ChemAnalyst

The demand for Polyurethane comes from various end-use industries, which in turn propel the Polyol market as Polyol is primarily used to make Polyurethane. Different types of Polyols exist in the global market; however, the consumptions of Polyether Polyol and Polyester Polyol are the strongest. The demand for Polyurethane majorly comes from home furnishing, automotive, packaging, and construction industry to form flexible or rigid foams. Asia-Pacific is the fastest-growing region in the Polyol market owing to the increased demand for Polyol in the automotive sector. At the same time, increased consumption of polymers is another reason driving the need for Polyol in the Asia-Pacific region. Europe follows Asia-Pacific in terms of Polyol consumption. The demand for Polyol is vital in the European market due to the enhanced demand for inexpensive energy-efficient home insulations. The growing automobile and construction sectors in America raised the demand for Polyol to reduce the manuf...

As of last week of March, Acrylonitrile Butadiene Styrene market has observed another price hike on the back of strong cost pressure from upstream feedstocks. ABS market has been firm in the European market, and the latest gain in the prices has further deterred the procurements from buyers amid sluggish demand fundamentals. Feedstock prices have increased consistently in the last two months due to strong crude oil and natural gas prices throughout Europe on the back of ongoing uncertainties around the supply of energy feedstocks in the global market. Market dynamics were tighter as the demand for crude oil was outpacing the available supply; however, the Ukraine-Russia conflict has further exacerbated the demand-supply dynamics. In the European region, demand from the Automobile industry has slowed down in H2 of Q1 owing to weak output rates from one of the most productive industries in Europe. This has resulted in weaker procurements from the downstream users. Since the beginning ...

Propylene, one of the widely used feedstock, has several derivatives employed in distinct downstream industries. Polypropylene is the most utilized Propylene derivative primarily used in automotive industries. Propylene oxide, another derivative, finds its usage in mattresses, car seats, and construction chemicals. Simultaneously, Acrylonitrile is a significant constituent in polymers and elastomeric fibres. The market for Propylene derivatives witnessed a bullish pricing trend in the last few weeks. The prime reason behind this surge is the growing crude oil price trend. The ongoing conflict between Russia and Ukraine are propelling crude oil prices upward, resulting in fuelling Naphtha prices. Consequently, raising Propylene prices and its derivatives as Naphtha is the feed for Propylene. The rising upstream cost involved in Propylene production, in turn, is affecting the supply rate of the same. Furthermore, several industries have a strong demand for Propylene derivatives due to t...

Petrochemical industries are forced to reduce their operating rates or switch to other fuels due to the skyrocketing prices of naphtha owing to highly volatile trend of upstream crude oil which is worsened by the ongoing Russia-Ukraine war. Naphtha-fed steam crackers have reduced their productions in Asia since last quarter of 2021 and most of their production have reduced to 70%, since the turmoil caused by the current geopolitical situation doesn’t seem to resolve soon, so it will likely led to production cuts further downstream. Since the main feedstock in petrochemical crackers in the US is ethane which is derived from Natural gas unlike Europe and Asia where the industries rely on Naphtha derived from Crude oil, so the downstream products like polyethylene (PE) and polypropylene (PP) in the US didn’t have to reduce production from soaring crude oil price. But in the Asian market it was quite the opposite, PP and PE producers in north Asia have planned to shut down for couple of m...

In Africa cobalt, gold, copper, and diamonds are widely mined and are the dominant players in the international mining industry. Due to large numbers of mines, the environmental hazard is also high in those mining regions. To reduce the environmental impact, Hydrogen Peroxide (HP) is used for various activities like oxidizing, as a disinfectant chemical and as a bleaching agent in the mining industry. Recent discovery of medical uses of Hydrogen Peroxide, a ten-year-old study, states that Aerosolized Hydrogen Peroxide prevents  C. difficile  infection (CDI). Hydrogen Peroxide is also highly used in wastewater treatment plants and as Africa is urbanizing the need for HP increases. The usage of HP in Medical and Wastewater treatments increases the demand for HP in Africa and abets the current price hike. The prices of Hydrogen Peroxide (HP) are soaring across the globe due to its multiple uses and its demand in various fields like (mining, pharma, bleaching agent in textile and ...

