ChemAnalyst

Ammonia prices in China have consistently risen because of ongoing supply chain issues, weather-related disruptions, and higher shipping container costs, all of which are likely to lead to shortages and fuel fertiliser prices. In recent months, Russia has also implemented temporary export curbs and fertiliser prohibitions. Farmers' profit margins are being eroded by rising fertiliser costs, resulting in increased prices for downstream customers. As a result, FOB-Qingdao offers for Aqueous Ammonia in China have been quoted at USD 805 per metric tonne during the last week of February. In the Chinese market, there have been some recovery from downstream demand following the spring festival which further took prices on a higher note coupled by a sharp rise in Natural gas prices, which is used to produce most nitrogen fertilisers such as Ammonia, has been primarily responsible for the price increase. Russia is a key global supplier of fertiliser and related raw resources such as sulp...

In this week, the prices of Styrene Monomer (SM) slipped to $1340/ton Spot Ex-Tianjin and $1230/ton CFR Shanghai with week-on-week declination of 0.44% and 1.6% respectively. Feedstock Benzene prices were also ended with weaker note in China and demand remained sluggish. The prices of Benzene in China were observed to be $1075/ton CFR Shanghai. Domestic styrene monomer (SM) costs dropped down this week in the face of milder futures as crude values were fluctuating downwards. Inventories at ports in east China expanded further but the growth was at a slower pace. In the meantime, somewhere around 60,000 tons of cargoes will be sent out in February-March, which is also expected to haul down the stock level later. It needs monitoring whether some independent makers will either carry out functional reductions or turnarounds out of plan in view of widening losses in production. FOB Korea Benzene was observed to be steady with $1039/ton. Weaker buying sentiments for feedstock from Styrene m...

Last year heard to be depressing for oxo alcohol manufacturers, as despite of firm offtakes from the domestic market, ample availability led to consistent and steep decline in prices of all Oxo Alcohols . Major players like Andhra Petrochem and BPCL (Bharat Petroleum Corp) heard revising their offers to sustain offtakes. As per the ChemAnalyst data, a sharp rebound in price of oxo alcohols has been observed since January, which has risen by around 3.8%, 10% and 24% for n-Butanol, Iso-butanol and 2-Ethylhexanol respectively. Rising crude oil value has been a matter of concern for all the domestic as well as international oxo alcohol manufacturers since past few weeks, which has been pushing up the prices of most of the commodities in domestic as well as international market. Meanwhile, demand fundamentals for the product have also improved in the domestic market due to firm offtakes from downstream paints and coating sector. However, comparatively n-Butanol prices have shown less impro...

In China, the General-purpose grade prices of Poly Methyl Methacrylate were observed to be hovering in the range of $2010/ton CFR Shanghai-$2250/ton CFR Shanghai with month-on-month declination of 0.7%. Feedstock Methyl Methacrylate (MMA) in China were also observed to be hovering around $1892/ton-$2049/ton DEL. In China, the prices remained soft to stable due to deterred market and saturation of the product in the regional market. Most buyers retreated to the sideline for wait and see and are only buying for need to basis. However, the acetone costs increase recently pushed ACH process costs higher and limited Methyl Meth Acrylate supply since the most Methyl Meth Acrylate makers cut production rate. Furthermore, the market was for the most part muffled as impacted by the series of logistics limitations in the midst of the spread of Omicron since December, and the ensuing spread to Shanghai, Beijing, Guangxi, Tianjin, Henan, Chongqing regions. China government confined transportati...

In this week, the prices of Ethylene Dichloride in India remained stable on the upper end with the price trend of $1079/ton Ex-Chennai and $1057/ton Ex-Kandla. Crude oil and energy prices slipped in the global market where the prices slipped by $1.84 settling at $92.97 per barrel, while WTI futures plunged by $1.90 settling at $91.76 per barrel. Despite the weak energy and crude prices in India, the prices of Ethylene were observed to be stable. Demand trends were reported to be weak in the region and sufficient product availability. Ethylene Dichloride prices in India were also observed to be steady as the market was sufficient with the inventories and necessity for new purchasing of stocks were moderate. Reliance Industries Limited (RIL) had also rolled over the prices of downstream PVC prices in the domestic market. The stable buying momentum along with recent slipping of crude resulted in such trajectory. Domestic producers of India want no change in the import duty on PVC as wit...

