Syngas Price Trend and Forecast

Syngas Regional Price Overview

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

Syngas Price Trend for the Second Half of 2023

Syngas price trend continued to mimic the fluctuations in its feedstock materials carbon monoxide and hydrogen prices during the concerned period of H2’23. After a rough and dull run of the year’s first half, the prices finally saw some improvement as the third quarter began.
 

Syngas Price Chart

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The Chinese market opened up more and the fuel and chemical industries presented an increase in demand. However, the resurrection was very short-lived as the price trend started to fall again as the final quarter hit. A downfall in crude oil prices during the last quarter was also responsible for this market behavior. Overall, a varying yet largely sullen market performance was witnessed for syngas in H2’23.

Analyst Insight

According to Procurement Resource, the Syngas price trends are likely to behave in a similar manner and fluctuate in the coming months, as the upstream situation will take time to improve.
 

Syngas Price Trend for the First Half of 2023

Syngas price trend closely mimic any fluctuations in its feedstocks carbon monoxide and hydrogen prices. The market performance was not par for the majority of the discussed timeline. Dull demands from the downstream fuel and chemical industries primarily drove the Syngas market trend. Low crude oil prices with the availability of cheap Russian oil for both India and China also negatively influenced the Syngas rates.

The inflationary pressure subsided during this time, especially for the European region, since the supply chains were actively restored, and trade situations improved. Overall, a sullen market performance was observed.

Analyst Insight

According to Procurement Resource, the Syngas prices are likely to strive for stability, but the upstream situations are unlikely to improve anytime soon.
 

Syngas Price Trend for the Second Half of 2022

Syngas is produced from carbon monoxide and hydrogen gas in coal refineries. It is also produced from the partial oxidation of natural gas. In the third quarter, the prices of natural gas saw a surge globally. In the Asian region, the surge was due to the shortage of fuel and increased export to the European counterparts that offered record-high prices.

The surge in energy prices, utility costs, and inflation resulted in a price hike in the European region. The North American region also saw a steep incline after a period of stagnancy. This incline is majorly attributed to the increasing inquiries from the international market, the high-profit margins offered by European imports, and increased production rates. As the prices of natural gas crucial for the synthesis of syngas rose, the prices of syngas also seemed to incline in the third and fourth quarters of 2022.

Another significant factor in determining the price trend for syngas was the price of coal. The coal prices declined slightly in the third quarter but gained momentum in the later months of the fourth quarter in the Asian market. A similar trend was observed in other regions also. Thus, the price trend of syngas depended upon the market dynamics of coal and natural gas which led to an incline in the prices of syngas.

Analyst Insight

According to Procurement Resource, the price trend for syngas are expected to follow an upward trajectory in the coming months as the prices of feedstock coal and natural gas are inclining globally.
 

Syngas Price Trend For the First Half of 2022

Syngas is produced in-situ in coal refineries when coal is blown through with oxygen and stream. Hence the operating costs of refineries and coal prices impacted the price trend for syngas. The continuing Russia-Ukraine conflict triggered high-cost inflation worldwide. The soaring crude oil and natural gas prices caused the operating costs of industries/refineries to surge.

The absence of precious cargoes from the black sea and Baltic region exposed the market vulnerabilities. The price of coal surged owing to enhanced freight costs and journey time averaging 1990 RMB/ton in the Chinese market. Also, the increased demand for carbon monoxide in the colder region for domestic and industrial heating further affected the prices of syngas.

Procurement Resource provides latest prices of Syngas. 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.