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.
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.
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.
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.