Soda Ash prices in China have remained on a stable to narrow range since the beginning of February. Consumption of Soda Ash in China mainly comes from construction and photovoltaic segments. Limited activities in the construction sector and fluctuating demand for photovoltaics have been the major factors responsible for the dull offtakes of Soda Ash in the domestic market. The demand supply gap of Soda Ash is deemed nearly stable. Currently, buyers have been witnessed purchasing Soda Ash on need basis . Prices of Soda Ash were assessed marginally up by nearly 1% in the week ending 18 th January. As per ChemAnalyst , “A significant revival in Soda Ash prices cannot be expected in the near term. However, gradual recovery is likely to be witnessed following the likelihood of normalcy in construction activities coupled with the promotion of photovoltaics.”  Despite of the dull demand, Soda Ash weekly output in China has increased by 0.20% since late-January on weak-on-weak basis. ...

In this month, the price of Methyl Methacrylate in Asia remained weak where the contract prices were hovering around $1750/ton-$1830/ton and spot prices were observed to be $1900/ton-$2000/ton.  The general purpose (GP) PMMA price is in the range of $2,000-2,250/MT CFR Southeast Asia. China PMMA prices continued to be under downward pressure. PMMA price is in the range of $2207/ton-$2365/ton pmt DEL, depending on the origin and end-use. The feeble market of Methyl Methacrylate was driven by the downward pressure of numerous downstream customers closing down from middle January for the Lunar New Year occasion, and the sceptical economy viewpoint because of the Covid-19 new variation - Omicron pandemic crisis. On the supply side, recently several Methyl Methacrylate plants in China either reduced creation rate or scale back the production as arranged due to transportation limitation as a component of the preparation for the Beijing Winter Olympics in February. Subsequently it's hear...

European markets have been observing consistent downtrend in Ethylene Propylene Diene Monomer (EPDM) rubber market dynamics owing to stagnant demand pattern from downstream industries. EPDM rubber market have deteriorated since the beginning of the quarter in lieu of strengthening supply fundamentals and rising inventory levels. EPDM rubber prices assessed on 2 nd week of February and were placed at USD 3750 per MT on FOB basis. Prices have declined by more than 9.3% since the conclusion of Q4 2021.          Stagnancy in automotive industry continue to plague several upstream industries including tire industry. Global chip shortage has been persistent in the last few quarters and that has culminated in stagnant production levels worldwide. Consequently, demand of Original Equipment (OE) tires has also been severely and this in turn has resulted in stabilization in tire production levels. Tire industry has been heavily reliant on replacement tire consumption...

In India, the prices of Formaldehyde were observed to be stabilized as the prices of raw material Methanol is dropping down. The Methanol prices in India was slipped to INR 32000/ton Ex-Mumbai. However, the price of Natural Gas in India stabilized to upper end with INR 296700 per 1000 MMBtu Ex-Hazira. Shares of a few chemical manufacturers responded to the Union Budget 2022's proposed decrease in custom obligation on critical chemicals. Stocks of companies that utilize the critical chemicals as raw material flooded, while organizations that produce the chemical compounds saw a decline. The chemicals that will see an obligation decrease incorporate methanol, acidic acid and weighty feed stocks for oil refining. The stocks of organizations that use the chemicals as a raw material and subsequently, are probably going to profit from the duty cut acquired, while producers of the chemicals fell. Gujarat Narmada Valley Fertilizers and Chemicals Ltd. fell over 3%, the steepest intraday d...

Prices of various petrochemical products have registered a continuous climb following a sudden surge in the manufacturing cost of the product. Even though the supply issue has gradually eased across the globe, rise in prices of upstream crude has fairly contributed to the upswing in the prices. Phenol prices in India witnessed a significant rise by 2.5%, on 11 th February. Prices turned firm due to the appreciable rise in upstream crude values which surged to USD 95 per barrel on Friday. In addition, marginal reduction in the deliveries from China due to several curbs and market closures on account of lunar holidays has also made players anxious over the availability of material at times of prevalent demand pattern. Indian manufacturers were heard operating their plants at optimum level to cater sufficiently to the domestic demand. Several traders were offered cargoes at high premium, due to sudden rise in manufacturing cost in the past few weeks. High global demand and immense geo...

