For the Quarter Ending March 2024
North America
During Q1 2024, the pricing dynamics of Propyl Paraben in the North American region, especially in the USA, demonstrated a nuanced and complex trend influenced by various factors. The overall trend for the quarter was characterized by a modest upward trajectory, driven by increased downstream purchases in end-user personal care and related sectors. This surge in demand prompted suppliers to adjust their pricing strategies, resulting in proactive price hikes. However, challenges in exports, including shipping disruptions and labor shortages, introduced additional complexities and elevated shipping costs, resulting in higher product prices entering the market. Additionally, limited inventory availability and consistent rises in regional quotations post-Lunar New Year production resumption by the end of February led to insufficient inventories within the region, creating a supply-demand imbalance and keeping product prices on the higher side. Despite this upward trajectory, some resilience was observed due to a reduction in freight charges, which helped alleviate additional price surges and provided merchants with an opportunity to focus on bulk procurement activities.
Furthermore, as of March 2024, the Manufacturing Purchasing Managers' Index (PMI) rose to 50.3%, up from February's 47.8%. The New Orders Index increased to 51.4%, up by 2.2 points, indicating future demand growth. The Production Index surged to 54.6%, a notable increase of 6.2 points. Consequently, the overall market for propyl paraben remained tight, characterized by limited supply offerings within importing nations, resulting in an overall rise in prices. Moreover, the elevated cost of feedstock n-propanol in major producing nations further exacerbated production costs, contributing to the overall upward trend in prices of Propyl paraben globally throughout the final week of the first quarter of 2024.
APAC
In the first quarter of 2024, the pricing dynamics of Propyl Paraben in the APAC region were influenced by various factors, resulting in a continuous upward trend. There was a sustained and significant increase in prices, driven by heightened demand from both domestic and international markets. This surge was supported by a strong export market and favorable industry trends. However, challenges arose due to shipping disruptions caused by the Red Sea dispute, leading to rising shipping costs and market uncertainties. Additionally, the Lunar New Year celebrations in China from February 12th to 16th resulted in temporary operational closures and disrupted trader activity, halting export momentum in Asian markets. Nevertheless, after the holiday period, there was a notable increase in regional and international inquiries for Propyl Paraben, benefiting suppliers and manufacturers. Recognizing the potential for increased profitability, industry stakeholders strategically raised prices to maximize profit margins. Towards the end of the first quarter, the appreciation of the dollar against the Chinese CNY encouraged overseas buyers to procure goods from Chinese suppliers at a lower cost, supported by reduced freight costs. Overall, these factors contributed to a significant surge in Propyl Paraben prices, highlighting the complex dynamics within the global market landscape.
Europe
During the first quarter of 2024, the pricing dynamics of Propyl Paraben within the European region were shaped by a multitude of factors extending beyond the traditional top three influencers. An overarching analysis of the quarter highlighted an optimistic market sentiment, notably characterized by pronounced price fluctuations in Germany. The market landscape in Germany witnessed a consistent uptick in consumer purchasing activity, fueled by heightened demand from downstream sectors in personal care and food manufacturing, which embarked on restocking initiatives. Additionally, supply chain disruptions and currency volatility emerged as significant drivers propelling prices upward. On the supply front, merchants encountered substantial challenges that significantly altered trading dynamics across the region. The issue of limited inventories emerged as a prominent obstacle, impeding their ability to efficiently replenish stocks and fulfill rising demands from downstream segments like preservatives and pharmaceuticals. Consequently, this logistical bottleneck prompted a strategic reassessment of inventory management practices to better align with market dynamics. Despite the escalating costs, traders and importers demonstrated resilience by accepting goods at higher prices than initially anticipated, partly influenced by the depreciation of the Euro against the dollar. This trend was bolstered by the continuous placement of bulk orders across exporting nations, facilitated by the smooth flow of shipments meeting expected delivery timelines. Looking forward, merchants and industry observers anticipate a sustained growth trajectory in end-user demand in the foreseeable future, underpinning a cautiously optimistic outlook for the market.
For the Quarter Ending December 2023
North America
The market trend of Propylparaben precipitous a fall in its prices across the United States in December after witnessing a modest rise first two months of the fourth quarter of 2023. Initially, during October 2023, recent economic data highlighted the robustness of the U.S. economy in comparison to the United Kingdom and the European Union, leading to a strengthening of the dollar against various currencies.
Meanwhile, there was a slight increase in U.S. business output, as the manufacturing sector rebounded from a five-month decline attributed to a surge in new orders. Additionally, market participants anticipated a 4.0% uptick in the Consumer Price Index (CPI) for October 2023, compared to the +4.9% in September. Demand from downstream personal care sectors also experienced a sudden rebound, maintaining an overall upward price trend. Adding to the current situation, the escalating cost of input materials, including energy and raw materials in recent months, further influenced the optimistic market trend for Propylparaben this month. This was reinforced by the increasing production costs and freight charges in exporting nations, impacting the ongoing market trend of Propylparaben within the North American region.
