ChemAnalyst

Poly Vinyl Chloride sentiment has recently showcased mixed sentiments across global markets due to growing demand amid many factors that weigh on consumption in the month of April. The world’s largest PVC producer, China, has been partly experiencing pressure as the resurgence of Covid has hit demand for Poly Vinyl Chloride . Additionally, import offers in Turkey and Egypt markets have already seen a downward trend for the product. China’s domestic PVC market reflected weak demand conditions amid the extended lockdowns in Shanghai as prices softened this week. Manufacturers indulged in procuring stable offtakes in the domestic market as delays in export activity due to a shortage of containers for shipment led to a reduction in prices of several commodities, such as PVC. The activity was limited as players had put up a wait-and-see attitude before the announcement next week. The European Spot PVC market showcased a high price trend in comparison to other regions amid ongoing geopolit...

Considering a well-developed relationship with volatility, the prices of Crude are on the rise again after rebounding from the lowest levels in late February. Oil prices have seen yet another wave of increased instability as the Russia-Ukraine situation enters its third month. Russian troops have intensified their attack on eastern Ukraine's Donbas region, prompting the Group of Seven nations' finance ministers and Central Bankers to declare that they aim to isolate Moscow from the global economy for its unjustified "war of aggression." The crisis is expected to devolve into a war of attrition, with Russian officials hoping for the defenders to surrender after running out of food or ammunition while the attention switches to the Donbas. Trying to interpret the oil markets at this moment, however, is like looking into a clairvoyance. The European Union is still considering an embargo on Russian oil, but despite the lack of formal agreement, a number of consumers appea...

The second week of April saw prices of Propylene in the Asia Pacific region dip across most countries on the back of an ease-up in the prices of crude oil. Epichlorohydrin prices in the Asia Pacific region have been on the rise throughout the month of March before seeing an eventual dip in the last week of March as prices of upstream propylene eased up by the third week of March. Downstream demand from the synthetic glycerine and Epoxy resin industries has been steady through March. Chinese ECH prices have seen a dip during the week ending 15 th of April, making short gains in spot trade in the previous week. Thailand too had seen a similar trend with Aditya Birla Chemicals revising their offers upward for the month of April in expectation of higher feedstock prices as was the case in the last week of March. Spot prices, however did not reflect the cost-push by producers as prices of ECH started to fall in the third week of April as the crude oil market in the prior two weeks did n...

The global Fatty Acid market , which witnessed its record height in the previous months, has been rallying downwards since early April. Despite the strong feedstock Palm Oil market, this downhill price trajectory caught the surfactant players off guard. The demand for downstream cleaning agents and cosmetics has remained relatively low worldwide. Fatty Acid prices are now sliding, leaving no space for negotiation in the overseas market. Accordingly, trade and shipping volumes are continuing to decline weekly. The persistent energy crisis in North America worsened with the unprecedented heavy snowstorm. Eighteen states are under impact by blizzards, thunderstorms, and tornadoes. The region's power outages and transportation constraints have affected both the manufacturers and consumers. The supply side's positive support also dwindled when most facilities were shut as the storm knocked out power.   The third-largest exporter of Fatty Acids, China, has a very different scena...

Acrylic acid price has been facing frequent hiccups in the global market for a long time under several market fundamentals that have been changing the overall market dynamics of the product. As per the ChemAnalyst analysis, the ongoing Russia Ukraine war has affected the global demand-supply chain for several commodities, including Acrylic Acid. Different regions have been performing differently, as the market fundamentals vary on various grounds. Talking about Asia, China has been under lockdown restrictions since the mid of March, while the battle with another wave of the pandemic is still on. Being a major producer in Asia, China’s Acrylic Acid market tumbled effectively in March 2022, while other neighbouring nations started facing the threat of scarcity. As per the data, a considerable increment of more than 7% was observed during the first three weeks of March, which later kept on tumbling till the end of the month, as pandemic restrictions in the country were getting worse day ...

Rising Upstream Crude prices and their derivatives, the ongoing geopolitical tension disrupting the trade, and the increasing demand from the end-use industries has resulted in a rise in the Isopropyl Alcohol prices in global market . China is the major exporter of Isopropyl Alcohol in the global market. The disruption caused on the Chinese ports due to the resurgence of COVID has led to a delay in the trade, which resulted in upward trajectory movement in the Isopropyl Alcohol market. Moreover, the Russia-Ukraine conflict have caused a spike in crude and natural gas costs, which has impacted raw materials like acetone and propylene, further affecting Isopropyl Alcohol values. According to the ChemAnalyst data, the price of Isopropyl Alcohol in China settled at USD 1155 per MT on week ending 8 th April. Isopropyl Alcohol with 70% concentration is highly used in the production of common alcohol swabs and wipes. Also, it is widely used in downstream cosmetics, paints and sanitizer whi...