Paraxylene prices have continue their rally upwards in USA, consolidating on strong crude oil market sentiment. Paraxylene market started the year on a firm note and has been gaining further inroads into February 2022. In recent assessments, Paraxylene prices in USA has crossed USD 1100 per MT and were assessed on USD 1105 per MT on FOB basis. Fate of crude oil and aromatics has been intertwined since long and recent developments have vindicated the above statement. Continuous climb in crude oil prices have resulted in strong cost pressure and culminated in refiners opting for robust prices for aromatics. Consequently, Paraxylene prices have consistently gained in last few weeks. Crude oil prices have climbed significantly since the beginning of the year and both ICE Brent and WTI crude were traded in excess of USD 90 per barrel in February. Paraxylene forms a key component in Polyethylene Terephthalate (PET) value chain where Paraxylene acts as critical upstream for feedstock Puri...

Because of a paucity of supplies, Nitric Acid costs in South Korea have been continuously climbing since January. According to ChemAnalyst 's database, the average price of domestic concentrated Nitric Acid 98% FOB Busan in January was USD 235/MT. South Korea controls a significant portion of the global Nitric Acid market, accounting for 21%. On the back of growing input costs and rising inflation, Nitric Acid purchases in the domestic and foreign market began to see a significant increase in pricing and downstream derivatives in February. At the start of the month, the upstream liquid Ammonia market was mostly steady. Manufacturing activity increased in the export powerhouses of South Korea, despite supply chain disruptions and raw material shortages driving up costs. South Korean consumer prices increased 3.6 percent year over year in January 2022. As increasing costs of oil and other raw materials, as well as agricultural items, continued to add to inflationary pressure. Inflati...

The domestic Urea market remained stable after Lunar New Year's Day. In comparison to the beginning of the year, the average market price of domestic Urea appeared to be flat as of February 4th. Urea FOB Qingdao prices for the 4th of February 2022 have settled at USD 475 per metric tonne, up 9% month over month. During the holidays, partial lockdowns in select areas will have a negative impact on economic activity. Urea has stopped rising and stabilised since late January, and the market has thus remained constant. The demand for fertilizer has shifted to the off-season, and Urea factories aren't confident enough to support the price. Furthermore, the upstream price's support effect is limited. Urea supply difficulties in China have persisted, pushing offers above USD419/MT during last few months. Natural gas, a key heating fuel for northern China, remained in ample supply as domestic fields pumped at top rates and importers maintained high inventories. Demand from residen...

Recently, rubber grade Silica prices were observed to be rising across Indian market, which has started concerning downstream end users. As per ChemAnalyst sources, rising raw material cost has remained a prime factor behind this consistent rise in prices of Silica, despite modest to stable offtakes from the domestic downstream rubber industry. However, since the first week of January, demand fundamentals for Silica remained firm in India, as economic activities started again at a normal pace after showing marginal dullness during December. As per market sources, price of two major raw materials i.e., Soda Ash and Sulphuric Acid has been rising since October on the back of high demand and inflationary pressure hovering in the global market. It was observed that Soda Ash price has risen by around 50% within past six months in India, while Sulphuric Acid price has almost doubled during past 4-5 months in the domestic market. There were different reasons responsible for these augmente...

Austrian chemical organization Borealis has gotten an offered for its manure business from Russia-based Eurochem, with the two organizations anticipating that an agreement should be finished in the second half of this year. The €455mn ($513mn) offer from Eurochem is for Borealis' nitrogen unit, which incorporates its compost, specialized nitrogen and melamine products . Eurochem will obtain three production facilities in France, one in Germany and one more in Austria, as well as Borealis' full deals and conveyance organization utilizing the Danube River. Borealis will start mandatory information and counsel strategies with employee representatives shortly. The exchange is likewise dependent upon specific closing conditions and administrative endorsements, with shutting expected for the second half of 2022. Eurochem quoted that Borealis has in excess of 50 distribution focuses across Europe and around 4m tonnes of product provided every year in western, central and southeast Eu...

