburg.
For the Quarter Ending March 2023
North America
Throughout the first quarter of 2023, the prices of Propyl Paraben continue to remain in the upward direction on account of improved domestic demand and limited supplies among the market participants. Compared to December 2022, inventories for Propyl Paraben among the market players were enough to cater to the overall necessities in early January. Followed by the mid of the first quarter, ease in trade momentum along with a consistent surge in requirements compelled the traders and suppliers to raise their quotations and additionally supported the positive price trend for Propyl Paraben. Overall, the prices for Propyl paraben were assembled at USD 7361/MT CFR Los Angeles in the United States.
Asia Pacific
In the APAC region, Propyl Paraben prices inclined throughout the first quarter of 2023. During the first half of the first quarter, i.e., in January 2023, the market sentiments somewhat improved in China during the holiday-shortened month of January, primarily on account of rising demands following the Lunar New Year as both consumption and production increased significantly as the government abandoned its zero-COVID policy. Until the end of this quarter, the prices raised at a moderate rate and were recorded at USD 7188/MT FOB Shanghai during February, compelling the manufacturers to raise their production activity and procure their shelves with downstream Propyl paraben stocks.
Europe
The prices of Propyl Paraben witnessed a sturdy inclined price trend in the first quarter of 2023 as the inquiries from the downstream sector increased moderately. Moreover, despite political concerns about over-dependence, trade between Germany and China increased to a record level as 2023 approached, putting China as Germany's top trading partner for the seventh consecutive year. A balance between the supply and demand side was observed in the domestic market in early January, but as February approached, the prices for Propyl Paraben got settled at USD 7640/ MT CFR Hamburg. Additionally, improved trade activity, along with a consistent inquiry from exporting countries, reinforced the market value of Propylparaben until the end of March 2023.
During the fourth Quarter of 2022, the market of Propylparaben witnessed an ascending price trend. With the start of October, the prices inclined considerably on the back of increasing downstream Propylparaben demand from various pharmaceutical industries. Following the mid-q4 the cost of Propylparaben remained on higher side significantly supported by Higher global demand, supply chain disruptions and European energy prices. With this, the prices for Propylparaben recorded got assembled at USD 7526/MT CFR Los Angeles in the month of November. Moreover, towards the termination of the fourth quarter Propylparaben market started to decline as the demand became lighter along with the thanksgiving holidays, resulting in stock pining of inventories among the market participants.
Propylparaben prices started to surge at the beginning of October across Asia Pacific, most notably in China, due to an increase in end-user demand,. The local market's attitudes toward Propylparaben were improved by continuing the zero covid policy and ceasing manufacturing activity. A sharp rise in Covid infections—a highly contagious sub-variant of Omicron—in China also contributed to a rapid decrease in pricing at the start of December, greatly raising the risk to global supply chains. Dealers and market participants reduced their future orders, which affected the trajectory of Propylparaben as a whole. With this, Propylparaben prices were set at USD 7257/MT FOB Shanghai during November 2022.
The European market also demonstrated a similar pricing trend as of Asia pacific for Propylparaben during the final Quarter of 2022. Prices remained on the upper side due to the domestic market's somewhat sloped downstream demand up until the middle of the fourth Quarter. With this, the USD 87950/MT CFR Hamburg price of Propylparaben in Europe was made clear during the mid-q4. Trade flows in Germany, and the rest of the Eurozone partially resumed because of some breathing space, which did not significantly support the market fundamentals of Propylparaben within the region. The demand for goods and services from the end-user industry did, however, stay muted due to the current economic challenges with the end of the year 2022. Additionally, these changes in the market attitude were supported by weaker consumer purchasing patterns.
