Hydroquinone Price Trend and Forecast

Regional Price Overview

Get the latest insights on price movement and trend analysis of Hydroquinone in different regions across the world (Asia, Europe, North America, Latin America, and the Middle East & Africa).

Hydroquinone Price Trend for the Q1 of 2024

Asia

The hydroquinone market acquired a stable price trend in the first quarter of 2024 amid prevailing caution and uncertainty in the feedstock prices. The marginal price increases reflected heightened downstream demand, which resulted in the quick drying up of inventories. However, geopolitical tensions and trade disruptions complicated the market sentiments, leading to increased shipping expenses and delays. Despite these challenges, overall price trends remained afloat, influenced by a slight uptick in phenol prices and the rising interest of overseas players.

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The manufacturers, however, moved cautiously and avoided any significant price adjustments of hydroquinone. Additionally, their skepticism rose with the rise in the cost of crude oil and pricing patterns of other raw chemicals after the force majeure announced by prominent industry players, which raised the cost of hydroquinone production significantly.

Europe

The hydroquinone market in the European countries underwent a gradual surge during the first quarter after a phase of significant decline in the starting months, attributed to various factors shaping the pharmaceutical industry. This price hike of hydroquinone was majorly attributed to the rise in demand, supply chain disruptions, and global economic uncertainties.

The trading challenges particularly arose from tensions in the Red Sea and the Suez Canal, increased freight costs, and increased instances of supply chain disruptions. Additionally, the fluctuations in phenol prices and the rise in the cost of raw materials supported a stable hydroquinone price trend by stabilizing production costs amid consistent downstream demand. The strong demand from suppliers and downstream sectors further drove the number of bulk orders for hydroquinone, resulting in the supply-demand imbalance creating excessive pressure on the existent inventories.

North America

In North America, the hydroquinone market experienced a surge in its price trend, partly due to the Federal Reserve's decision to maintain higher interest rates and partially due to the improvement in the industrial growth of the region. The high-interest rates raised the uncertainty of the market, complicating the economic growth of the region and keeping its financial fundamentals under the yellow zone.

The pharmaceutical industries were particularly affected by this move as they changed their production rates and adjusted strategies to navigate global challenges. The producers also undertook the supply chain management issues and looked for alternative routes, considering the impact of geopolitical tensions on operations. Therefore, the convergence of demand shifts, supply chain disruptions, and economic uncertainties, along with the resilience and adaptability in the pharmaceutical sector, sustained the growth of the hydroquinone price trend amid a rapidly changing global landscape.

Analyst Insight

According to Procurement Resource, the price trend of Hydroquinone is expected to be driven by the altering growth rates of downstream pharmaceutical industries and oscillating prices of feedstock phenol.

Hydroquinone Price Trend for the October - December of 2023

Asia

Hydroxyquinone price trend were observed to be oscillating toward the lower side of the price curve during the final quarter of the year 2023. All the major Asian markets experienced plummeting trend for hydroquinone during the given period.

A persistent downfall in the production costs because of the tumbling feedstock costs impacted the upstream cost support and forced the hydroquinone market prices down. A slump in the raw materials benzene and phenol prices dictated the regression in the numbers registered at the hydroquinone price index for Q4’23. Overall, dwindling market sentiments were observed in the Asian hydroquinone market.

Europe

The European hydroquinone markets also reflected the sluggishness of the Asian market during the fourth quarter of the year 2023. The feedstock materials phenol and benzene were noticed to be depreciating here as well, which added to the factors pushing the hydroquinone prices downward.

However, the complicated geopolitical and geoeconomic situations due to wars in the European backyard muddled the global trading scenarios. This directly impacted industrial demands and product consumption by hindering the supply chains at multiple levels. So, with decrepit demands, hydroquinone prices encountered swift downward vacillating trend in the European market during Q4’23.

North America

The global trade disruptions because of various convoluted reasons were visible in the hydroquinone price trajectory of the American market. Degraded upstream costs and a tepid demand structure resulted in the southward movement of prices during the period under discussion. The general hydroquinone market sentiments were observed to be weak throughout the given time.

Analyst Insight

According to Procurement Resource, the Hydroquinone price trend are not likely to pick up anytime soon as the current market dynamics will take time to improve, given the present status of the global economy.

Hydroquinone Price Trend for the July-September of 2023

Asia

The hydroquinone market in Asia behaved in a sluggish manner during the span of the third quarter of the year 2023. The quarterly price analysis showed that the numbers recorded fell consistently throughout the quarter. The primary downward push came from the tepid demand trajectories of downstream chemical and cosmetic industries.

The existing inventory stocks were well capable of managing whatever demands were being posed; however, a regular supply burdened the inventories and forced suppliers to soften up the prices in order to promote Hydroquinone offtakes. The only balancing factor in the Hydroquinone market dynamics was the production cost support coming from feedstock benzene and propane. The rising crude oil prices, too, had their influence. However, the lackluster interest from the consumption sector did not leave much room for the Hydroquinone market to grow. Overall, a de-escalating price graph was observed.

Europe

The price trend for hydroquinone registered a sluggish performance in the European market. The existing supply glut remained the dominant market driver throughout the said period. The price trajectory was observed to be downward-facing for the entire period. Overall, muted market sentiments were observed.

North America

The American hydroquinone market closely mimicked its Asian and European counterparts as the price trend observed a consistent decline during the said period of Q3’2023. In the American market, complicated economic situations also had a role to play in poor market performance. The general market sentiments were observed to be negative.

Analyst Insight

According to Procurement Resource, the Hydroquinone price trend are likely to remain bearish in the coming months; since the existing inventory stocks are still high, the market dynamics will take time to stabilize.

Hydroquinone Price Trend for the First Half of 2023

Asia

The pharmaceutical industries, along with the food and healthcare sectors, performed poorly in the first quarter of 2023, which had a negative impact on the price trend of hydroquinone. In addition to this, the ample supply of hydroquinone in the region and the reduced interest of consumers also hampered the growth of the hydroquinone price trend.

The decline in the prices was much more prominent in the second quarter as the decline in demand steeped. The falling level of the economy and the low number of sales from the downstream industries ultimately kept the prices of hydroquinone in the negative zone.

Europe

In European countries, the downward trajectory of the hydroquinone price trend was caused by low demand from the downstream industries and a slow economy. In addition to this, the imports from Asian countries also declined, hampering trading activities.

The production of hydroquinone was far more than the required amount, which caused the levels of stockpiles to shoot up in the first and second quarters of 2023. The feedstock market also failed to support the market activities of hydroquinone and thus resulted in a decline in the price trend of hydroquinone.

North America

In the first quarter, the demand from the downstream industries was consistent while the freight charges declined. However, the price trend of hydroquinone declined significantly in the second quarter as the demand from end-user industries plunged and the level of inventories rose. Additionally, the market activities of the feedstock markets also remained weak, which further hampered the growth of the hydroquinone market.

Analyst Insight

According to Procurement Resource, the price trend of Hydroquinone is expected to fall in the upcoming quarters as the prices are negatively affected by weak trading activities and low demand from the end-user sectors.

Procurement Resource provides latest prices of Hydroquinone. Each price database is tied to a user-friendly graphing tool dating back to 2014, which provides a range of functionalities: configuration of price series over user defined time period; comparison of product movements across countries; customisation of price currencies and unit; extraction of price data as excel files to be used offline.