For the Quarter Ending March 2024
North America
In the North American Benzyl Chloride market in Q1 2024, the Benzyl Chloride prices have been declining as a result of decreasing Toluene, a key feedstock. Lower demand across industries using Toluene, including solvents and Toluene Diisocyanate (TDI), has led to excess Toluene inventory and a downward price trend.
The United States, the region's biggest Toluene market, reflects this well. Compared to the same quarter last year, Toluene prices dipped 2%, and a further 6% decrease occurred within Q1 2024. Prices even fell 4% from the first to the second half of the quarter, signifying a consistent decline.
Given this scenario, the outlook for Benzyl Chloride, derived from Toluene, is uncertain in North America for Q1. The recent Benzyl Chloride price of USD 1435/MT FOB Louisiana in the US underscores the bearish market sentiment.
APAC
The pricing environment for Benzyl Chloride in the APAC region during Q1 2024 has been characterized by mixed trends and fluctuations. Overall, the market sentiment has been influenced by various factors, including supply and demand dynamics, currency fluctuations, and global market conditions. In the APAC region, benzyl chloride prices experienced a decline in February, primarily due to subdued demand from the downstream agrochemical sector and oversupply in regional markets. This led to decreased prices, particularly in importing nations. However, there was a slight recovery in prices in March, driven by limited supply resulting from production tightening and delays in imports caused by container shortages. Despite this recovery, prices are expected to decline again in April due to anticipated reduced procurement activities and sluggish demand from downstream derivatives. The surge in demand led to low inventory levels, contributing to positive market sentiments. The latest quarter-ending price for benzyl chloride in India was recorded at USD 1040/MT CFR JNPT. Overall, the pricing environment for benzyl chloride in Q1 2024 has been largely negative, with price fluctuations influenced by factors such as supply and demand imbalances, feedstock costs, and market dynamics in importing countries.
Europe
The European Benzyl Chloride market in Q1 2024 faced a complex scenario between supply chain adjustments, geopolitical tensions, and economic factors. Ample feedstock toluene stockpiles offered some stability despite fluctuating import flows and steady demand from TDI and solvent sectors. However, this didn't translate to price hikes due to the buffer of existing inventories.
Geopolitical uncertainties in the Middle East led European countries to diversify imports, increasingly relying on the US to fill the gap left by decreased Eastern inflows. This, coupled with rising naphtha prices, squeezed toluene producer margins. Upcoming refinery maintenance further threatened supply tightening.
Despite these challenges, European manufacturers' adept management of costs and supply chains prevented drastic fluctuations. The quarter ended with cautious optimism as the industry navigated economic uncertainties and supply risks without major disruptions, showcasing the resilience and adaptability of the European chemical sector. This cautious outlook, however, casts a bearish dynamics on the Benzyl Chloride market, heavily reliant on toluene feedstock.
For the Quarter Ending December 2023
North America
In Q4FY23, benzyl chloride prices in the USA market experienced a decline throughout the quarter due to weak support from feedstock toluene and subdued demand from downstream industries. The decrease was influenced by eased cost pressure from toluene and crude oil, with high inventories reported by the American Petroleum Institute in October contributing to a reduction in manufacturing costs.
Demand remained moderate from downstream sectors like paints, coatings, and solvents, but faced challenges amid geopolitical tensions, high interest rates, and a strong US dollar affecting exports. Strength in the US dollar against the Euro reduced the exports to the European countries like Netherlands. Sluggish demand for feedstock toluene from industries like paint and coating, led to rising inventories and downward pressure on benzyl chloride prices.
Additionally, the paint and coating industry experienced sluggish demand during the off-season winter period. As of December, Benzyl chloride prices in USA were assessed at USD 994/MT (FOB Texas).