The Ethanol market in United States has observed the average price of Ethanol at 1.01 million barrels per day this year in the month of March. This reliably taking off creation target cultivated various questions against the reducing net revenues among the Ethanol manufacturers in the USA. Being the sole predominant country in the worldwide market with the reliably developing everyday creation volume regardless of the broken interest from the end-use customer prompted a solid reaction from the Ethanol makers in the USA.  The conflict between Russia and Ukraine has led to a hike in the competition globally for the grain manufacturers. With the burgeoning cases of Omicron in China, major trading has come to halt.   Albeit such improvements will be fleeting as the expense support from the upstream corn, sugarcane and wheat are reliably taking off owing to the rising competition to produce grains like wheat. An indirect effect has also been observed in the price hike of food gra...

Urea prices are currently at record levels, owing to cost support from upstream Natural gas and Coal, driving the price trend upward. Following the incursion of Ukraine, Urea markets, particularly west of the Suez Canal, saw a rise, spurred by rising gas prices and supply uncertainties.  Russia is the world's largest fertilizer exporter, but its conflict with Ukraine has hindered shipping and raised natural gas costs, a significant element in fertilizer production. Since the invasion began, Urea fertilizers futures have increased by 32% globally. The prospect of shipments being disrupted comes as fertilizer costs have already been rising because of higher upstream values, which have led some factories to suspend or limit production. As crop costs rise, the jump in the nutrient is fuelling fears of rising food inflation. Rising inflation in the United States has also weighed on the Nitrogen fertilizer prices. FOB   Corn Belt prices have remained in a range of USD 1,350 – USD 1...

Acrylonitrile Butadiene Styrene (ABS) market has been strong worldwide on the back of stable to healthy demand dynamics and rising uncertainty around global supply chains amid escalating European crisis. Another key factor at play has been the substantial volatility in crude oil prices globally which soared to USD 130/b in March first week and then declined sharply. Railway and road transport from Asia to Europe has been severely hampered on the backdrop of ongoing crisis between Ukraine and Russia. Along with this, recent resurgence in covid cases and lockdown in city of Shenzhen in China has further escalated the uncertainty around supply of various commodities in the global market. There are speculations around closing Shanghai port, one of World’s largest port, under the fear of rising covid cases. The situation is expected to send shockwaves in the global supply chains. Meanwhile, in the European market, Acrylonitrile Butadiene Styrene prices has gained more than 2.5% during ...

Recently, DAP (Diammonium Phosphate) prices increased significantly in March, amidst stable to low demand from the agriculture sector as this is Rabi’s harvesting season in India. As per ChemAnalyst data, Diammonium Phosphate prices on CRF basis in March is INR 68.2/kg. Factors influencing price fluctuations are less import volume, increased supply in the regional market and strong buying activities in the region amidst stockpiling activities ahead of anticipated demand during the spring season. Prices of upstream Natural gas continue to rise on the back of Russia – Ukraine conflict. Consequently, feedstock Ammonia prices are also increasing owing to high demand from the downstream sector coupled with soaring input costs. The price of Natural Gas surges to 2% i.e., INR 330720 per thousand MMBtu, in the Indian market, whereas the Ammonia feed prices increases by 4% in March. Feedstock Phosphoric acid in India is witnessing an upward trend and prices are increasing continuously. There h...

The prices of Toluene Diisocyanate , a major feedstock for Polyurethane, have been increasing from the last few weeks in India. Polyurethane is a widely used commodity in India that find its applications in several distinct end-user industries. Polyurethane is primarily employed in bedding and furniture, automobiles, paints, and adhesives. The Indian market has also been affected by the ongoing conflict between Russia-Ukraine, resulting in high crude oil and natural gas prices. The inflation in the Indian Market can be seen through the soaring prices of several commodities, including Toluene Diisocyanate (TDI).             Following its last week's trend, Toluene Diisocyanate prices inclined upwards and marked a spike of 2.66% in the Indian domestic market during the week concluding with 11th March. The prime reason for the consistent price hike of Toluene Diisocyanate was the robust demand from the downstream industries to form Polyurethane. The demand for...

