For the Quarter Ending June 2022
North America
The Propylene Carbonate market in the North American region observed significant fluctuations throughout the second quarter of 2022. The development in the market is majorly attributed to the constantly narrowing margin with the upstream Naphtha and feedstock Propylene in the US domestic market. The lesser inquiries of Propylene and derivatives from the Polypropylene industries contributed to a significant reduction in the cost support to producing Propylene Carbonate in the US domestic market. As a ripple effect, the FOB Houston discussion for the Propylene Carbonate was staggered upward in the first half, followed by a consistent plunge in the offers.
Asia Pacific
The Propylene Carbonate market in the Asia Pacific region witnessed mixed sentiments varying with the sub-regions in the Asia Pacific throughout the second quarter of 2022. The COVID restriction on China kept the Northeast Asian market bearish for a considerable duration from the EV sector. However, the inquiries from the personal care and cosmetics industries remained healthy. Even though the Chinese authorities revoked the restrictions on the domestic market, the market sentiments stabilized in the short term. At the same time, the Southeastern market was mainly focused on catering to the demand for personal care and cosmetics sectors.
Europe
During the second quarter of 2022, the Propylene Carbonate market in the European region remains stagnant with several short-term spikes in the pricing trends. The retaliatory sanctions and embargo on the Russian energy supplies will significantly impact the availability of several raw materials. Due to the sanctions, inflation hit the European markets severely, resulting in higher rates and lesser spending, prompting a supply-demand deficit. Although it has been anticipated that the Propylene Carbonate prices in the European market will maintain bullish sentiments. Still, the resurgence of COVID in China and inadequate cost support for the feedstock Propylene kept the PC market staggering upwards within a rangebound.
For the Quarter Ending March 2022
North America
The prices of Propylene Carbonate remained firm in the North American market remains throughout the first quarter of 2022. The upward gyration in the upstream energy cycle due to the conflict in the eastern European region has levied its impact on the downstream supply chain commodities. Therefore, the feed propylene glycol prices remained firm in Q1. Persistent inquiries from the domestic market showcases a better demand outlook for Propylene Carbonate from the downstream EV vehicles in the US market. During the second half of the first quarter, uncertainties in the global supply chain have added extra charges to the freight cost. As a ripple effect, the producer's quotations for Propylene Carbonate in the US domestic market gained by 6.74% by the end of the first quarter,
Asia Pacific
In the first quarter of 2022, the prices of Propylene Carbonate fluctuated in the Asian region. The prices decreased in the Chinese market because of China's zero covid policy. However, prices of Propylene Carbonate increased in the Indian market due to increased demand for downstream EV batteries in the automobile sector, especially in 2nd half of the quarter. Downstream paint industry demand remained stagnant due to the limited construction activities in Q1 of 2022. In March, uncertainties in material supplies raised the production costs of Propylene Carbonate in the Asian region, which boosted the values more significantly in the 2nd half of the quarter.
Europe
Propylene Carbonate prices remained firm in the European market during the first quarter of 2022. The stable demand for downstream EV batteries in the Automotive sector with consistent offtakes. However, feedstock Propylene glycol prices decreased in Q1. The region has already faced a severe crisis in the upstream energy values. In addition, the situation further worsened after Russia invaded Ukraine, which soared the Crude Oil prices and several European players were reluctant to procure the Russian cargoes at the black sea. As a ripple effect, the feedstock's cost support remains high and supports the offers for Propylene Glycol in the European market.
Quarter Ending December 2021
During the fourth quarter of 2021, North America’s Propylene Carbonate market sentiments remained buoyed throughout the quarter taking cues from the supply-demand imbalance throughout the quarter. Whereas, the rebound in the Crude Oil offers soared the offers for upstream Propylene, and the disruptions in the refineries and lower run rates added adequate cost support to the Propylene Carbonate in the US domestic market. the demand outlook remained healthy throughout the quarter as after COP 26 Glasgow the batteries manufacturers rushed to secure the long-term supplies of Electrolytes besides taking the market into more competitive space. As a ripple effect, the offers for Propylene Carbonate witnessed substantial gains in the US domestic market.
The Propylene Carbonate market in the Asia Pacific witnessed a significant gain during the fourth quarter of 2021, and the growth factors were attributed to rising demand from the downstream industries. As Propylene Carbonate is a valuable electrolyte for EV batteries, it's been observed that the prices of battery raw materials have increased by a significant percentage throughout the fourth quarter amidst the supply glut. Whereas, the rebound in the Crude oil offers coupled with the imposition of strict environmental protection norms by the Chinese authorities added an inflationary pressure in the Asia Electrolytes market followed by a robust demand outlook. In response, the offers for Propylene Carbonate remained buoyed throughout the fourth quarter of 2021.
In the fourth quarter of 2021, the Propylene Carbonate sentiments in the European market observed a strengthened position throughout the quarter, taking cues from the tightened supply against the outstripping demand. Whereas the ongoing energy crisis in Europe prevailed its impact in the operational loads at the manufacturing facilities coupled with the rebound in the Crude oil offers which ultimately hiked the operational cost for Propylene Carbonate in the European domestic market. Whereas, after COP 26 Glasgow the demand outlook soared drastically as the inquiries poured from the EV sector. As a ripple effect, the offers for Propylene Carbonate witnessed persistent growth in Q4 2021.