The persistent global supply chain challenges, notably shipping bottlenecks and port congestion, created logistical problems and delays in the delivery of Propylparaben from major exporting nations, primarily China. This was exacerbated by labor shortages ahead of weeklong holidays, contributing to higher prices until the final weeks of November 2023. However, as December 2023 drew to a close, the cost of Propylparaben steadily decreased. This decline was driven by weakened purchasing sentiments for Propylparaben across various industries, particularly in the personal care sector. Furthermore, in the past month within the exporting nations, some experts have suggested a potential overproduction of Propylparaben, leading to an excess supply. This, coupled with price competition among manufacturers, resulted in merchants opting to clear excess stock at the year-end to balance their profits from previous stockpiles. Consequently, this led to a global price drop, even affecting importing regions when December arrived.
APAC
The APAC region witnessed a descending pricing trajectory for Propyl Paraben in Q4 2023, with several factors impacting its market. As October 2023 concludes, the rise in uptake of propylparaben saw a boost due to the arrival of wintry weather. During colder months, people tend to switch to heavier skincare products to moisturize and protect their skin from the cold, dry air. These heavier products often contain higher concentrations of parabens, contributing to the increased demand for propylparaben-based products. Furthermore, according to market experts, the domestic feedstock 1-propanol market for Propylparaben exhibited a mixed pricing trend throughout October. Early in the month, after the National Day holiday, the feed market remained relatively stable. There was consistent consumption in downstream industries, leading to continuous production of propylparaben-based products. This stability further kept the overall market trade momentum balanced, with foreign traders actively seeking new quotations. Following a similar market trajectory throughout mid-Q4 of 2024 and observing the downstream consumption of previous months, manufacturers and suppliers maintained sufficient stock levels to meet this continuous increase in incoming inquiries. This proactive approach further supported the optimistic market trend for propyl paraben in November. Nevertheless, as we approach the conclusion of the fourth quarter, specifically in December 2023, there was a significant yet moderate reduction in the prices of Propylparaben. Simultaneously, a decrease in downstream consumption within regional markets, along with a noticeable decline in new orders from major importing nations, contributed to a tangible downturn in market activity, especially in the personal care sector. Additionally, the depreciation in pricing dynamics was a direct result of Year-end clearance activities initiated by suppliers. Manufacturers strategically lowered their prices as the year came to an end, aiming to clear existing stockpiles in anticipation of the upcoming year.
Europe
During the entire fourth quarter, the market for Propyl Paraben in the European region, primarily in Germany followed the market trend of other importing countries such as North America. The prices rebounded considerably across the German market as October 2023 commenced. This was supported by the arrival of the winter season resulting in an increased demand from the food, cosmetic, and personal care industries downstream sector. Adding up to this, the rising cost of upstream N-Propanol across exporting nations supported the overall market trend for Propyl Paraben on the upper side because of higher importing costs. Furthermore, owing to this sudden rebound in downstream consumption the merchants focused on placing newer orders and sustaining their profit margins which additionally supported the continuous price rise until the final weeks of November. In the meantime, the rising cost of freight supported by the higher cost of production across the major producing regions, kept the overall transportation cost on the northerly side further supporting the continuous surge in CFR Propylparaben prices. However, moving towards the end of Q4-2023, the Propylparaben prices experienced a steady decline, indicative of a weakened trend. As per the market experts, the prevailing anticipation was centered around the expected increase in inquiries for downstream products incorporating propylparaben, particularly from the personal care sectors. Contrary to these expectations, a divergent trend unfolded as December approached, compelling merchants to adjust their inventory levels as demand witnessed a modest drop. Additionally, trade activity also faced additional setbacks due to dreary demand within the regional market.
For the Quarter Ending September 2023
North America
Moving toward the beginning of the third quarter, the prices of Propyl Paraben constantly rise across the US market on the back of a consistent rise in offtakes from end-user preservative sectors. Owing to this, the traders would consider placing newer orders from exporting nations. Furthermore, higher upstream cost, moderate supply, and a higher Consumer Price index contributed to Propyl Paraben's upward market trajectory throughout July. As mid-Q3 approaches, Propyl Paraben prices underwent a sudden decline within the US market. This abrupt drop in the price values of Propyl Paraben was caused by the overabundance of supply and a significant decrease in new orders. In addition, the price of shipping propyl paraben to the US increased, which further discouraged retailers from placing additional orders in exporting countries. The reduction in purchasing activity and the global alleviation of supply chain disruptions allowed access to the accumulation of downstream products, which allowed domestic suppliers to sell Propyl Paraben at a lower price. The price decline that persisted in September 2023 and maintained its downward trend may have also been influenced by this speculative selling.
Asia Pacific
The Asia Pacific region, primarily in China, demonstrates an overall pessimistic market outlook throughout the third quarter of 2023 as the prices showcase a descending trajectory. With a modest increment in demand from both the domestic and overseas markets, the prices rose at a continuous rate in July within the Chinese market, leading the merchants to keep their stock levels enough to cater to the overall upcoming inquiries. However, moving towards the mid-Q3, the inquiries from the regional market dropped, resulting in a significant decrease in export momentum. Also, according to market experts, during August, China's factory activity shrank for a fifth straight month, signaling that the slowdown in the world's second-largest economy may not yet have bottomed out. In contrast, the official manufacturing purchasing managers' index, however, rose slightly to 49.7 in August from 49.3 in July, according to National Bureau of Statistics data. This was better than the median forecast of 49.4. A PMI reading above 50 indicates an expansion in activity, while a reading below that level points to a contraction. This trend even worsened in September, which was further supported by a persistent drop in new orders, resulting in an excessive stockpiling among the merchants.