In this week, the prices of Polystyrene in Germany surged to $2540/ton HIPS FD Hamburg and $2370/ton GPPS FD Hamburg with a week-on-week increment of 2.42% and 2.60% respectively. Feedstock Benzene and Ethylene prices also surged with increasing crude and Natural Gas prices. Strong market sentiments along with insufficient product availability resulted in such a price trajectory. European Benchmark gas costs bounced by 79% to as high as $379 per megawatt-hour, while Brent crude soared by over 10% to the trading of $139/barrel. On 2 nd March, the German government chose to deliver 434,000 tonnes of its national oil reserve with arrangements by members from the International Energy Agency (IEA) considering the conflict in Ukraine. Germany's commitment to the IEA total, determined based on each member’s oil utilization was 5.4% which relates to 434,000 tons or around 3% of Germany's oil reserve. Styrene costs are likewise surged with speeding up the Benzene and Ethylene market. ...

Acetic acid prices in the domestic market have been falling for quite a long time in the United States market on the back of insufficient purchasing activity, and weak prices for feedstock Methanol in the regional market. Acetic Acid prices in the domestic market of the United States have been stifled by rising inventory pressure and weak demand from downstream. Upstream Natural gas prices, on the other hand, soared as a result of the conflict between Russia and Ukraine, while Acetic acid prices were brought down by weak downstream demand and market saturation. Feedstock Methanol prices have plummeted because of the surplus. In terms of inventory, they increased dramatically, and profit margins were compressed, impacting the Acetic Acid derivative market. Acetic Acid prices fell to USD 1300/tonne FOB Louisiana and USD 1280/tonne FOB Texas this week, showing around 2% week-on-week decline. In North America, the price trend has been progressively dropping due to low demand and abundant ...

Ever since the Russian troops stormed Ukraine in the early hours of Feb 24th, China’s fast-moving markets are being consistently hit by energy haves and have-nots, havens, and non-havens. An all-encompassing effect has been witnessed across the world due to the surging Crude oil and gas prices , including the nations that are exporting oil and coal and nations that rely heavily on the energy imports. Amidst the current beleaguered economy, China is attracting more and more investors seeking safety. As the country was already on the road to recovery after the unprecedented outbreak of the Omicron variant that overtook Delta in late November, shutdown of markets due to the Spring Festival holidays & Winter Olympics left the demand & supply sentiments in a frenzy. The 2022 Beijing Winter Olympics that started on February 4th has put China’s strategy to a new test. In the sudden wake of the Covid-19, the demand for several vitamins increased significantly in China as a holistic app...

The unrest in Europe does not seem to mellow down any time soon, judging from the current geopolitical scenario of Eastern Europe. Although ceasefire had been declared with effect from 10 A.M Moscow time, Monday, Ukrainian president Volodymyr Zelensky accuses Russian troops of night-time shelling of Ukrainian cities. Crude Oil spiralled to USD 130/b as of Monday the 7 th of March with Brent prices soaring as high as USD 139/b. As the US and EU allies contemplate a ban on Russian crude, ChemAnalyst predicts Oil price to continue its surge for the rest of the quarter and perhaps longer. India’s energy security could be gravely impacted if the current trend in the crude and natural gas markets continue for long. Natural gas prices too have breached the USD 5/MMBtu mark on Monday. CLSA predicts Indian LNG prices to be constantly above the USD 30/MMBtu mark throughout 2022 which could mean further pressure on India’s energy basket. The government will have to continue its policy of ratio...

The Fertiliser market in China began to improve as the Chinese New Year comes to an end. Since the beginning of 2022, demand for urea, one of the most important fertilisers, has been strong. After New Year's Day, the demand for local stockings led Urea prices to surge. As the activities of Urea firms quickly resumed, the market began to rise. In addition, as the spring farming season began in March, the price began to fluctuate slightly. For the current week, the FOB price of Urea is USD 474 per tonne, according to the ChemAnalyst database. Urea prices have risen as daily Urea output has decreased in February, with a decline in output in Shanxi, Hebei, Inner Mongolia, and Xinjiang being the primary cause of the progressive reduction in daily output. Furthermore, due to a paucity of natural gas resources around the world, coal and natural gas prices have continued to rise. Certain coal-based urea industries in North China have restricted production due to the Winter Olympics.  Wit...

