For the Quarter Ending September 2024
North America
The Benzoyl Chloride pricing landscape in North America during Q3 2024 has been defined by a sustained downward trend, with prices declining significantly compared to the same quarter last year. This decrease can be linked to various factors shaping market dynamics. Notably, fluctuations in production costs, variations in demand levels, and challenges within the supply chain have all played critical roles in driving prices lower. The weak demand from essential end-use sectors, particularly the agrochemical industry, combined with limited cost support from feedstock benzene—a crucial component for Benzoyl Chloride production—has exerted considerable downward pressure on prices.
Focusing specifically on the USA, which experienced the most substantial price changes, the quarter marked a notable decline from the previous quarter in 2024. Furthermore, both halves of the quarter exhibited a similar downward trend in prices, reinforcing the pervasive bearish sentiment in the market.
Overall, the pricing environment in Q3 2024 has been characterized by a consistent downward trajectory in the Benzoyl Chloride market, reflecting the numerous challenges faced throughout this period.
APAC
In Q3 2024, the APAC region witnessed a significant decline in Benzoyl Chloride prices, with China experiencing the most substantial price changes. The market was influenced by various factors such as oversupply, weakened demand, adverse weather conditions, and decreased global trade orders. The overall trend was characterized by a bearish sentiment, as prices consistently decreased throughout the quarter. The market momentum was weakening, and the demand side was providing enough support for the market. Seasonal variations, particularly in the agrochemical sector, played a role in the subdued demand, further impacting prices. Additionally, disruptions in the supply chain and logistical challenges added to the downward pressure on Benzoyl Chloride prices. China, specifically, saw a notable -16% decrease in prices from the previous quarter and 5% decrease from the same quarter last year, with a further significant drop between the first and second half of the quarter. The quarter-ending price stood at USD 1030/MT FOB Shanghai, reflecting the challenging pricing environment prevalent in the region.
Europe
In Q3 2024, the European Benzoyl Chloride market experienced a significant price decline, driven by several factors affecting the market landscape. One of the primary influences was the ongoing drop in feedstock prices, particularly Benzoyl Chloride, a crucial raw material in its production. This downward trend in feedstock costs, combined with global geopolitical tensions, high local inventories, and diminished demand from key downstream sectors, collectively applied substantial downward pressure on prices. The oversupply of feedstock further aggravated the situation, directly impacting the production costs of Benzoyl Chloride across the region. In the Netherlands, which saw the most pronounced price changes, the overall trend in Benzoyl Chloride pricing reflected a persistent negative sentiment. The market experienced a significant percentage decline compared to the same quarter in 2023, and the downward momentum continued with a further decrease from the previous quarter in 2024, highlighting a consistent bearish trajectory. Comparing the first and second halves of the quarter revealed a marked decrease in prices, underscoring the ongoing challenges within the pricing environment throughout the region.
For the Quarter Ending June 2024
North America
In Q2 2024, the North American benzoyl chloride market experienced a consistent decline in prices, driven by several significant factors. The quarter began with an oversupply situation exacerbated. This surge in supply, combined with weakened cost support from feedstock benzene due to declining aromatic naphtha prices, continually exerted downward pressure on benzoyl chloride prices. Furthermore, the North American market was also affected by a severe shortage of containers and vessel space, which kept freight rates high despite the overall weak demand.
Focusing on the USA, the price changes were most pronounced, driven by low import prices from exporting regions and persistent adverse weather conditions that suppressed domestic demand. Tornadoes, thunderstorms, and heavy rains led to a significant reduction in agrochemical buying enthusiasm, further dampening market sentiment. This seasonality and adverse weather created a bearish environment, with the price for benzoyl chloride falling steadily throughout the quarter.
The overall market trend for Q2 2024 reflected a negative pricing environment, with a notable 6% decrease in prices from the first to the second half of the quarter. This decline underscores the substantial influence of supply-demand imbalances and external disruptions on the benzoyl chloride market.
APAC
In Q2 2024, the pricing environment for Benzoyl Chloride in the APAC region has been predominantly bearish, driven by multiple significant factors. The quarter witnessed a notable decline in market prices, primarily due to an oversupply situation and weakening cost support from feedstock benzene, which saw reduced demand from end-use manufacturing units. This was further exacerbated by a continuous decline in naphtha prices, a key raw material in the Asian market, leading to lower production costs and enabling companies to reduce their prices. Additionally, adverse weather conditions and subdued global demand, especially from the downstream agrochemical and pharmaceutical sectors, have further suppressed market sentiment.
