Market Overview
For the Quarter Ending June 2021
During the second quarter of 2021, the regional Chloroform supply remained tight due to extreme feedstock Chlorine shortage reported by the key regional producers. Downstream industries recovered over Q1 due to the restoration of the industrial infrastructure in the US Gulf coast after remaining largely disrupted due to winter storm in Q1. The resumption of several producing units meant better availability of upstream Methanol. Offtakes from the downstream industries surged amidst the peak demand season from the building and construction sector during the second quarter. FOB Texas Chloroform prices in June were assessed around USD 700 per tonne.
Chloroform pricing trend in the Southeast Asian region showcased mixed results despite sufficient inventories of upstream Methanol and Chlorine. In India, the market was weighed under slow offtakes due to reduced industrial consumption amidst the partial lockdown to contain the spread of second COVID wave in India. Furthermore, weaker Chlorine eased Chloroform prices in the domestic market. Ex-works prices in South India were assessed at USD 500 per tonne in June. While in China, supplies were curtailed as Jinmao Chemicals went for a turnaround in May end, whereas Dongyue Chemicals operated at 60% efficiency and Luxi chemicals operated at 90% efficiency in the same period. Pricing trend of Chloroform in the Chinese domestic market remained firm amidst peak refrigerant demand season.
The supplies of Chloroform in the European region improved as production rates of feedstock chemicals were ramped up. Furthermore, the import market outlook was supported with the better volume offtakes from the downstream refrigerant chemical industries. The overall price trend remained strong due to bolstered demand and strong international pricing. Offtakes from the UK construction sector were strong than anticipated. Due to better demand and stronger margins, price of Chloroform remained firm for a larger part of Q2 in Europe.
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Company-wise installed capacity, production volume and plant operating efficiency is captured directly from manufacturers. Import and Export volume is captured from government sources and demand for Chloroform is calculated considering the production, import, export and inventory-levels on the country and regional level markets.
For the Quarter Ending March 2021
The North American regional market was severely impacted during the first quarter of 2021, as the limited availability of the key feedstocks resulted in reduced production of Chloroform across the region. The industrial infrastructure in Texas and nearby Gulf region collapsed as it cannot sustain such low temperature amidst the region hit by the sub-zero temperature due to polar winter storm. Skyrocketing Methanol and Liquid Chlorine prices proportionally impacted the prices of Chloroform. Demand from the downstream refrigerant and pharmaceutical sector surged.