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.
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.
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.
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.
