For the Quarter Ending September 2024
North America
In Q3 2024, the North American market for C10 Solvent experienced a notable decline in prices, primarily driven by limited demand across key end-user industries. The sluggish activity in sectors such as paints, coatings, and adhesives significantly impacted consumption levels. This reduction in demand created a challenging environment for manufacturers, leading to increased competition among suppliers eager to maintain market share.
Compounding the situation was the ample inventory of C10 Solvent available in the market. Many producers had built up stock in anticipation of higher demand, but the expected consumption failed to materialize. As a result, the surplus inventory contributed to downward pressure on prices, as suppliers were compelled to offer more competitive pricing to move excess stock. This oversupply situation further exacerbated the already weak market conditions.
By the end of the quarter, the prevailing sentiment in the North American C10 Solvent market reflected ongoing concerns about demand sustainability. The combination of limited consumption and high inventory levels not only facilitated a decline in prices but also underscored the need for manufacturers to reassess their production strategies in light of the shifting market dynamics.
APAC
In Q3 2024, the APAC region faced significant challenges in the C10 Solvent market, marked by a downward trend in pricing. This decline was driven by a confluence of factors, including bearish market sentiment, subdued demand from downstream sectors, and stable feedstock prices. These elements collectively pressured market prices lower, with Singapore experiencing the most pronounced fluctuations. Throughout the quarter, the offtake for C10 Solvent remained particularly low, especially within the paints and coatings industries, which are major consumers of the product. This weak demand resulted in a 2.5% decrease in prices compared to the previous quarter, further reflecting the broader market dynamics at play. Year-on-year comparisons painted an even more concerning picture, with prices for C10 Solvent dropping by 13% relative to the same quarter in the previous year. By the end of the quarter, C10 Solvent prices FOB Jurong in Singapore were recorded at USD 1010/MT, underscoring the prevailing negative sentiment in the market and highlighting the ongoing challenges faced by producers and suppliers in the region.
Europe
In Q3 2024, the European market for C10 Solvent encountered significant challenges, marked by a persistent decline in prices. This downward trend was primarily influenced by reduced demand from essential industries, with the paints and coatings sector experiencing notable slowdowns. The combination of weakening consumption and high production rates led to an excess supply situation, where efficient supply chains further facilitated the accumulation of stock. Anticipatory stocking in expectation of seasonal maintenance shutdowns added to this oversupply, resulting in intensified downward pressure on prices. Germany emerged as a key player within this landscape, experiencing the most pronounced price fluctuations, which reflected broader trends across Europe. Interestingly, despite the overall decline in C10 Solvent prices throughout the quarter, Germany saw a slight increase of 2% compared to the previous quarter. Year-on-year comparisons revealed a striking 35% increase in prices, illustrating the volatility within the market. By the quarter's end, C10 Solvent prices were recorded at USD 1362/MT FOB Hamburg, highlighting the complexities of the prevailing pricing environment and the factors contributing to the downward trajectory.
For the Quarter Ending June 2024
North America
In Q2 2024, the North American C10 Solvent market experienced significant price fluctuations due to several key factors. Prices for C10 Solvent increased this quarter, driven by higher production costs, robust demand from the construction sector, and ongoing global geopolitical tensions.
Elevated crude oil prices raised production costs, pushing market prices higher. Additionally, challenges in the global freight industry, such as rising freight rates and shipping delays, further increased the costs of importing raw materials and finished products. In the USA, the market saw the most notable price changes, reflecting strong demand across various sectors, including construction.
Despite a decrease in C10 Solvent prices compared to the same quarter last year, there was a modest rise from the previous quarter of 2024, indicating a recovery phase. A slight increase was observed between the first and second halves of the quarter. Overall, despite rising production costs and fluctuating demand, the market sentiment remained positive, fostering a stable and cautiously optimistic pricing environment.
APAC
In Q2 2024, the pricing environment for C10 Solvent in the APAC region has demonstrated a consistent upward trajectory. This quarter has seen significant factors influencing market prices, particularly the increased cost of feedstock crude oil, which has escalated production costs. The heightened demand from the downstream construction and paints and coatings industries, spurred by seasonal factors, has also propelled prices upward. Supply chain disruptions, including logistical challenges and high freight rates, have further exacerbated the supply constraints. OPEC+ production cuts and geopolitical uncertainties in critical shipping routes have compounded these challenges, adding to the bullish price trend. Focusing exclusively on South Korea, the country has experienced the most notable price changes in the APAC region. The overall trend has been bullish, driven by a surge in demand from the automotive and construction sectors. Seasonal factors, such as increased construction activity during the warmer months, have further amplified this demand. Correlation in price changes reflects the broader regional dynamics, with South Korea's market closely mirroring the tight supply and high demand seen across APAC. Comparing the first and second halves of the quarter, a marginal price increase of 1% underscores the steady upward momentum. The percentage change from the previous quarter in 2024 is recorded at 5%, indicating a positive pricing environment. The latest quarter-ending price for C10 Solvent FOB Busan stands at USD 1041/MT, reflecting a stable and increasingly bullish market sentiment. Despite the disruptions and supply chain constraints, the market has navigated these challenges, resulting in a progressively positive pricing environment for C10 Solvent in South Korea. This quarter has been marked by resilience and sustained demand, underscoring the robust market dynamics at play.
