Anisole prices in the Asia-Pacific (APAC) region experienced a downward trend during the first half of December, primarily driven by a combination of weakening demand and ample supply within the region.

During the first half of December 2024, Anisole prices in China declined by 0.8%, ending a period of stability observed over the past few weeks. This downward trend was primarily attributed to a reduced disparity between demand and supply in the Chinese Anisole market. The government's continued export restrictions led to an accumulation of domestic supplies, aimed at maintaining lower domestic prices.

The Chinese market saw sufficient inventories of domestically produced Anisole during the current week. Manufacturing units maintaining robust capacity, operating at high production rates. The government's decision to halt fertilizer and related chemical exports resulted in significant stockpiles within the domestic market, stabilizing prices and ensuring ample availability for local demand.

Demand for Anisole in China remained relatively low during the current week, with market activity showing no significant changes. There were no new bids or inquiries, reflecting a stable but unremarkable demand pattern. Export opportunities appeared limited, as there have been no indications of policy shifts that would permit exports in the near term.

Most market participants anticipate that any relaxation of export restrictions will not occur until at least the second quarter of the upcoming year. This ongoing export ban continues to contribute to the stockpiling of Anisole within the domestic market, as production levels remain high and export channels remain closed.

In India, Anisole prices also declined due to various market factors. With the usual post-festive season slowdown, demand from the agrochemical sector remained weak, contributing to the price drop. The market saw a cautious sentiment among buyers, which impacted overall pricing trends.

This week, Anisole prices declined by 0.8%. With the onset of winters, seasonal slowdown persisted. Several firms scheduled plant shutdowns for maintenance reasons, to cope up with the supply-demand imbalance. However, buying interest remained subdued as the year-end approached.

Demand for Anisole, primarily driven by the agrochemical segment, remained subdued. The post-festive period saw a continuation of weak demand from end-use industries, leading to cautious purchasing behavior.

This cautious approach was further influenced by the overall market sentiment, which anticipated potential further price reductions. Additionally, the broader economic uncertainties and the decline in raw material costs contributed to the weakened demand, reinforcing the downward trend in Anisole prices.

Looking ahead, Anisole prices may see minor fluctuations in the coming week. With existing inventories gradually depleting, there could be some upward pressure on prices in the subsequent weeks. However, these are expected to be minor price adjustments. Demand is anticipated to remain sluggish as the year-end approaches