In Q3 2023, the price trajectory for Naphthalene Price in the US witnessed a bearish price trend in the wake of limited market trades and limited product consumption from the downstream enterprises. The supply of Naphthalene in the USA remains ample to meet the downstream market requirement along with lackluster downstream enterprises. Imports of commodities from Japan to the USA remain feeble this quarter, with a negotiable price trend between the suppliers and buyers. Participation in the Naphthalene markets remained sluggish, and trade volumes were relatively low. Despite the surge in the feedstock coal market, the demand fundamentals from the downstream enterprises remain sluggish, declining the price trend. Operating rates among the enterprises are operated stably with cautiously operating downstream ventures. In Sept, the price of Naphthalene in the USA declined to USD 1876/ton CFR Houston. Oversupply fear hangs over the North American market, and significant players showcase discounts on bulk purchases. Due to an adequate supply and weak demand, the price of Naphthalene also decreased with subdued trade fundamentals.
Due to a lackluster demand and diminished purchasing appetite, major Naphthalene producers have scaled back their production facility operation rates. In response to the unfavorable trend in the region, both regional and overseas providers have publicly announced price reductions. Turning to the feedstock market, China has significantly increased its annual import limit of Coal from Australia to 300 million tonnes, reflecting an 82% surge in Coal consumption from China. Local market prices continue to decline, influenced by low inventory utilization and unfavorable benchmark futures. The primary factor behind the region's reduced commerce during the recessionary period is sluggish demand. Spot expenditure has decreased, with suppliers making purchases solely based on necessity. While the downstream Agrochemical and Dyes intermediate market is still affected by ample supply and robust demand, prices in the Chinese market are decreasing due to weak spot negotiations and dealers acquiring limited quantities at lower rates. In September 2023, the price of Naphthalene in China declined to USD 972/ton CFR Qingdao.
