For the Quarter Ending September 2024
North America
In Q3 2024, Nitro Chlorobenzene (NCB) prices in North America displayed a mixed pattern, driven by solid demand from the pharmaceutical and agrochemical sectors. The upward pressure on prices was primarily influenced by rising raw material costs, particularly for benzene and chlorine, due to geopolitical tensions and ongoing supply chain disruptions. These factors contributed to price increases across the region throughout the quarter.
Despite this, the market faced significant challenges, including an oversupply in some segments and competitive pricing strategies from key suppliers, which moderated the overall price growth. Para-NCB, in particular, showed a positive year-on-year price trend, although prices peaked in early September before experiencing a slight decline by the end of the quarter.
Overall, North America's NCB market remained resilient, with stable demand driving recovery and maintaining a positive pricing sentiment. While short-term fluctuations occurred, prices remained higher than in the same period the previous year, reflecting the ongoing recovery and strong market fundamentals that shaped the quarter’s outcome.
APAC
In Q3 2024, Nitro Chlorobenzene (NCB) experienced a mixed trend in prices across the APAC region, primarily driven by heightened demand in the pharmaceutical and agrochemical sectors. Several key factors influenced these market price hikes, including increased raw material costs, particularly those of benzene and chlorine, stemming from geopolitical tensions and supply chain disruptions. Additionally, seasonal demand upticks due to monsoon intensified the price escalation. Despite these upward pressures, the market faced challenges such as oversupply in certain segments and aggressive pricing strategies by Chinese suppliers, which moderated the overall price rise.
Focusing on Japan, which saw the most significant price changes, the overall pricing trend for para-NCB has been mixed. The price assessed at the end of the quarter remained 13% higher than the price assessed last year indicating year-on-year growth in Nitro chlorobenzene prices, especially in p-Nitro chlorobenzene, however the prices began their recovery in second quarter from the price of EXW Qingdao assessed around USD 1100/MT on 29th September 2024. The prices dropped by 1% cumulatively in Q3 2024.
The pricing data show that prices peaked in early September of Q3 2024. Concluding the quarter, the price of p-Nitro Chlorobenzene in EXW Osaka USD 1130/MT. This quarter's pricing environment has been predominantly positive, marked by recovery and strong demand dynamics, despite some offsetting factors, establishing a stable yet ascendant market sentiment.
Europe
In Q3 2024, Nitro Chlorobenzene (NCB) prices in Europe exhibited a mixed trend, influenced by a combination of strong demand and external market factors. The pharmaceutical and agrochemical sectors continued to drive demand, contributing to upward pressure on prices. Additionally, raw material costs, particularly for benzene and chlorine, remained elevated due to geopolitical tensions and persistent supply chain disruptions. These factors played a significant role in pushing prices higher throughout the quarter. However, the market also faced notable challenges. An oversupply in certain segments, along with aggressive pricing strategies by some key suppliers, created downward pressure that tempered the overall price increase. Despite these headwinds, the pricing trend for para-NCB remained positive year-on-year. Prices, which had peaked in early September, showed signs of stabilization towards the end of Q3 2024, with a slight cumulative decline. Nevertheless, the overall pricing environment in Europe remained favorable. Strong demand fundamentals, coupled with recovering market conditions, ensured that the quarter ended on a positive note, with prices higher than the previous year's levels, despite short-term fluctuations.
For the Quarter Ending June 2024
North America
The North American Nitro Chlorobenzene market exhibited a mixed pricing structure in Q2 2024, influenced by a confluence of countervailing factors. While a decrease in feedstock costs, particularly Benzene, initially exerted downward pressure on Nitro chlorobenzene pricing, a concurrent rise in sulfuric acid costs, attributable to geopolitical tensions, counterbalanced this effect. Further exacerbating price volatility were supply constraints arising from production facility shutdowns. Geopolitical uncertainties and the impending hurricane season compounded these supply chain disruptions, intensifying cost pressures. Additionally, downstream industries, such as pharmaceuticals and agrochemical producers, engaged in significant forward buying and inventory accumulation in response to elevated crude and natural gas prices, further impacting market dynamics.
