For the Quarter Ending June 2024
North America
In the second quarter of 2024, the North American Propylene Carbonate market showed mixed trends. Early in the quarter, prices fell due to oversupply and weak consumer procurement, leading to price declines. Demand for Propylene Carbonate remained steady at moderate levels, with ample product availability in the local market. Industry experts note that many consumers are reluctant to purchase large quantities of Propylene Carbonate at higher prices from downstream and terminal markets. Despite strong sales in March, many automakers faced subdued performance in April, with only electric vehicle sales showing notable growth.
U.S. consumer interest in electric vehicles has declined, with surveys indicating that only a small segment of the population is interested in EVs. However, hybrid vehicles continue to garner strong interest due to their electrification benefits without significant lifestyle changes. Additionally, Tesla is nearing the loss of its position as the top EV seller in the U.S., as other manufacturers sold approximately 597,000 fully electric vehicles over the past year compared to Tesla's 618,000. This highlights increasing competition and potential market saturation concerns for EVs.
On the supply side of Propylene Carbonate, freight charges along major sea trade routes have risen, making shipments to the U.S. more costly. Unexpected increases in ocean freight demand from Asia, driven by restocking cycles in Europe and North American importers advancing peak season demand, have put additional strain on the already stretched container market. However, reduced conflict risk premiums, especially in the Middle East, have eased concerns about supply disruptions, leading to further reductions in international freight charges.
APAC
In Q2 2024, the Propylene Carbonate market in the APAC region experienced a period of price stability, largely attributable to balanced supply and demand fundamentals. The stable pricing environment was sustained by consistent demand from the downstream chemical and pharmaceutical industries, coupled with moderate procurement activities from the lithium-ion battery manufacturing sector. Additionally, steady international crude oil prices have provided a predictable cost baseline for the production of Propylene Carbonate, ensuring minimal fluctuations. Focusing on China, the country has experienced the most significant price movements within the APAC region. Overall trends in China's market have displayed a stable sentiment, characterized by consistent supply and moderate demand. Despite seasonal variations typically impacting market dynamics, such as increased activity during peak manufacturing seasons, the second quarter has seen a notable equilibrium. The correlation in price changes has been steady, with a slight 2% increase from the previous quarter in 2024, indicating a positive yet stable market environment. A comparative analysis of the first and second half of Q2 2024 shows no significant price difference. This stability underscores a well-balanced market with efficient supply chain management and predictable demand cycles. Conclusively, the pricing environment has remained stable overall, with the latest quarter-ending price affirming this sentiment. The market’s resilience and balanced dynamics suggest a continued stable outlook for Propylene Carbonate pricing in the region.
Europe
During the second quarter of 2024, the Propylene Carbonate market in Europe faced several constraints that significantly impacted prices. Despite experiencing instability due to weak consumer demand, prices remained relatively stable. Demand from the downstream lithium-ion battery sector was moderate. In major exporting nations, sellers consistently reduced prices in response to an oversupply situation, as producers increased production levels in anticipation of higher import volumes in April compared to March. This indicated a trend of supply recovery for the Propylene Carbonate market. In Europe, Propylene Carbonate prices dropped in mid-Q2 due to weak demand fundamentals, despite support from steady upstream raw material prices. Finished product inventory levels helped maintain market balance, although spot transactions remained stable. Data showed a decline in domestic sales, even though consumption in downstream markets stayed consistent. The slowdown in electric two-wheeler growth was linked to reduced subsidies and challenges faced by some OEMs, along with delays in subsidy disbursements impacting affordability and market expansion. Additionally, increased freight charges across major sea trade routes have made shipments more expensive, adding strain to the container market due to unseasonal demand and potential restocking cycles. Overall, the Propylene Carbonate market remains calm, with limited activity observed in the region.
For the Quarter Ending March 2024
North America
In the first quarter of 2024, the North American propylene carbonate market continued to confront challenges. The supply of propylene carbonate in the region remained high, while consumption remained sluggish and procurement levels remained heavy from previous periods. The domestic automotive industry's demand for propylene carbonate stayed low, reflecting the cautious approach of market participants. Major manufacturers focused on fulfilling long-term orders, leading to lower domestic inventories due to slow replenishments.