Europe
Throughout the third quarter of 2023, the prices of Propyl Paraben depicted a dwindled price trajectory across the European market, primarily in Germany. The decline in domestic inquiries for Propyl Paraben in the recent month significantly impacted pricing. This drop in demand was brought on by a general slowdown in the world economy that was seen throughout the entire mid-Q3, which had an effect on supply-demand activity from end-user pharmaceuticals and personal care industries. Market insiders say downstream companies have not yet increased their customers' prices. Further adding to the current Scenario, the rising cost of input energy raw materials resulted in a higher manufacturing cost in exporting regions, which kept the market sentiments in a downward direction until the end of Q3. Apart from that, the fuel charges during the entire month of August surged, resulting in higher trade expenses. The traders further pulled back their newer quotations and were highly concentrated on destocking their previous stockpiles first.
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.
For the Quarter Ending December 2022
North America
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.
Asia Pacific
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.
Europe
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.
For the Quarter Ending September 2022
North America
The Propylparaben market has witnessed decremented pricing sentiments in the North American region during the third Quarter of 2022 due to the fluctuating downstream Propylparaben demand from various pharmaceutical industries. At the onset of Q3, Propylparaben prices decreased stably due to weaker demand. Followed by a similar trend, the prices went down in the mid q3 owing to sturdy requirements and sufficient stocks with the suppliers, which balanced the overall downstream market. Furthermore, towards the termination of Q3, the prices went down significantly and settled at USD 7415/MT CFR Los Angeles in the United States.
Asia Pacific
In the APAC region, the prices of Propylparaben witnessed a decline in market sentiments throughout the third Quarter of 2022. Weaken downstream demand and sufficient supplies with the domestic merchants supported the pricing tendency for Propylparaben in China. Further, following the mid of q3, the prices recorded for Propylparaben showcased a weaker demand due to lessening customer purchasing activities from the domestic markets. Moreover, towards the termination ofq3, the demand declined significantly, propelling the market participants to reduce their further quotations and destock their stockpiled inventories. With this, the prices in the q3 settled at USD 7100/MT FOB Shanghai in China.
Europe
The prices of Propylparaben in the European market mimic a similar trend as those of North America. Supply and demand fundamentals were on the weaker side, resulting in the stockpiling of downstream with the domestic merchants. Until mid-q3, demand for Propylparaben in Germany remained stable as a balance between the supply and demand side was observed in the domestic market. Additionally, fluctuations in trade activity from exporting countries affected the market value of Propylparaben at the end of q3. Also, the slow offtake from downstream pharmaceuticals was one of the factors behind this weak price trend in Germany. Thus, with the end of q3, the prices of Propylparaben settled at USD 7650 /MT CFR Hamburg.
For the Quarter Ending June 2022
North America
The Propyl-paraben market has witnessed a mixed sentiments in its prices in the North American region during the Second quarter of 2022 due to the fluctuating downstream Propylparaben demand from various pharmaceutical industries. On the onset of Q2 the prices for Propyl paraben went down significantly owing to weaker demand. Further towards the end of first half of Q2 the prices increased owing to higher upstream Propan-1-ol prices which positively affected the market of Propylparaben in the North American region. However, the extended port congestion leading to enhanced freight charges and container shortage from India, a significant exporter to the United States, also positively affected the propylparaben market. Again, with the termination of second quarter the prices for propyl paraben were assessed was USD 7470/MT CFR Los Angeles.
Asia Pacific
The prices of Propylparaben in India remained on the upper end throughout the Second Quarter of 2022. The increased feed Propan-1-ol prices led to a consistent rise in Propylparaben prices in the market. Further, heightened exporting activities from India to various other regions increased freight charges and delayed supplies resulting in an overall price increment in the market growth for Propylparaben. Higher demand caused the supply disruption and reduced Storage with the traders in the market, which affected the prices of Propylparaben. Further. In India, the prices of Propylparaben settled at 572000/MT Ex -Mumbai in June 2022.
Europe
In the European market, Propylparaben prices witnessed an upward trajectory in the second quarter of 2022, which was supported by the strong feedstock Propane-1-ol price values. Furthermore, demand from the downstream pharmaceutical manufacturers rose continuously throughout the quarter. Additionally, an increased demand resulted in the supply crunches, which also led to expensive production that pushed the cost of Propylparaben further. Despite that, the extended exporting activities from India to various other countries in the European region, mainly Germany and Belgium, heightened freight charges and shortage of containers, causing the Propylparaben prices to increase. Furthermore, the prices for propyl paraben were assessed with the termination of second quarter was USD 7670/MT CFR Hamburg.