China, in particular, has experienced the most pronounced price changes. The market saw a continuous decline, influenced by high inventory levels and supply outpacing demand. Seasonal weather disruptions contributed to low procurement activities, while the persistent drop in aromatic naphtha prices and weak demand for benzene exerted downward pressure on benzoyl chloride prices. The overall trend reflected a negative price environment, with the second half of the quarter showing an 8% decrease compared to the first half. Additionally, the price decline from the previous quarter in 2024 was recorded at 2%.
Moreover, plant shutdowns, such as those at Valtris Specialty Chemicals in Belgium and Danyang Wanlong Chemical Co., Ltd. in China, contributed to supply disruptions but failed to stabilize prices due to the overwhelming supply surplus. The quarter ended with the price of Benzoyl Chloride 98% FOB Shanghai in China recorded at USD 1270/MT, underscoring a consistent decline in market prices. Overall, the pricing environment has been negative, reflecting weakened demand and oversupply in the market.
Europe
In Q2 2024, the pricing environment for Benzoyl Chloride in the European region has experienced a notable decline, driven by a confluence of factors that have exerted downward pressure on market prices. The quarter has been characterized by an oversupply of Benzoyl Chloride. The resurgence in production capacity led to a significant increase in supply, which outpaced demand and caused prices to fall. Additionally, lower feedstock costs, particularly benzene, due to decreasing aromatic naphtha prices, further contributed to the downward trend. Weak demand from downstream sectors, especially agrochemicals, exacerbated by unfavorable weather conditions across Europe, led to a reduced need for agricultural inputs, including Benzoyl Chloride.
Germany witnessed the most pronounced price changes. The overall trend in the German market has been bearish, with prices showing a sharp decline throughout the quarter. Seasonal factors, such as persistent wet and waterlogged fields, disrupted agricultural activities, significantly impacting demand. This seasonal disruption, coupled with an oversupply situation, resulted in substantial price reductions. The price of Benzoyl Chloride in Germany saw a significant decrease from the first half to the second half of the quarter.
The pricing environment for Benzoyl Chloride during Q2 2024 has been predominantly negative, with market dynamics heavily favoring a decline. Reduced demand, oversupply, and lower production costs have collectively driven prices down, reflecting a challenging quarter for producers.
For the Quarter Ending March 2024
North America
In the North American market, Benzoyl Chloride witnessed a bearish due to a weak Benzene market, its key feedstock and sluggish demand from downstream industries including paints and coatings. Lower demand for Benzene, particularly in the US, fuelled the price decline. Reduced construction activity and high feedstock costs for Benzene producers dampened production incentives, leading to ample domestic and international inventories.
The US market, a major Benzoyl Chloride producer, mirrored this trend. While prices remained stable throughout Q1, they were down 8% year-over-year and 2% compared to the previous quarter in 2024.
Notably, prices dropped significantly from the first to the second half, indicating a worsening situation. The quarter ended with US Benzoyl Chloride priced at USD 1530/MT FOB USGC, reflecting the persistent downward pressure.
APAC
The pricing environment for Benzoyl Chloride in the APAC region during Q1 2024 has been largely positive, with prices showing an overall upward trend. Several factors have influenced market prices in this quarter. Firstly, there has been increased demand from downstream industries such as agrochemicals, pharmaceuticals, and plastics. This heightened demand has put upward pressure on prices. Additionally, there has been a tight supply of Benzoyl Chloride, leading to a decrease in inventory levels and further driving prices up.
In China specifically, the price of Benzoyl Chloride has seen significant changes. The market has been bullish, with supply levels remaining low and demand remaining high. The surge in demand from the agrochemical sector, specifically for water-soluble fertilizers, has contributed to the price increase. The recent ban on fertilizer exports from China until April 2024 has further intensified the demand for Benzoyl Chloride in the domestic market.
Overall, the pricing trends for Benzoyl Chloride in the APAC region during Q1 2024 have been positive, with prices experiencing an upward trajectory. The market has been influenced by strong demand from downstream industries, tight supply levels, and export restrictions in China. The quarter-ending price for Benzoyl Chloride in China was recorded at USD 1370/MT FOB- Shanghai.