Moreover, international trade encountered hurdles during this period, driven by conflict in the Middle East and drought in the Panama Canal. These factors resulted in delayed container shipments and increased freight costs. The growing competition from Chinese electric vehicle manufacturers further impacted the profitability of US-based EV companies, exacerbating market challenges. Additionally, high interest rates raised the cost of financing, which slowed down the adoption of electric vehicles globally.
Despite persistent inflation in other consumer goods, the purchase of optional electric vehicles remained slower than anticipated. These factors contributed to the overall bearish sentiment in the North American propylene carbonate market. Nevertheless, procurement from battery manufacturing firms remained underwhelming due to lackluster demand. In contrast, the electric vehicle market demonstrated steady sales throughout Q4, with major players reporting increased month-on-month sales. Additionally, the global electric vehicle battery market remained subdued in Q4 amid tepid demand.
APAC
Propylene Carbonate prices in the APAC region experienced a downward trend in Q1 2024. The market was influenced by several factors, leading to decreasing prices. Overall, the demand for Propylene Carbonate was weak, particularly in downstream industries such as electrolytes and solvent manufacturing. The abundant availability of material in the region resulted in reduced procurement and destocking practices. Additionally, the sluggish global economy and low consumer confidence impacted the demand for Propylene Carbonate.
In China, the largest market for Propylene Carbonate, prices decreased by 16% compared to the same quarter last year. The market was characterized by stable supply and weak demand, resulting in subdued market sentiments. The Lunar New Year holidays also contributed to reduced manufacturing activities and limited new orders. Within Q1 2024, China experienced a 5% decrease in prices compared to the previous quarter.
However, there was a slight price increase of 2% in the second half of the quarter compared to the first half. This can be attributed to improved supply and demand dynamics, with factories focusing on arranging orders and shipments. The quarter-ending price for Propylene Carbonate FOB Qingdao in China was USD 910/MT, reflecting the overall decreasing sentiment in the pricing environment.
Europe
During the first quarter of 2024, the Propylene Carbonate market in Europe encountered various challenges that significantly affected prices. These difficulties resembled those of the previous quarter, with oversupply playing a pivotal role in reducing demand and subsequently lowering prices. The continued sluggish demand from the downstream lithium-ion battery manufacturing sector persisted, as consumers remained cautious amid declining prices.
Additionally, the dominance of the Chinese market in Europe contributed to the overall bearish sentiment. Chinese electric vehicle manufacturers, like BYD, witnessed substantial sales growth, surpassing Tesla as the leading global electric carmaker, further intensifying competition and impacting the profitability of European-based EV companies. However, Belgium stood out as an exception, experiencing a significant surge in sales of battery electric cars.
Moreover, global trade faced hurdles during this period due to conflict in the Middle East and drought in the Panama Canal, resulting in delayed container shipments and higher freight charges. Despite these challenges, fierce pricing competition among European, US, and Chinese EV manufacturers persisted. Throughout this period, the market experienced multiple shutdowns, leading to disruptions that directly influenced prices. Despite these obstacles, there were some slight developments in market transactions for Propylene Carbonate in Belgium during the quarter.
For the Quarter Ending December 2023
North America
In the final quarter of 2023, the North American propylene carbonate market displayed a varied trend with prices fluctuating throughout the quarter. Over three months, the demand outlook remained moderate as consumers hesitated on new purchases and primarily focused on long-term orders. In the initial month, demand remained unstable due to ample material availability observed in the domestic market.
As November unfolded, increased consumer spending and enhanced market activities positively impacted the overall economic landscape. However, downstream industries experienced only modest demand. Despite concerns about a potential recession, inflation, and geopolitical uncertainties, consumer confidence in the US grew in both November and December, indicating an optimistic view of future business conditions.
Nevertheless, procurement from battery manufacturing firms remained underwhelming due to lackluster demand. In contrast, the electric vehicle market demonstrated steady sales throughout Q4, with major players reporting increased month-on-month sales. Additionally, the global electric vehicle battery market remained subdued in Q4 amid tepid demand.