Europe
In Q2 2024, the European market for C10 Solvent observed a significant uptrend in pricing, driven by various factors. The quarter was marked by heightened production costs, primarily due to a consistent rise in feedstock crude oil prices and elevated global freight rates. Moreover, the downstream construction sector exhibited robust demand, contributing further to the bullish pricing environment. The chemical industry's reliance on stable supply chains was tested by logistical disruptions, which exacerbated the cost pressures. Despite these challenges, supply chains remained moderately stable, although constrained by higher import costs and delayed shipments. In Germany, the impact was most pronounced, with C10 Solvent prices reflecting a marked increase. The German market experienced significant seasonal fluctuations, with the summer months boosting demand from both the construction and automobile sectors. This seasonality, coupled with underlying economic improvements, contributed to a consistent upward trend in pricing. Observing a 15% price rise from the previous quarter, the German market demonstrated resilience amid a bullish sentiment. The comparison between the first and second halves of the quarter indicated an 8% price escalation, underscoring the persistent demand and constrained supply dynamics. The quarter concluded with C10 Solvent prices standing at USD 1436/MT FOB Hamburg, Germany. This positive pricing environment underscores the significant influence of external factors such as crude oil prices and freight rates on the C10 Solvent market in Europe. The absence of major plant shutdowns further buttressed the stable supply, despite the ongoing logistical challenges. Overall, the European C10 Solvent market in Q2 2024 exhibited a robust and bullish trend, driven by substantial cost pressures and strong downstream demand.
For the Quarter Ending March 2024
North America
Throughout the first quarter of 2024, the price of C10 Solvent exhibited an overall bearish trend in the North American market. During this period, the US market experienced a significant price decline for C10 Solvent, largely due to increased imports from overseas offering more competitive pricing.
Additionally, demand from the downstream Paints and Coating industry weakened following the festive seasons. The domestic market maintained ample product supply, including inventories at ports. This surplus, combined with subdued demand in the downstream sector and heightened selling pressures, contributed to the market's bearish trajectory. Towards the end of the quarter, the normalization of the Red Sea crises, declining freight rates, and improved product supply further supported the bearish trend in the US C10 Solvent market. Notably, the construction industry saw positive growth, with annual statistics revealing a 14% increase in completed houses compared to February 2023.
Real estate developers remained active, evidenced by an 11.3% rise in newly constructed houses listed in February 2024. In summary, the first quarter of 2024 witnessed a downward price trend for C10 Solvent in the North American market, driven by increased imports, weakened demand in the paints and coatings sector, and favourable developments in the construction industry towards the quarter's end.
APAC
The Q1 2024 pricing environment for C10 Solvent in the APAC region has been largely stable, with some fluctuations in specific countries. Various factors influenced market prices during this quarter. One significant factor was the cost of feedstock Crude Oil, which had a direct impact on C10 Solvent pricing. The price of Crude Oil experienced fluctuations, driven by factors such as increased production in certain countries and concerns about oversupply. These fluctuations in Crude Oil prices had a ripple effect on C10 Solvent prices. South Korea, in particular, experienced the maximum price changes during this quarter. The market in South Korea witnessed a rise in C10 Solvent prices in February, influenced by the upward trajectory of Crude Oil prices. However, prices declined in subsequent months due to abundant availability of the product and off-demand winter season. The South Korean market also saw a temporary slowdown in manufacturing activity during the Lunar New Year festivals, affecting overall industrial output. Overall, the pricing trend for C10 Solvent in the APAC region during Q1 2024 has been bearish, with low to moderate supply and low demand. Market sentiment was influenced by factors such as the Red Sea crises, the Chinese Lunar New Year, and seasonal factors. The price of feedstock Crude Oil played a significant role in shaping pricing trends. The latest quarter-ending price for C10 Solvent in South Korea was USD 1000/MT FOB Busan. Despite fluctuations throughout the quarter, the pricing environment has been relatively stable, with prices ending at a similar level to the beginning of the quarter.
