For the Quarter Ending December 2022
North America
In the fourth quarter of 2022, the North American region's Salicylic Acid market experienced fluctuations. Prices started to increase in Q4 2022 and continued to do so through the second month of the fourth quarter as a result of high manufacturing costs, numerous logistical issues, and rising inflation. Additionally, the market position was maintained well by growing transportation costs and port congestion at the major ports. Moreover, the market was favorably impacted by disarray and a slowdown in API output on the basis of increased energy prices. Salicylic Acid prices rose as a result of rising Feedstock Phenol prices. Later in December, prices started to drop as a result of weakening inflation and declining end-user sector demand as the festival season drew near. Values were accessed at USD 3940/MT CFR Houston at the end of Q4 with an average quarterly inclination of 0.47%.
Asia
The Asia Pacific region's Salicylic Acid market experienced a volatile trajectory in the fourth quarter of 2022. At the start of Q4 2022, it was noted that prices would rise through the second month of the quarter due to rising end-user sector demand, several logistical challenges, and rising inflation. The market was also impacted by the tight zero covid rules and frequent lockdowns in the Chinese regions. The market remained competitive due to growing production costs brought on by rising energy costs as well as increased domestic production to fill orders from both local and foreign markets. Rising phenol feedstock costs had an impact on the salicylic acid industry as well. Salicylic acid costs did, however, decline later in December because domestic retailers had sufficient stock on hand. Additionally, the market remained weak due to the policies' easing and the lackluster downstream demand. Towards the end of Q4, the prices of Salicylic acid were recorded at USD 3390/ton FOB Shanghai (China), with an average quarterly inclination of 0.42%.
Europe
In the fourth quarter of 2022, Salicylic Acid prices in the European region had a see-saw pattern. The downstream market for the pharmaceutical sector was seen to continue to have stable demand for salicylic acid. The ongoing port congestion and supply disruption in the European region influenced the supply chain, which resulted in price hikes in the first two months of Q4 022. Hiked-up freight charges also affected the trajectory of salicylic acid. Retailers in Europe decide to replenish their inventories in significant amounts because of the upcoming Christmas season and the necessity to prepare for it. Additionally, the market scenario remained tight due to rising feedstock phenol prices in the European region. However, the prices decreased considerably in the month of December on the back of ease in inflation, relief in port congestions, and a handful of inventories among the domestic merchants. Towards the end of Q4 2022, the prices of Salicylic acid were recorded at USD 4390/ton with an average quarterly inclination of 0.21%.
For the Quarter Ending September 2022
North America
With the commencement of the third quarter of 2022, the Salicylic acid market showcased decreasing sentiments in the North American region owing to improved and firm supply dynamics and lowering downstream demand. Regardless of the price decrement of feedstock phenol, the North American region witnessed a gradual depletion in salicylic acid prices. Downstream inquiries from the pharmaceutical and food industry have eased out since the conclusion of Q2 2022. At the end of Q3 2022, the prices continued to drop with stable market sentiments. The salicylic acid values were recorded as USD 3890/ton CFR Houston, with an average quarterly declination of 2.72%.
Asia
The Salicylic acid price showcased see-saw market sentiments during the third quarter of 2022 in the APAC region. At the onset of Q3 2022, the price trajectory witnessed a gradual decrement, owing to stable raw material phenol prices, with the ease in geopolitical tension and production halt in various manufacturing units in the Asian region. In the middle of Q3 2022, the prices showcased slight fluctuation towards the higher end, despite the salicylic acid prices significantly dropping following the decrease in raw material prices and lower inquiries. At the end of Q3 2022, the prices of salicylic acid were recorded at USD 3350/MT FOB Shanghai, with a quarterly declination of 0.48%.
Europe
In the European region, the Salicylic acid market dynamics witnessed depreciation on the back of sluggish demand from downstream pharmaceuticals, skincare, and the food industry. At the onset of the first half of Q3 2022, prices increased marginally due to geopolitical conflicts followed by congestion of trade routes. Regardless of the tense trading atmosphere in the domestic market, salicylic acid prices continued to showcase decreasing trajectory owing to lowering inquiries, sufficient inventories, and stable market sentiments. Towards the end of Q3 2022, the price trend for salicylic acid was recorded to be USD 4365/MT CFR Hamburg with an average quarterly declination of 1.18%. Increasing consumption and surging logistics charges in the domestic market further kept the prices on the higher side of the trajectory
During the second quarter of 2022, Salicylic acid showcased decreasing market sentiments in the North American region owing to firm downstream demand and good supply dynamics. Demand from the downstream pharmaceutical and food industry has eased since the conclusion of Q1 2022. Regardless of the slight increase in the prices of raw material phenol, a steady decrement in the prices of salicylic acid was witnessed in the North American region. Towards the termination of Q2 2022, the prices went stable with a moderate increment. At the end of this quarter, the salicylic acid prices were recorded to be USD 5580/ton CFR Houston.
The Salicylic acid price showcased wobbling market sentiments during the first quarter of 2022 in the Asian market. At the onset of Q2 2022, the price trajectory witnessed a gradual increment, owing to an increase in raw material phenol prices, with ongoing geopolitical tension Russia-Ukraine war and production halt in various manufacturing units due to maintenance reasons in the Asian region. Towards the termination of Q2 2022, the salicylic acid prices dropped significantly following the decrement in the prices of raw material phenol. At the end of Q2 2022, the prices of salicylic acid were recorded at USD 3500/MT FOB Shanghai, with a quarterly declination of 0.48%.
In the European region, the Salicylic acid market dynamics witnessed to surge on the back of increased demand from downstream pharmaceuticals, skincare, and the food industry. At the onset of the first half of Q2 2022, the prices increased marginally owing to geopolitical conflicts; trade routes showed signs of congestion following a tense trade atmosphere in the domestic market. Increasing consumption and surging logistics charges in the domestic market further kept the prices on the higher side of the trajectory. Towards the end of Q2 2022, the price trend for salicylic acid was recorded to be USD 4530/MT CFR Hamburg with a quarterly inclination of 5.86%