APAC
The Propylene Carbonate market in the APAC region witnessed a stable trend in the fourth quarter of 2023. The demand from downstream industries remained moderate to high, particularly in China, which is the largest market for Propylene Carbonate in the region. The supply remained moderate with adequate inventory levels available in the domestic market. However, the market sentiments were bullish due to increased production costs and positive market conditions. The top three reasons that impacted the market were the stable demand from downstream battery manufacturing and textile dyeing industries, adequate supply, and firm supply chain operations. Additionally, there were no plant shutdowns during this period. The pricing trend of Propylene Carbonate in China exhibited a correlation of 0.6 with a negative percentage change of 2% from the previous quarter. The percentage change in price from the first half to the second half of the quarter was -3%. The pricing trend in the current quarter was lower than the same quarter of the previous year by 21%. The latest/quarter-ending price of Propylene Carbonate FOB Qingdao in China was USD 912/MT.
Europe
In the final quarter of 2023, the European propylene carbonate market displayed a bearish pricing trend influenced by various factors. In October, prices experienced a decline due to subdued demand from downstream sectors such as electrolyte solvent manufacturing and other end-use industries. Manufacturing production in the Eurozone contracted, marked by a notable drop in new orders, despite a marginal improvement in the manufacturing PMI, indicating an extended downturn. The sluggish consumer demand led to eased supply chain operations. As November unfolded, prices continued to decline, driven by persistent low demand from downstream industries. The consumer market observed abundant material availability in the region. Despite a slight improvement in the PMI, manufacturing activities remained on a downward trajectory. Supply chain easing and improved vendor performance were noted amidst subdued consumer demand and limited market transactions. December witnessed a further decrease in prices due to sustained subdued demand. Downstream industries maintained weak consumer inquiries, resulting in negative market sentiments. High product inventories and destocking activities were evident among consumers. Prices of upstream raw materials dropped, and factory gate deflation persisted. Year-end holidays and destocking efforts contributed to reduced industrial activity, prompting manufacturing companies to slow down or temporarily suspend operations.
For the Quarter Ending September 2023
North America
The market sentiments of Propylene Carbonate in North America showcased a mixed pricing trend in the third quarter of 2023. Over three months, the demand outlook remained moderate amid consumers’ reluctance for new purchases and were mainly focusing on long-term orders. The first month observed sufficient material availability in the domestic market. However, as per the government GDP data, the economy improved at an increased pace from July to September despite higher interest rates, depleted pandemic savings, and high inflation. Further, the industrial manufacturing output rose to the highest level in months. However, in September, the prices increased slightly as the demand conditions improved. Moreover, amid enhanced consumer spending, businesses across the region showcased positive development in the market. However, the procurement from the battery manufacturing firms was underwhelming due to lackluster demand, whereas the electric vehicle market did not show any signs of improvement. Furthermore, the electric vehicle battery market across the globe remained suppressed in Q3 amid tepid demand.
APAC
In the third quarter of 2023, the Propylene Carbonate market demonstrated a bearish pricing trend in the Asian market. According to market players, there was sufficient material availability in the region, which stalled new purchase orders from the downstream battery manufacturing business. The cost support from the upstream Propylene Oxide fluctuated throughout this period, and as a result, the manufacturing costs oscillated. Additionally, the impact of the production cut announcement of crude oil by Russia and Saudi Arabia also influenced the production costs of the product. In August and September, the domestic stocks were running high due to higher operating rates in some industrial units and increased supply volumes in the domestic market. The consumer inquiries from the downstream battery manufacturing firms were poor. The Chinese domestic demand forecast remained average, owing to deteriorating market circumstances and slow inquiries from the downstream battery production and textile dyeing sectors in both domestic and international markets. As of September 2023, the prices of Propylene Carbonate were assessed at USD 924 per tonne.
Europe
Europe’s propylene carbonate market exhibited bearish sentiment in the third quarter of 2023. Throughout Q3, the prices plummeted on a week-on-week basis due to sluggish demand from the downstream electrolyte solvent and other end-use industries. However, due to high inflation, higher interest rates, and fluctuating raw materials and energy prices, consumers mostly purchase on a need basis as inflationary pressure continued to loom the business sentiments in the region. The eurozone economy shrank in this quarter as per the surveys done by a few market participants that showed that demand fell at the fastest pace in the past three years amid consumer spending remaining low owing to rising borrowing costs and higher prices. Additionally, the manufacturing sector PMI data suggested a contraction in industrial activity as both outputs in the services and manufacturing sectors declined. However, procurement from battery manufacturing businesses was disappointing due to low demand, while the electric car sector showed no indications of revival. Furthermore, the global electric vehicle battery market remained subdued in Q3 due to sluggish demand.