In the last week of February, the Yellow Phosphorus in the Chinese domestic market observed an enormous surge of 7% on a week-on-week basis, due to the contradiction in the supply-demand outlook in the domestic market. This market development came as a long-term impact of the ‘dual control on energy consumption policy’ imposed by the Chinese authorities to curb carbon emission during the third quarter of 2021. Therefore, in response, it intensified the uptrend in the producer's quotations of Yellow Phosphorus in the Chinese domestic market. Currently, the demand outlook of the Yellow Phosphorus observed a significant boost as the market sentiments rebounded after a weeklong Lunar New Year holiday’s in China. The supply outlook further worsened the situation, as the inventories levels were running low despite the lower operational rates at the production facilities in China. Yunnan province in China has an important position in the production of Yellow Phosphorus, with a cumulative...

Russian invasion of Ukraine continues in its 5 th day amid diplomatic talks between the two countries in Belarus. Russian invasion has been highly condemned and criticized by the West while East opted for peaceful negotiations between the two countries. West has been severe in its reprisals and sanctions have been imposed in order to isolate Russia from the financial systems. Consequently, Russia has been ousted from SWIFT payment system. Impact of Russia-Ukraine war on oil and Gas has been more than evident where ICE Brent was trading in excess of USD 105 per barrel while WTI transverse USD 100 per barrel. Repercussions of Russia-Ukraine war are likely to appear on global convertors’ margins, as crude value has already started hampering their margins. However, key players in Asia and Middle East including ONGC and SABIC shall reap some short-term benefits post steep escalation in price of global crude oil value. The strong bullish rally of crude oil is likely to result in robust pr...

This week, the average production prices of Paraformaldehyde in Shandong, China observed to be $887/ton. On 1 st Feb the average price trend was $876/ton with an increase of 1.2%. Feedstock Methanol production prices were also fell in February, where the prices were $424/ton in the starting week of Feb and fell to $416/ton with the declination of 1.96%. In Feb, the prices of Paraformaldehyde rise and then fell. On 22 Feb, Linyi Shengyang Chemical co. Ltd. with the annual output of 9000 tons of Paraformaldehyde quoted the ex-factory prices $918/ton and the prices remained unchanged. After Winter Olympics, enterprises gradually started working again and the downstream enterprises of Paraformaldehyde recovered with robust purchasing activities and the market trading environment was observed to be healthy. Feedstock Methanol market remained weak and were rebounded again towards the end of the month. The exports to Taiwan and Indonesia were heard to be operated moderately. Weak Methanol d...

Indian Oil Corporation (IOC) state-owned top Crude Oil refiner in India , has bought Russian Urals crude after a prolonged wait of two years, just after spot differentials slumped. This Russian flagship-grade Crude typically headed to Europe and seeks the interest of the Indian buyers after its discount in comparison to the Brent crude oil fell to the widest since early 2005. This development is majorly an outcome of the rising tensions in the eastern European region between Russia and Ukraine.  Last week the International Crude Oil price offers soared drastically over the USD 100/barrel mark after Russia invaded Ukraine. Whereas, being an agricultural dependent economy coupled with the spiked food pricing index and the global shortage of fertilizers amidst the restriction of export of DAP and phosphate-based fertilizers component from China till the end of the second quarter of 2022. Therefore, the consistent chain of events of the geopolitical turmoils jeopardizes the favorable ...

On 24 th of February 2022, Russia invaded neighbouring Ukraine under the garb of existential crisis. Russian forces have opened three-front war on Ukraine, troops and tanks have been entering from Donbas, Belarus and Crimean Peninsula. Certain anticipated implications have manifested rather instantly where crude oil prices have breached USD 100 per barrel while stock markets have nosedive globally. These developments will not only lead to regional instability but also have global ramifications. Consequently, West has also started imposing economic sanctions and other reprisals on Russia for “illegally” invading Ukraine. Major western powers including USA, EU, UK, Canada and other nations have imposed heavy financial sanctions and export controls in order to isolate Russia from global financial system. Impact on Oil and Gas and their derivatives Repercussions of Russia-Ukraine war are likely to appear on global convertors’ margins, as crude value has already started hampering their...