Strong demand for Wastewater treatment chemicals resulted in constant firmness in the prices of Acrylamide in the global market. Growing awareness over water management and treatment and increasing stress by the governing bodies has made water treatment a potential growth segment for Acrylamide prices of global market . Acrylamide is industrially produced by the hydration of acrylonitrile. Acrylamide is widely used in water treatment as its derivative is polyacrylamides which is majorly used in Water treatment as it has characteristics of varying water solubility. The bulk production and consumption of Acrylamide is concentrated in mainland China, the USA, and Germany. In China, production activity was halted due to the implementation of Zero Covid policy amidst pandemic Covid 19. Under zero covid policy, strict restrictions have been imposed on production activity in the country along with port congestion at several container gateway like Ningbo. Meanwhile, the prices are observed t...

Mono Ethylene Glycol prices dipped after observing a rise during the last week of March due to fluctuating crude oil prices. This drop in energy prices relieved the market prices of all crude derivative products including, Ethylene, and feedstock of MEG. In addition, due to the current epidemic situation in China, the manufacturers are hamstrung from increasing their prices, seeing the weak demand from downstream packaging and textile industries in the domestic market. MEG market dropped following the feedstock ethylene in the second half of this week after the smoothening of natural gas prices in the global market and the sluggish demand from the Asia-Pacific region because of lockdown in China. Ethylene Glycol manufacturers have also reduced their operating load by 3% compared to the beginning of the month. There was a drop in construction by 2% in the downstream polyester industry with insufficient inventories. China, being a net importer of Ethylene Glycol, has witnessed several...

The Global Butyraldehyde market is witnessing an uptrend under the influence of a steep rise in upstream value coupled with improved demand from the downstream market. The sudden escalation in crude oil value due to the Russia Ukraine war injected inflationary pressure on consumers, which contributed to frequent price revisions by key players. As per ChemAnalyst data, changes of around 3.5% and 2% have been observed in the price of Butyraldehyde during February-March 2022 timeframe in India and Japan, respectively. These price revisions were bolstered by rising crude oil value coupled with improving economic activities in the regional market. Meanwhile, pandemic-related uncertainties have been a matter of concern for global key players, as China is in lockdown again, while Europe and Canada are also witnessing a resurgence of another COVID variant. Furthermore, demand fundamentals for Butyraldehyde from the downstream 2-Ethyhexanol and other paints and coating segments maintained ove...

In the Asian market, the spot prices of Methyl Methacrylate (MMA) are hovering around USD 2200/ton - USD 2400/ton. In China, Poly methyl Methacrylate prices surged by 20% - 30% for April shipments. Methyl Methacrylate General Purpose (GP) prices accelerated to USD 2100/ton-USD 2350/ton CFR, China, and USD 2400/ton-USD 2700/ton CFR for Southeast Asia in the first week of April. Feedstock Methanol market continued to increase with the price range of USD 420/ton-USD 470/ton, affected by coal shortage and reduction in production rate. Surging Covid cases in China with port congestions shoot up the prices of Petrochemical products in the domestic market. The production rate is also affected in China due to supply shortage and runs with a capacity of 60% - 70%. This week, PetroChina Jilin cut the production rate of the Methyl Methacrylate plant affected by the upstream Acrylonitrile (AN) plant shutdown in mid-March due to economic reasons. In Europe, soaring energy value and bullish raw mat...

During the initial assessment in April by ChemAnalyst, Acrylonitrile Butadiene Styrene prices have increased sharply on the back of firm cost pressure from three feedstocks and stable demand fundamentals from the downstream industries. Acrylonitrile Butadiene Styrene market has witnessed a robust bullish rally in March, and prices continue to move northwards. As of the 1st week of April, Acrylonitrile Butadiene Styrene prices in China have been assessed at USD 2395 per MT on FOB basis. Among feedstocks, the prices of Butadiene have been going through the roof in the domestic Chinese market. As per the latest insights from China market, Butadiene exports have been shunned in order to cater to the domestic demand. Butadiene, which finds its wide use in many polymers and elastomers, has been in rich demand in both rubber and polymer markets. Hence, Butadiene prices have been assessed at USD 1640 per MT on FOB basis at the beginning of April 2022. Meanwhile, the Styrene market has ob...

The price of Acrylic Staple Fibre rises in the Asia Pacific region owing to high feedstock acrylonitrile, whereas the Propylene market saw a downtrend with easing crude price. As per the market source, the Acrylic Staple Fibre (ASF) 1.5D grade prices this week increased and were assessed at USD 2910 in China on an FOB basis. Acrylic staple fiber is used in sweaters and sewn products due to its warm texture. It is also used in apparel and household industries. Producers believe that the demand has slumped drastically for apparels, but the demand is still stable to firm from the carpet manufacturing industry. Hence, the prices of ASF have not deteriorated despite declining demand from the clothing industry. Meanwhile, feedstock Acrylonitrile faces competition from other industries with high demands from rubber, plastics, pesticides, and the chemical industry. Imports of Acrylic Staple Fibre for European region remained weak due to persistently high freight charges and weakening deman...