For the Quarter Ending June 2023
North America
Prices of Propylene Carbonate observed mixed sentiment during the second quarter of 2023. In the month of April, the price of propylene carbonate declined due to the negative cost-push of the feedstock propylene oxide. The demand from downstream industries like consumer products remained subdued due to high-interest rates to curb the inflationary pressure. The demand from the consumer electronics and EV section remained stable and showed a bullish trend. Inventory levels were adequate, and imports from China and South Korea significantly affected domestic pricing. In the months of May and June 2023, the prices of propylene carbonate showed a stable trend with a slightly bullish sentiment in the market, as the consumer demand improved as inflationary pressure was reduced. Downstream industrial demand improved for the coatings, cosmetics, and paint industries. The demand for EVs and consumer electronics also improved. Imports from South Korea and Japan helped in stabilizing the price for the second quarter. Prices of propylene carbonate in North America were settled at USD 2600/MT in the month of June 2023.
APAC
Prices of Propylene Carbonate showed a floating trend in the second quarter of 2023. In the month of April, in the Chinese market, the price of propylene carbonate showed a bearish trend due to the negative cost-push of the feedstock propylene oxide. The supply chain remained resilient. The demand from the downstream value chain showed a bearish trend, specifically in chemical industries, because of a weak recovery from COVID-19. The price decline across the quarter amounts to 15.5 percent in the Chinese markets. Inquiries reveal that Chinese exports to the US declined due to high inflationary pressures and dovish consumer sentiments. Demand from the EV industry was stable, and inventory remained adequate, but exports to Europe and North America showed a decline on a YOY basis. In the Indian market, the price of Propylene carbonate showed a similar trend. Demand from the downstream value chain remained weak, and the operational capacity was on the lower end. The feedstock prices in India rose, hurting the profit margins. Imports from China, and South Korea substantially affected the price in the Indian market. Prices of Polypropylene Carbonate FOB Qingdao were settled at USD 1018/MT in the month of June 2023.
Europe
Prices of Propylene Carbonate showed a floating trend in the second quarter of 2023. In the month of April, the prices declined due to the negative cost-push of the feedstock Propylene Oxide. In Q1, the demand from the downstream value chains remained dovish because of the supply disruptions caused by the Russia-Ukraine war. This trend continued in the month of April. In the months of May and June, the price of Propylene carbonate showed improvement and turned bullish due to a positive cost push from the feedstock propylene oxide. The demand from the downstream value chains remained 'neutral.' The eurozone composite purchase managers' index has fallen to a score of 48.9 in July from 49.9 in June, according to the flash estimate. The lower reading means activity among surveyed firms contracted at an even steeper pace than in the prior monthly period. Both the service and manufacturing sectors registered lower PMI readings. Chemical Industries' demand showed a declining trend due to lower margins of profitability and operational capacity utilization. Demand from EV and battery sector showed a bullish trend due to low inventory stocks. The price of Propylene Carbonate in the European Market in the month of June ended up at USD 2600/MT.
For the Quarter Ending March 2023
North America
In the first quarter of 2023, the Propylene Carbonate market exhibited a mixed pricing trend in the North American region. In January, the prices were stable in the region amid slow market activities. The supply and demand were moderate this month. In February, the prices tumbled further amidst a wait-and-see consumer market attitude in the region as the Asian market participants reported a drop in electric vehicle sales and built-up inventories, and the downstream consumers were reluctant to place new orders. Whereas in March, the prices dropped further amid weaker cost support from the upstream Crude oil and sluggish overseas inquiries. As per the market participants, the battery manufacturers had adequate inventories to cater to the downstream demand in the region.
APAC
The market prices of Propylene Carbonate showcased a bullish pricing trend in the first quarter of 2023 in the Chinese domestic region. In the first month, the prices observed a significant rebound, and as per the market experts, due to supply constraints created amidst the Lunar New Year holidays. In the second month, the prices improved further amid positive cost support from the upstream Propylene in the domestic market. The demand outlook from downstream battery manufacturing remained moderate in this period. In March, the market sentiments for the product stabilized amid weaker cost support from the upstream raw materials and wait-and-see consumer attitude in the region. The procurement rates were low amid ample availability of the product in the region.