APAC
In Q4FY23, benzyl chloride prices in the APAC region showed mixed sentiments. The decline in October, influenced by weak cost support from upstream toluene, was compounded by Reliance's decreased earnings and oversupply in the global market. High supply, driven by low toluene prices, met low demand in the agrochemicals sector, reflecting a challenging global agrochemical market. November saw a dip in Indian prices due to China's downturn, weak toluene cost support, and oversupply globally. A "wait and see" approach characterized the market with low downstream activity. In December, despite weak cost support, benzyl chloride prices in India rose due to increased demand from construction, festive alcohol sales, and a thriving pharmaceutical sector. Alcohol sales witnessed a remarkable surge, with some industry players experiencing a demand increase of over 20% compared to the previous year. Simultaneously, the pharmaceutical sector in India displayed robust demand, recording a value growth of more than 9% in December Ongoing infrastructure projects fueled demand in paints, coatings, and solvents, while rising freight charges from the USA to Asia added pressure. The surge in India's benzyl chloride prices was driven by robust demand from downstream sectors, particularly construction and the alcoholic industry, with a notable 20% increase during the festive season. As of December, Benzyl chloride prices in India were assessed at INR 91100/MT CFR JNPT
Europe
In Q4FY23, benzyl chloride prices in the European market witnessed a decline throughout the quarter, primarily due to weakened support from feedstock toluene and subdued demand from downstream industries. This decline was influenced by the alleviation of cost pressure stemming from toluene and crude oil, aided by high inventories that contributed to reduced manufacturing costs. The inquiries from domestic downstream sectors, particularly paints and coatings industries, remained at low levels. The market has been operating with diminished activity as economic conditions continue to negatively impact business sentiments in the region. The persistent introduction of new production capabilities in China and the Middle East, combined with sluggish demand growth and shrinking profit margins, is prompting chemical companies to contemplate the permanent closure of older facilities. Additionally, according to Dow's 3Q23 report, the Construction Chemicals business reported a net sales decrease compared to the same period last year. Local prices experienced an 18% year-over-year decline, affecting all operating segments and regions, primarily attributed to lower feedstock and energy costs. Sequentially, local prices decreased by 7%, primarily reflecting lower prices in Europe, the Middle East, Africa, and India (EMEAI). As of December, Benzyl chloride prices in Netherland were assessed at USD 931/MT, FD Amsterdam.
For the Quarter Ending September 2023
North America
Benzyl chloride prices in the North American region fluctuated during Q3 2023, following a similar trend to prices in other regions around the world. Prices initially declined due to weak demand and moderate supply, but they stabilized and even increased slightly in the later part of the quarter due to increased demand and rising feedstock prices. Demand for benzyl chloride from downstream industries, such as fertilizers and pharmaceuticals, began to increase in the later part of Q3 2023. The prices of feedstocks for benzyl chloride production, such as toluene and chlorine, began to rise in the later part of Q3 2023. This increased the cost of production of benzyl chloride, which put upward pressure on prices. Benzyl Chloride prices increased by an average of 2% during September due to rising feedstock prices and increased demand from downstream industries.
APAC
Benzyl chloride prices in the Asia Pacific region followed a similar trend to prices in the European and North American regions during Q3 2023. Prices initially declined due to weak demand and moderate supply, but they stabilized and even increased slightly in the later part of the quarter due to increased demand and rising feedstock prices. Demand for benzyl chloride from key end-use industries such as agriculture, dyes, perfumes, pharmaceuticals, and resins was weak during Q3 2023. This was due to a combination of factors, including the ongoing war in Ukraine, high inflation, and slowing economic growth. In the later stages of Q3, the prices of feedstocks for benzyl chloride production, such as toluene and chlorine, began to rise in the later part of Q3 2023. This increased the cost of production of benzyl chloride, which put upward pressure on prices.
Europe
Benzyl chloride prices in the European region fluctuated during Q3 2023, following a similar trend to prices in other regions around the world. Prices initially declined due to weak demand and moderate supply, but they stabilized and even increased slightly in the later part of the quarter due to increased demand and rising feedstock prices. Demand for benzyl chloride from key end-use industries such as agriculture, dyes, perfumes, pharmaceuticals, and resins was weak during Q3 2023. The supply of raw materials for benzyl chloride production, such as toluene and chlorine, was moderate during Q3 2023. This helped to keep prices in check. There was a surplus of benzyl chloride inventory in the European market during Q3 2023. This was due to the combination of weak demand and moderate supply. In the second half of Q3, Benzyl Chloride prices increased by an average of 3% during September due to rising feedstock prices and increased demand from downstream industries.