Europe
In Q1 2024, the European market for C10 Solvent experienced a relatively stable pricing environment. Demand and supply levels remained closely matched, resulting in minimal fluctuations in prices. The cost of feedstock Crude Oil, a key factor influencing C10 Solvent prices, rose by approximately 5% during the quarter. Initially, product prices surged due to limited availability, but as the Red Sea crisis eased and freight rates dropped, prices stabilized. Germany, a key market in the region, saw the maximum price changes. Demand from downstream industries, such as paints and coatings, remained consistent throughout the quarter. However, the overall demand from the end-use construction sector remained low. Despite signs of stabilization in the euro area economy, total output volumes saw a marginal decline for the ninth consecutive month, albeit at a slower rate compared to previous months. In terms of seasonality, the winter holiday period had a noticeable impact on consumer behaviour and overall product demand. The traditional winter festivities led to a decrease in purchasing activity, contributing to a subdued demand for C10 Solvent. Looking at price trends within the quarter, prices remained relatively stable with only minor fluctuations. There was a slight increase in prices in February, followed by a slight decrease in March. Overall, the pricing environment can be considered stable, with no significant negative or positive trends observed. The quarter-ending price for C10 Solvent FOB Hamburg in Germany was USD 1230/MT. This reflects the stability in prices throughout the quarter and the balanced market conditions.
For the Quarter Ending December 2023
North America
During the last quarter of 2023, the C10 Solvent market in North America witnessed a decline in prices. The foremost factor contributing to this trend was a decrease in demand, primarily attributable to challenges within the construction industry, leading to diminished buying interest among end-users.
Furthermore, the supply of C10 Solvent remained consistently high throughout the quarter, as manufacturers proactively produced the product in anticipation of future demand. However, the abundant availability of the product in the market exerted downward pressure on pricing. The United States, being the focal point of this analysis, witnessed a substantial downturn in C10 Solvent prices during the quarter. Specifically, the price of C10 Solvent in the USA decrease compared to the previous quarter. This decline was predominantly driven by the confluence of low demand and ample supply in the market. Additionally, the year-on-year comparison reflected a decrease in prices for the same quarter of the previous year.
The prevailing pricing trend in the USA during this quarter was profoundly influenced by the aforementioned factors, collectively contributing to a bearish market sentiment. In summary, the market dynamics for C10 Solvent in North America during the fourth quarter of 2023 were predominantly shaped by low demand, ample supply, and a discernible downward pricing trend in the USA.
APAC
In the fourth quarter of 2023, C10 Solvent market experienced a bearish trend in the APAC region. The top three factors that impacted the market were the decline in global crude oil prices, low demand from the downstream industries, and improved supply levels. The global crude oil prices experienced a steep fall, leading to a decrease in the prices of C10 Solvent. Furthermore, the low demand from the domestic and international markets exceeded the available supply. There were no reported plant shutdowns during this period. In South Korea, which experienced the most significant changes in C10 Solvent prices, the market trend was bearish. The supply of the product remained moderate, while the demand was low. The pricing dynamics of the product were primarily driven by the easing production costs. The Consumer Price Index in South Korea increased by 0.6% from the preceding month, indicating that consumers were more willing to accept higher prices for goods and services. The price of C10 Solvent in South Korea at the end of the fourth quarter was USD 1015/MT FOB Busan. This represents a 9% increase compared to the previous quarter and a 7% decrease in price when comparing the first and second halves of the quarter. The price change from the same quarter of the previous year was not mentioned. Overall, the market conditions and factors such as global crude oil prices and demand levels had a significant impact on the pricing of C10 Solvent in the APAC region during the fourth quarter of 2023.
Europe
Throughout the fourth quarter of 2023, the C10 Solvent market in the European region displayed a downward or bearish trend due to low margins and high inflation, leading to pressure on the market. Despite moderate to low consumption, traders raised their offers to improve margins, while upstream prices declined. The demand for Crude oil did not improve as anticipated. Germany experienced a significant rise in C10 solvent prices due to high production costs and inflationary pressure, with demand partially improving from the domestic market. No plant shutdowns were reported in Germany during this period. The price trend in Germany may be influenced by expected hikes in upstream costs, changes in demand due to destocking practices, and improvements in regular buyer queries. Upstream costs and the rise in crude oil prices may support the price trend. In September 2023, C10 Solvent prices in Germany increased by 28.1% compared to the previous month, driven by the surging value of crude oil. The latest price for C10 Solvent FOB Hamburg in Germany for the current quarter is USD 1170/MT.