Ammonia prices are falling in Saudi Arabia and other parts of the world, reducing fertiliser cost pressures, and providing relief to farmers preparing for spring planting. Aside from continued applications in the Middle East, Ammonia pricing remained mostly on a downward trajectory in the late January. In January, there was not enough domestic fertiliser activity to report, as barge trade and terminal buying remained quiet. As per the ChemAnalyst database, On the 28th of January, FOB Jebel Ali Ammonia prices were reported at USD970/MT, a decrease of 2% week-over-week in Saudi Arabia. The fact that European natural gas prices were half of what they were at the most recent market high early last month is helping to bring the prices to a certain low level. In January, the price gap between relatively cheap prices in the Middle East and higher prices elsewhere in the world remained large enough to make exports commercially viable. The decline in price trends was caused by aggressiv...

After a sluggish end to 2021, Indian Polyethylene Terephthalate (PET) market has shown early signs of recovery on the back of strong feedstock Purified Terephthalic Acid (PTA) values in 2022. Both Purified Terephthalic Acid and Polyethylene Terephthalate markets have gained significantly in early assessments of Q1 2022. Purified Terephthalic Acid prices have increased by 3.5% in the last week of January since the conclusion of Q4 2021 on Ex-location basis while Polyethylene Terephthalate market has risen by 6.7%. Increasing cost pressure from PTA has prompted market participants to opt for price spike in Polyethylene Terephthalate values. Improvement in feedstock Purified Terephthalic Acid has been termed as timely by several market participants after sluggish Q4 2021 where market observed significant deterioration in values. Market participants have been revelling in the bullish rally of Purified Terephthalic Acid values and are optimistic about Polyethylene Terephthalate market. ...

Acrylonitrile prices rose in Asian market last week, owing to surging upstream Propylene. Players witnessed a market scenario in which product supply tightened, while a series of planned regional plant turnarounds helped improve the buying sentiments. The price rise was attributed to firmer upstream energy values and protracted tight product avails within the region. The Acrylonitrile market is probably going to trend higher within the week as global shortage woes lend support. In South Asia, Acrylonitrile prices rose by USD30/MT, hitting a new 20-month high during the start of February. The Chinese propylene market is expected to rise this week, owing to disruptions in Deepsea shipments from the US due to bad weather and restocking demands following the Lunar New Year vacations. China has a scarcity of supplies. Shandong Shida Shenghua Chemical produces 70,000 t/yr. of petrochemicals. The plant is prepared for shutdown and is currently operating at about 70% capacity. These factors...

Polyethylene Terephthalate prices have been closing in on USD 2000 per MT on FOB basis, the recent price increase of USD 90 per MT meant prices are in touching distance at USD 1980 per MT FOB US Gulf Coast. PET prices have gained more than USD 250 per MT in the last quarter. Polyethylene Terephthalate prices in USA have been on an incessant uptrend since October due to consistent demand from downstream users as PET forms a staple for beverage bottles. PET demand has been on the rise since the advent of last summer. Earlier due to ample inventory levels PET prices remained stable in Q2 and Q3, however inventory levels have deteriorated drastically in Q4 and consequently prices have observed such record values. Feedstock Purified Terephthalic Acid (PTA) availability has dropped substantially in last few months which culminated into curtailed production of downstream PET. For PTA, US largely depends on exports from Mexico however, production lags in Mexico hampered supply of PTA in...

Caustic Soda prices in Germany have continued to follow an upward trajectory since early-January. Export enquires for Caustic Soda from the region have picked up actively from Asia as the production in China is likely to narrow following the lunar holidays and winter Olympics. Whereas series of planned turnarounds in US in Q1 has stressed its players over their inventory levels which has also made several traders to fetch upcoming requirements from Europe. In December, Caustic Soda pricing eased significantly owing to the increment in supply in the market. Supply pressure upon Caustic Soda largely eased as plants which earlier were temporarily shut, finally began production in Q4. Vinnolit, a mega producer of Caustic Soda and PVC in Gendorf, Germany upliftment of force majeure which further assisted the supply market. Besides, several traders were also heard allowing consistent negotiations in order to idle their inventories before the year ends.   With gradual increment in enqu...