Focusing on the United States, which witnessed the most pronounced price fluctuations, the overall Nitro chlorobenzene pricing trajectory demonstrated a bimodal distribution. The first half of the quarter remained relatively stable, followed by a pronounced upward trend in the latter half. Seasonal factors, such as the surge in demand associated with Memorial Day, coupled with strategic stockpiling activities, contributed to this bullish price movement.
In conclusion, the prevailing pricing environment for Nitro chlorobenzene has been largely positive, driven by robust demand, constrained supply, and escalating feedstock costs. These factors collectively contribute to an increasingly optimistic market sentiment, characterized by expectations of continued price increase.
APAC
In Q2 2024, Nitro Chlorobenzene (NCB) experienced a mixed trend in prices across the APAC region, primarily driven by heightened demand in the pharmaceutical and agrochemical sectors. Several key factors influenced these market price hikes, including increased raw material costs, particularly those of benzene and chlorine, stemming from geopolitical tensions and supply chain disruptions. Additionally, seasonal demand upticks due to pre-monsoon stocking intensified the price escalation. Despite these upward pressures, the market faced challenges such as oversupply in certain segments and aggressive pricing strategies by Chinese suppliers, which moderated the overall price rise. Focusing on Japan, which saw the most significant price changes, the overall pricing trend for para-NCB has been mixed. The correlation between increased demand for agrochemical intermediates and pharmaceutical applications, alongside the country’s strategic pre-monsoon inventory build-up, was evident in the first half of the quarter. From the beginning of the year, the prices fell by 6.7%, reflecting a deflationary trend, however the prices began their recovery in second quarter from the price of FOB Osaka assessed around USD 1070/MT, in the first week of April 2024. The pricing data show that prices surged at faster pace in the first half over the second half of Q2 2024. Concluding the quarter, the price of p-Nitro Chlorobenzene -FOB Osaka in Japan stood at USD 1190/MT. This quarter's pricing environment has been predominantly positive, marked by recovery and strong demand dynamics, despite some offsetting factors, establishing a stable yet ascendant market sentiment.
Europe
The European Nitro chlorobenzene market experienced significant price fluctuations throughout Q2 2024, influenced by a complex interplay of opposing forces. Initially, a decline in feedstock costs, particularly Benzene, exerted downward pressure on Nitro chlorobenzene prices. Further complicating the market dynamics were supply constraints stemming from production facility shutdowns. Geopolitical uncertainties and the anticipation of extended warm season exacerbated these supply chain disruptions, leading to intensified cost pressures. Additionally, downstream industries, particularly agrochemicals and pharmaceutical producers, engaged in substantial forward buying and inventory accumulation in response to rising crude oil and natural gas prices. This strategic behavior further impacted market stability. Europe, in particular, witnessed the most pronounced price variations. The overall pricing trajectory exhibited a bimodal distribution, with relative stability characterizing the first half of the quarter followed by a sharp upward trend in the latter half. This bullish price movement was driven by a confluence of factors. Firstly, seasonal factors, such as the surge in demand associated with the recovery in construction and automotive sectors, played a role. The increasing focus on sustainability within these industries, coupled with the higher demand for pharmaceuticals and de-coupling from Chinese imports contributed to this demand surge. Secondly, strategic stockpiling activities by market participants further fueled the upward price movement. In conclusion, the dominant sentiment surrounding Nitro chlorobenzene pricing in Europe remains largely positive. This optimism stems from a combination of factors, including robust demand across various sectors, constrained supply due to production issues and geopolitical uncertainties, and escalating feedstock costs. These elements collectively contribute to an increasingly bullish market outlook, with expectations of continued price increases in the foreseeable future.
For the Quarter Ending March 2024
North America
North American relies heavily on imports for Para-Nitro chlorobenzene, with Japan and Korea being the main suppliers. The decline in S-Metolachlor usage led to a plunge in new orders for Para-Nitro chlorobenzene, resulting in excess inventory. Additionally, new energy supply contracts starting in January offered lower premiums due to relatively low gas prices and high gas inventories.