For the Quarter Ending June 2023
North America
The overall outlook of Benzyl chloride prices in the Q2 of 2023 in American markets had been bearish on the back of weak demand received from the downstream dyes, plasticizers, lubricants, and drugs industries. Additionally, benzyl chloride is extensively utilized in the synthesis of amphetamine-class drugs, which is monitored directly by the US Drug Enforcement Administration, as demand from this sector has also witnessed a negative trend, thereby further pulling down the Benzyl chloride prices. Subsequently, the American markets witnessed a notable worsening in the market value of Benzyl Chloride because of cheaper operating rates and a significant reduction in labor costs in the American subcontinent. Consequently, the inventories of Benzyl Chloride had been in surplus as the product's consumption in the local market continued to shrink. From the standpoint of demand, the industries related to dyes and pharmaceuticals have experienced a notable decrease, thereby releasing pressure on the specialty chemicals sector within the region. Further, the feedstock Toluene prices also declined in the region, consequently making the prices follow the persistent decrease.
Asia Pacific
In the Asia Pacific region, the prices of benzyl chloride witnessed an unstable trend in the entire second quarter of 2023, collectively observing a price decline in lieu of an ample supply of the product in the Asian markets. The value per unit quantity(USD/ton) exported from the Japanese port fluctuated, showing mixed trends with a variation of USD 6.87268 ton to USD 6.4940663 per ton from April to June noted at the Japanese ports as per the sources mentioned on the ITC trade map website, which is further expected to follow the similar trend in direct relation with the demand mentioned from the downstream drugs, resins, cosmetics based industries. Further, the push dynamics observed in the costs of the Benzyl chloride in the Indian market, which exceeded the supply dynamics by a huge margin and lesser demand received from the downstream sectors as dyes, plasticizers, drugs, lubricants, resins, and cosmetics has further put the prices of Benzyl chloride in the Asian market on the downtrend. Further, the decreasing prices of the feedstock toluene and chlorine have put the prices of Benzyl chloride on the pessimistic facet.
Europe
The prices of Benzyl chloride observed a mixed trend throughout the entire second quarter of 2023 in the sight of rising inventories in the European region of Belgium, Germany, etc., and weak demand noted from the downstream dyes, plasticizers, and lubricants industry simultaneously. Despite the decline in freight charges for transportation from East Asia to Europe, this reduction has had minimal impact on the overall market value of Benzyl Chloride. The demand from importing USA, Italy, Turkey, and Brazil rose as the downstream dyes, plasticizers, and lubricants market increased in those regions. Further, in Germany IFO Business Climate index has fallen, and market participants have witnessed a decline in the prices towards the end of Q2 2023, specifically in Germany. In June, the IFO Business Climate Index fell to 88.5 points, down from 91.5 points in May. Further stable crude oil and LNG market is expected to keep the cost pressure on the softer side. On top of that, the underwhelming performance of the construction industry and the higher interest rates in the rise of inflation had further hampered the consumption rates resulting in further price decline.
For the Quarter Ending March 2023
North America
In Q1 2023, the price of Benzyl Chloride remained constant and rising. More sales are being generated by the supply chain industry in the USA market, along with a modest increase in the value chain industry and stable inventories. Bullwhip effects were caused by slight increases in customer demand, which led to a slight increase in orders being placed higher up the supply chain to avoid stockouts. However, the supply chain was unable to react quickly, which resulted in a temporary product shortage in the local market. According to the dealers in the region, the raw toluene supply in the North American region was likewise largely stable.
Asia
The prices of Benzyl Chloride were de-escalated in the European market during Q1,2023 with costs at INR 136000/ton Ex-Mumbai. The market conversation was sparse, the industry was pessimistic about the future market, and the price continued to fall last week because of the negative trend of feedstock Toluene and the weak domestic demand for dyes and intermediate. The demand from the downstream fertilizers industry decreased, affecting market sentiments. The pharmaceutical and downstream dye industries' declining demand is having an impact on market sentiment and lowering product consumption. Additionally, it was noted that freight costs in India were declining, which relieved the product's cost pressure.