Europe
In the Q1 2024, European Benzoyl Chloride producers saw a bearish market due to rising Benzene prices, their key feedstock. While demand from paints and coatings and pharmaceutical sectors remained steady, concerns over supply constraints and longer transit times fuelled price hikes. Geopolitical tensions and trade disruptions in the Red Sea caused delays and higher freight costs, impacting Benzene supply.
The Netherlands, a major European Benzene market, exemplifies this trend. Compared to the same quarter last year, prices surged sharply. They also rose compared to the previous quarter in 2024, and a notable jump occurred within Q1 itself. The quarter ended with Benzoyl Chloride priced at USD 1670/MT FOB Rotterdam, reflecting a positive pricing environment for European Benzene. However, for Benzoyl Chloride producers, this translates to potentially tighter margins. Rising Benzene costs could force them to adjust pricing strategies in the coming months, impacting their profitability despite a seemingly stable demand outlook.
For the Quarter Ending December 2023
North America
In Q4FY23, benzoyl chloride prices in the USA exhibited a mixed trend, remaining stable in October with moderate demand and steady feedstock benzene. The stability was influenced by factors such as a moderately positive demand outlook. November and December witnessed a drop in prices in the USA market, attributed to low feedstock benzene and weakened demand.
The Israel-Palestine conflict's initial impact on oil prices reversed, with limited effects on USA economies. December saw further price declines due to sluggish demand despite excess benzene supply. Despite anticipated low demand and concerns about geopolitical tensions rerouting oil tankers, some remain optimistic about improvements in 2024, suggesting a potential positive shift in the macroeconomic landscape.
The overall outlook, however, remains negative, reflecting the intricate interplay of economic factors, geopolitical events, and market dynamics shaping benzoyl chloride prices in the USA market. Further, December marked a decline in benzoyl chloride prices as manufacturers strategically destocked, aiming to make room for new inventory. As of December, Benzoyl chloride prices in USA were assessed at USD 1002per MT, FOB Louisiana
APAC
In Q4FY23, benzoyl chloride prices in the APAC region displayed a varied trend, initially declining in October due to weak support from crude oil and lower feedstock benzene prices, subsequently rebounding. The October decline was influenced by oversupply in the market, exacerbated by China prioritizing its domestic fertilizer market, restricting exports and causing a drop in prices. Major chemical companies like Dow, Eastman Chemical, and Huntsman reported decreased sales and earnings in Q3, citing lower volumes and reduced prices, particularly in construction, agrochemicals, coatings, adhesives, and industrial markets. The domestic supply of benzoyl chloride remained stable, meeting optimal production rates, yet with lower demand from downstream agrochemicals. November and December witnessed a price increase as construction in coke companies decreased, and despite lackluster domestic demand, importing countries showed increased procurement, impacting prices. The beauty and personal care market growth in China, coupled with consistent investments in the aromatics sector and collaborations with major players like ExxonMobil, contributed to heightened demand. The supply-demand imbalance led to reduced inventory levels, causing upward pressure on prices, despite a decrease in feedstock benzene costs. Overall, market dynamics reflected a combination of global and domestic factors influencing benzoyl chloride prices in the ASAP region. As of December, Benzoyl chloride prices in China were assessed at USD 1240/MT FOB Qingdao.
Europe
In Q4FY23, benzoyl chloride prices in Europe experienced a mixed trend, initially rising in October due to elevated feedstock benzene and a moderately positive demand outlook. The persistent inflation issue in Europe saw a decline, raising hopes for consumer relief and potential economic stability. Domestic production showed improvement, driven by advancements in manufacturing, but annual figures remained lower. November witnessed a drop in prices in the Netherlands market, attributed to low feedstock benzene and weakened demand, reflecting the declining manufacturing activity in the Eurozone. The Israel-Palestine conflict's initial impact on oil prices reversed, with limited effects on European economies. December saw further price declines due to sluggish demand despite excess benzene supply. Despite anticipated low demand and concerns about geopolitical tensions rerouting oil tankers, some remain optimistic about improvements in 2024, suggesting a potential positive shift in the macroeconomic landscape. The overall outlook, however, remains negative, reflecting the intricate interplay of economic factors, geopolitical events, and market dynamics shaping benzoyl chloride prices in the European market. As of December, Benzoyl chloride prices in Netherlands were assessed at USD 875 per MT, FOB Rotterdam.