Europe
In the European region, the Propylene Carbonate market showcased bullish market sentiments in the first quarter of 2023. In the first month of Q1, the market prices increased slightly amid dampened market activities in the region due to the looming energy crisis. Also, the cost support from the upstream Propylene increased this month. In the second month, the prices rose further, backed by increased procurement rates from the downstream automotive industry and an increase in manufacturing activities. The supply of the product in the region remained relatively high as the imports of the commodity rose. In the last month of Q1, the market dynamics stabilized, and the prices dropped slightly due to a drop in the cost of upstream Crude oil. The operating rates were weak and sluggish inquiries were reported in the region, and ample inventories of the product in the region.
For the Quarter Ending December 2022
North America
Overall the Propylene Carbonate market in the North American region has observed mixed sentiments throughout the fourth quarter of 2022. This development has been majorly attributed to the weakened cost support from the feedstock Propylene Oxide in the domestic market. At the same time, the slowdown in the APAC Electric Vehicle (EV) market has also impacted the regional EV market across the North American region. However, the operating rates at the facilities were lowered amidst the disruptions related to extreme weather conditions. As a ripple effect, the DDP USGC discussions for Propylene Carbonate were assessed at USD 1263 per tonne n December 2022.
Asia Pacific
The Propylene Carbonate market in the Asia Pacific region has observed an ambiguous sentiment during the fourth quarter of 2022. In the first two months of the quarter, the market has remained bearish due to the lower consumption and drop in the cost support from the feedstock Propylene Oxide in the Chinese domestic market. In addition, the drop in the sale of EVs has made the manufacturers cautious about the uncertain purchases of electrolytes. In response, the participants have closely monitored the market movement closely ahead of the revocation of the EV subsidies in China. Whereas, in the latter half, the discussions soared after the Chinese authorities unprecedently eased the COVID restrictions leading to a sudden surge in restoking practices of Propylene ahead of the upcoming holidays. In addition, the cost support from feedstock has soared substantially. As a ripple effect, the FOB Qingdao discussions for Propylene Carbonate were assessed at USD 1095 per tonne in December 2022.
Europe
In the fourth quarter of 2022, the Propylene Carbonate market in Europe has observed mixed sentiments throughout the term. As per the market experts, this development has been majorly attributed to the rebound in trading practices from the overseas market after the market activities resumed by the end of the third quarter. However, due to the high inflation and interest rates, the market has become more conservative, and market activities have dampened. In response, the market lacked competitiveness, and the FD Antwerp discussions for Propylene Carbonate were assessed at USD 1213 per tonne in December 2022.
For the Quarter Ending September 2022
North America
In the third quarter of 2022, the Propylene Carbonate market in the North American region remained observed a substantial increment in the offered quotations. This market trend has been majorly attributed to the consistent offtakes from the downstream EV segment, as the market participants were uncertain about any hurricane-related disruptions in the US domestic market. In addition, the offtakes from the downstream EV segment, pharmaceuticals, and cosmetics have remained consistent. The FOB Texas discussions for Propylene Carbonate were assessed at USD 1438 per tonne in September as a ripple effect.
Asia Pacific
In the third quarter of 2022, the Propylene Carbonate market in the Asia Pacific witnessed mixed sentiments. This development has been majorly attributed to the subdued market activities in the domestic market. At the same time, the downstream facilities' operations remained subdued amidst the rising inflation and power rationing in the Chinese domestic market. At the same time, the power rationing levied a significant impact across the downstream value chain, suppressing the domestic market's overall demand. Although overall demand improved by the end of the quarter but remained restricted as the new energy reforms presented by the Chinese authorities concluded a limited amount of energy. In response, it impacted the operations but remained restricted in the Chinese domestic market. As a ripple effect, the FOB Qingdao discussions for Propylene Carbonate were assessed at USD 1145 per tonne in September.
Europe
The Propylene Carbonate market in the European markets was bearish in the first half of the month, whereas the latter half remained stagnant. The economics and commercial activities remained subdued for the majority of terms amidst the summer holidays in the European markets. In addition, the market activities rebounded in September. In addition, the EUR depreciated against the USD. However, the domestic market is clouded with numerous uncertainties as inflation soared to historic highs that suppressed the market dynamics in the domestic market. As a ripple effect, the DDP Antwerp discussions for Propylene Carbonate were assessed at USD 1345 per tonne in September.
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
North America
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.
Asia Pacific
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.
Europe
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.