Europe
Throughout the first quarter of 2023, the market price of Benzyl Chloride in Europe continued to go steadily upward. The market's feedstock Toluene supply was moderate, and the downstream market in the area observed an increase in purchases. The German market's supply chain condition was manageable enough to accommodate downstream purchases from the medicines and fertilizer markets. The price increase for Benzyl Chloride is brought on by both an increase in demand from downstream industries like fertilizers and pharmaceuticals as well as an increase in the price of the feedstock Chlorine in the German market. Workers in the manufacturing and logistics supply chain, particularly those operating production lines and truck drivers, are feeling some pressure from the stable demand for Benzyl Chloride by traders.
For the Quarter Ending December 2022
North America
During the fourth quarter of 2022, the price of Benzyl Chloride fluctuated in the North American market, with the imports from Germany, Belgium, and Mexico to the United States of America plunging as per the region's supply situation and procurement. The inventories of the product were sufficient to meet the demands from the downstream dyestuff, pharmaceutical, and resin industrial sectors. However, feedstock prices (Liquid Chlorine) rose in the USA due to widespread Chlorine shortage and tight supplies. The drop in demand and purchase from downstream plasticizers and drugs market affected the market sentiments in the region. The declining price trend of Toluene has been attributed to the reduction in offtakes from the terminal sector coupled with tumbling upstream Crude Oil prices.
Asia
The market value of Benzyl Chloride plummeted in the Asian market during Q4 2022, with the pricing trend following a downward see-saw direction. The prices of Benzyl Chloride decreased in the Indian market with a weakening in the importing feedstock (Toluene and Chlorine) cost and plummeting demand from the downstream fertilizers industry. The imports of Benzyl Chloride were low from the exporting countries, which caused a shortage of products in the domestic market during the middle of the quarter and the imports of Benzyl Chloride were low from the exporting countries, which caused a shortage of products in the domestic market. Freight charges in India were observed to fall in the regional market relieving the cost pressure from the product by the end of the last quarter.
Europe
In Q4 of 2022, the market value of Benzyl Chloride oscillated stably within the European region. On the other side, feedstock Toluene prices have significantly dropped in the Netherlands. The market emotions of the Toluene makers have been impacted by the fluctuating upstream Brent crude oil price. Additionally, the upstream Benzyl Chloride market's purchase was slow and did nothing to support the price realizations of Toluene. Benzyl Chloride was readily available on the spot, and traders were selling it at comparatively low prices by the end of the quarter. The inventories were moderate to high, which was sufficient to meet the downstream demand from the pharmaceuticals and dyestuff industry.
For the Quarter Ending September 2022
North America
Q3 of 2022 saw a fluctuation in prices of Benzyl Chloride in the North American region. The imports from Germany, Belgium, and Mexico to the United States of America varied per the region's supply situation. Supply was disrupted during the end of the quarter when hurricane Ian impacted the Florida region of the USA. The downstream demand for the paints and coatings industry declined, further decreasing the prices of the product. Meanwhile, freight charges on US West Coast and East Coast have declined sharply during the third quarter as the US demand dynamics plummeted owing to soft consumer sentiment.
APAC
The prices of Benzyl Chloride were observed to be falling in the Asian market during the third quarter of 2022. Declining demand from downstream dyes and pharmaceutical industries affected the market sentiments, decreasing the consumption of products in the region. Varying freight charges due to the ongoing war between Russia and Ukraine during the beginning of the quarter fluctuated the prices. Falling prices of upstream feedstock Toluene and Liquid Chlorine impacted the prices of downstream Benzyl Chloride. The supply to the region was more as there was an abundance of shipments available. The inventories in the market were surging with the traders and the suppliers during the period. Benzyl Chloride hovered at INR 118500/ton Benzyl Chloride CFR JNPT.