Asian Natural Gas prices surged, tracking European gas prices due to limited Russian gas flow and LNG supply. High LNG spot prices come with increasing crude oil prices staying above the $100/barrel mark due to emerging demand and limited supply. On 17th March, Reliance Industries Limited sold Natural gas from its coal bed methane for around $23.5/MMBtu in Madhya Pradesh. It was heard that LNG importers like Pakistan, India, and Thailand had to pay approximately $33/MMBtu - $36/MMBtu for spot LNG cargoes which is the highest price they had settled in the market. In the Chinese market, the drop in total imports came as spot prices increased due to supply shortages, and buyers switched to coal for their requirements. On 30th March, at Title Transfer Facility (TTF) in the Netherlands, the LNG spot prices rose to a weekly average of $34.66/MMBtu due to bullish demand and limited supply. The Henry Hub spot prices rose from $5.26/MMBtu, on 23rd March, to $5.34/MMBtu on 30th March. In this w...

The market for Acrylonitrile has been depicting contrasting trends at different latitudes on account of distinct upstream cost and downstream demand in different territories. Acrylonitrile, produced from ammoxidation of propylene, is the upstream for ABS and Acrylic fibres. Hence, the fluctuations in the demand or prices of propylene and ABS majorly influence the market for Acrylonitrile. The Asian countries are witnessing a complete turnaround of Acrylonitrile prices from the other parts of the world, making them an exception. In Asian countries, the price of Acrylonitrile is falling, owing to the ample supply of upstream propylene. The stable to marginally lower demand for Acrylonitrile Butadiene Styrene (ABS) has also supported the price drop of Acrylonitrile in Asia. The numerical data from the continuing week confirmed the reports about this price dip. The evaluated price value implied a decrement of USD 5/MT from Monday to Tuesday in the ongoing week at FOB Korea and CFR China...

The global rise in raw material costs has been pressuring key players, compelling them to perform frequent price revisions to sustain profitability. However, global crude oil value has started showing some ease in the market, making it more feasible to produce and sell cargoes at a comparatively cheaper value. Nevertheless, the Russia Ukraine conflict, which was the prime factor behind the steep rise in prices of global crude oil and natural gas, is still a major concern for the global market. Despite several sanctions and attempts of interference by different nations, peace talks haven’t been successful somehow, and the conflict is still a centre of global trade and geopolitics. As per the ChemAnalyst data, under the influence of significant ease in the global crude oil value amid declining queries from the downstream market, the n-Butanol price in Asia . The data shows a decline of around 5.5% and 3.6% in India and China during the last week. However, there are different reasons behi...

Low-Density Polyethylene spot prices throughout March have shown stability mainly due to a relaxation in the price of feedstock ethylene prices. Spot ethylene monomer price dipped by over 21% during the period 25 th February 22 to 18 th March 22. The dip in price was in tandem with the decrease in prices of Natural Gas Liquids (Ethane and Propane) during the same period. Spot LDPE film and Injection grades’ trade volumes saw a spike in the first week of March in expectation of higher future prices in the wake of turbulence in eastern Europe and possible retaliation from the west in the form of sanctions on Russian oil and gas which could cause the prices of Natural gas which would, in turn, increase the prices of Ethylene. Natural gas prices in the US have indeed risen by USD 0.54/MMBtu in the first week of March. While most resin material transacted in March was off-grade, prime quality resin swaps have been very few. Supply tightness in the anti-block and slip additives market p...

Demand of Caustic Potash showcased an upward trajectory in March due to increase in the demand from the fertilizer sector globally, where Caustic Potash is used in the manufacturing of liquid fertilizers. As sowing season is approaching in various countries like China, South Korea, Indonesia, fertilizer offtakes have been increasing across the Asian region. Besides, the increase in demand from the detergent sector was observed as a result of fear of resurgence of Covid 19 in various Asian countries. The Russia-Ukraine crisis has been causing global supply disruption for agrochemicals as Ukraine and Russia are the key exporters of agricultural inputs. The war between Russia and Ukraine has impacted the global supply of agricultural inputs in India and turkey. China has been witnessing a resurgence of Covid 19 due to which the country has imposed a Zero Covid policy. Under zero covid policy, the lockdown has been implemented in the country, where chemical plants such as Lu Bei Chemical ...

Global uncertainties amid the ongoing crisis between Russia and Ukraine have resulted in strong crude oil prices in the global market. Consequently, cost pressure over Raffinates and further downstream Butylene and Isobutylene prices has increased. Hence, prices of Isobutylene have shown an upward trajectory during the past few weeks on the back of robust Raffinate R1 and R2 prices. Furthermore, strong demand for Isobutylene from tire and gasoline additives has been driving the prices higher as Isobutylene is used in the manufacture of Elastomers. Isobutylene is also majorly used as a monomer to produce polymers including polybutene, and Polyisobutylene. As Per ChemAnalyst database, the prices of Isobutylene FD Hamburg Germany were assessed at USD 1115 Per tonne, while Quotation in the USA FAS Texas was reported around USD 1050 per tonne.  The ongoing crisis between Russia and  Ukraine has majorly influenced upstream crude oil prices and downstream Raffinate prices which has...