In the first quarter of 2024, Para-Nitro chlorobenzene prices in North American dropped significantly due to impending bans on S-Metolachlor, a weedkiller that uses Para-Nitro chlorobenzene as a raw material. Data of USA, shows a steep decline in prices starting from January. This coincided with an 8% increase in benzene supply contracts compared to the previous quarter. Spot prices for benzene also recovered in February as industrial production picked up with rising temperatures.
Despite the overall bearish trend, there are some signs of recovery. Demand for Para-Nitro chlorobenzene in North American dye production is increasing as energy costs ease. US saw an improvement in Benzene supply in the first half of the quarter but tightening in the second half, but domestic demand within US remained weak. Overall, Para-Nitro chlorobenzene prices continued to decline after a weak fourth quarter in FY23-24. This was driven by inventory adjustments, subdued consumption due to high interest rates, and discounted markets in USA and Mexico. However, demand for dyes and other chemicals that use Para-Nitro chlorobenzene remains lower than historical averages, and new orders have fallen considerably.
Europe
Prices of Para-Nitro chlorobenzene in Europe turned bearish in the first quarter of FY24-25 owing to further bans on S-Metolachlor approaching. Pricing insights and data from Germany reveals significant decline in prices were observed from January as benzene supply contracts turn higher by 8% Q-o-Q basis with spot prices recovering after downturns in the industrial production eased by February as temperatures rose.
Supply of Para-Nitro chlorobenzene largely remain imported into European markets with Japan, Korea. Downturns in agrochemical production intensified with newer orders for Nitro chlorobenzene in Europe plunging as inventory pressure enlarged. Newer contracts for energy supply beginning January 2024 show significant reduction in premiums offered as gas prices remained relatively lower than historical averages in the spot markets as gas inventories remained on the higher end. Nitro chlorobenzene demand for dyes and other dyestuff production in Europe is showing recovery with easing energy cost, imports of Benzene from Netherlands and Belgium improved in Germany, though German domestic demand remained subdued.
Overall, Prices showed continued subduction after weak Q4FY23-24, inventory adjustments and subdued consumption due to higher interest rates. With England leading a strong discounted market for consumption, Netherlands, Italy and France followed the suit and stimulated their domestic consumption, though downturns and demand for dyes chemicals like nitro chlorobenzene remained lower than historical averages, pending orders have declined significantly.
Asia Pacific
The first quarter of 2024 has been bullish for Para-Nitro chlorobenzene pricing in the APAC region. Market prices have seen a significant decline, with a 14% drop compared to the same quarter last year, and by the end of the quarter, price stabilized. Japan has experienced the most notable price changes in the region. Overall trends in the Japanese market have been influenced by seasonality and other factors including Lunar New year festivities and Noto Earthquake supply line disruption. The price change from the previous quarter reflects that the quarter end bearish sentiment offset the February slump in prices. Compared to the YoY basis, prices remained 10% lower due to significant deflation in agrochemical markets.
The latest quarter-ending price for Para-Nitro chlorobenzene in Japan was recorded at USD 1160/MT FOB Qingdao. This price indicates a stabilization in price movements with the arrest of price decline, as it marks a significant increase due to quarter end bearish run observed across the Japanese market, with prices of chlorobenzene contracts remained significantly lower due to low Para-Nitro chlorobenzene prices, which Asian suppliers in East Asia decided to stay away from contracts and undertake spot procurements leading to significant downturns and frequent revisions in Nitro chlorobenzene prices.
In summary, the first quarter of 2024 has been a period of bearish sentiments for Para-Nitro chlorobenzene in the APAC region. Japan has experienced the most significant price changes, with a negative pricing environment overall triumphing the slump observed in the Late February and early March. The market has been influenced by seasonality and other factors, leading to stable pricing trends.
For the Quarter Ending December 2023
North America
Prices of Nitro chlorobenzene showed bullish sentiment in Q4FY23 with respect to para-nitro chlorobenzene. Feedstock Benzene largely provided negative cost coupled with weak energy prices in the given quarter amidst excellent US domestic crude and gas production.