Europe
During the third quarter, the prices of Benzyl Chloride fell in the European market as demand from downstream plasticizers, drugs, and dyes intermediate fell with lower consumption in the region. Due to this, the inventories were rising with the traders and the suppliers, causing a stockpiling of the product in the European regional market. The European stocks slipped from highs after Russia's Gazprom had cut natural gas supply and other supplies to the EU, which caused an energy crisis and impacted production in the plants within the European region. The freight charges fell within the inland waterways in the European domestic market, removing the pressure from the prices of the product.
For the Quarter Ending June 2022
North America
The North American market saw a fluctuation in the prices of Benzyl Chloride during the second quarter of 2022. One of the leading market drivers is the expanding demand for benzyl chloride, which is used to make alcohol and is used in many other sectors. Throughout the quarter, the need for benzyl alcohol increased due to the paint and coating industry's global expansion and demand for the substance. The chemical is also used to make agrochemicals, so rising food consumption and rising disposable incomes globally promote market expansion. Additionally, benzyl chloride is commonly used in the plastics industry since it provides a range of physical properties that facilitate manufacturing, consequently promoting the market growth.
Asia
The prices of Benzyl Chloride surged in the Asian market during the second quarter of 2022 with a Quarterly inclination of 15.9%, as recorded by Chem Analyst pricing team data. Surging demand from downstream industries like dyes, plasticizers, drugs, lubricants, and cosmetics supported the Benzyl Chloride prices on an upward trajectory. Increasing costs of upstream feedstock Toluene and Liquid Chlorine pulled the prices upward. Supply in Toluene is scarce, and shippers keep prices low and are reluctant to sell. The majority of OPEC's oil-producing nations have surpassed their capacity limits, and the market supply is predicted to tighten. Increasing production became increasingly difficult in the aftermath, and international oil prices rose for three consecutive days.
Europe
Benzyl Chloride prices surged in the European region during the second quarter of 2022 with the surge in the prices of upstream feedstock Toluene and Chlorine. The rise in demand from the importing countries like the USA put cost pressure on the prices within the regional market. By indirectly supporting the global benzyl alcohol market, significant advancements in the benzyl alcohol and paint industries benefit the benzyl chloride market. The benzyl chloride industry was driven by improvements in the plastic sector and a wide range of skincare products and medications. In the forecast period, benzyl chloride demand was driven by rapid growth in developing countries, an increase in disposable income, and an increase in living standards.
For the Quarter Ending March 2022
North America
In North America, during the first quarter of 2022 the price of Benzyl Chloride increased to USD 4780/ton CFR Illinois by the end of March 2022. A price rise was imminent across basic upstream chemicals, chlorine-based chemicals, benzene value chains, toluene chains, and vegetable oils. As a result, prices across the speciality chemical value chain had skyrocketed. Logistic challenges and rising input costs have added short-term margin pressure for specialty chemical players and this rising cost was passed on the customers to maintain the margins of the industries. Domestic players are marred by the resurging issue of container shortage and increasing freight charges apart from the rising input cost.
Asia Pacific
During Q1, 2022 the price of Benzyl Chloride surged upwards in the Asian continent starting at a price of USD 1196/ton CFR JNPT in the beginning of the quarter in India. A decrease of 4.8% was seen in the first quarter of 2022 as compared to the last quarter. The demand from downstream increased due to its rising uses in dyes, pharmaceuticals and perfumes. The prices of raw material toluene across the chemical industry surged globally due to ongoing war between Russia and Ukraine which was the driving force for the prices surging the value chain of these speciality chemicals.
Europe
The price of Benzyl Chloride surged upwards and followed an increasing trajectory in the first quarter ranging around USD 3540/ton FOB Rotterdam in Netherlands in the middle of Q1, 2022. With Netherlands contributing up to 6% of worlds total toluene exporting, the country observed an increase in demand from downstream plasticizers, dyes and photographic developers. The price increase was necessary due to the steep rise in raw material costs and the supply-demand tightness experienced throughout Q1 and continued logistic issues pushed the prices of Benzyl Chloride much northward. The stocks and inventories of Benzyl Chloride manufacturers have decreased leading to insufficient supply and production of the speciality chemical escalating the prices.