Supply largely remained import dominated with the downstream dyes and pigment industry showing signs of recovery amidst improvement in consumer sentiments and stable demand from automotive industries. Agrochemical demand remained stable, gradually slowing down throughout the quarter largely owing to excellent cropping season. In the month of October, US consumer sales registered strong growth amidst pent-up demand and falling mortgage and inflation rates which remained resilient while weakening little in the month of December. Dyes market showed improvement largely driving the nitro chlorobenzene prices.
Construction chemical markets are showing gradual signs of recovery with improving purchases for Nitro chlorobenzene derivatives, although the effect on prices remained weak. Automotive and Polymer markets remained other major drivers for para-nitro chlorobenzene derivatives volume apart from apparels to show increased orders. Chinese and Korean markets continued to be the largest suppliers of Nitro chlorobenzene to North American markets Festivities and pent-up demand coupled with previous quarters delivery made the nitro chlorobenzene market strong in the current quarter. By the end of the quarter, prices started stabilizing amidst falling newer orders due to high CIF and CFR charges due to container and shipping shortages largely due to Panama and Suez Crisis.
Asia Pacific
Prices of Nitro chlorobenzene showed bullish sentiment in Q4FY23 with respect to para-nitro chlorobenzene. Feedstock prices continued to support positive cash flow to the suppliers. Supply largely remained domestic with the downstream dyes and pigment industry showing signs of recovery amidst improvement in manufacturing in the downstream markets with China leading the region. Agrochemical demand remained stable, gradually slowing down throughout the quarter largely owing to excellent cropping season. Dyes market showed improvement largely driving the nitro chlorobenzene prices. Construction chemical markets are showing gradual signs of recovery with improving purchases for Nitro chlorobenzene derivatives, although the effect on prices remained weak. Automotive and Polymer markets remained other major drivers for para-nitro chlorobenzene derivatives volume apart from apparels to show increased orders. Chinese and Korean markets continued to be the largest suppliers of Nitro chlorobenzene to North American markets. Domestic demand in China and Korean markets remained subdued largely owing to financial debts and real estate challenges. With Chinese government continuing to provide stimulus, demand for Nitro chlorobenzene from construction and consumer markets in domestic territory is showing signs of recoveries. Lunar New Year festivities in the coming February is currently guiding significant rise in procurement from textiles, apparel markets for nitro chlorobenzene derivatives and increased wages in Korean markets are currently major drivers for dyes, pigments demand from automotive markets. By the end of the quarter, prices started stabilizing amidst falling newer orders due to high CIF and CFR charges due to container and shipping shortages largely due to Panama and Suez Crisis.
Europe
Prices of Nitro chlorobenzene showed bearish sentiment in Q4FY23 with respect to para-nitro chlorobenzene. Feedstock Benzene largely provided negative cost coupled with weak energy prices in the given quarter amidst excellent US domestic crude and gas production despite OPEC+ supply cuts. Supply largely remained import dominated with the downstream dyes and pigment industry remaining subdued with falling demand from automotive industries. Agrochemical demand remained stable, gradually slowing down throughout the quarter largely owing to excellent cropping season. Eurozone continues to face demand slump amidst high interest rates, although consumer demand for nitro chlorobenzene derived dyes markets showed uptick in Italian and Dutch markets largely owing to stable inflation. Dyes market showed improvement largely driving the nitro chlorobenzene prices. Construction chemical markets are showing gradual signs of recovery with improving purchases for Nitro chlorobenzene derivatives, although the effect on prices remained weak. Automotive and Polymer markets remained other major drivers for para-nitro chlorobenzene derivatives volumes. Chinese and Korean markets continued to be the largest suppliers of Nitro chlorobenzene to North American markets Festivities and pent-up demand coupled with previous quarters delivery made the nitro chlorobenzene market strong in the current quarter. By the end of the quarter, prices started stabilizing amidst falling newer orders due to high CIF and CFR charges due to container and shipping shortages largely due to Panama and Suez Crisis.
