Industrial naphthalene is a critical primary chemical raw material, mainly used in the production of water reducing agents, refined naphthalene, phthalic anhydride, naphthol, naphthylamine, 2,6-dialkyl naphthalene, 2,6-naphthalene dicarboxylic acid, polyethene naphthalate. Chemical products such as glycol ester (PEN) and H acid is raw materials for the production of synthetic fibers, synthetic resins, plasticizers, rubber antioxidants, dye intermediates, pesticides and pharmaceuticals.
Naphthalene-based water reducers are essential additives in the construction industry, known for their ability to enhance concrete workability and strength. However, the price of these water reducers is subject to fluctuation, primarily influenced by the price of industrial naphthalene. In this article, we will explore the correlation between the price of industrial naphthalene and naphthalene-based water reducers, shedding light on the factors that drive their price dynamics.
1. The Role of Industrial Naphthalene
Industrial naphthalene, derived from coal tar or petroleum, serves as the primary raw material for the production of naphthalene-based water reducers. As such, any changes in the price of industrial naphthalene significantly impact the cost of manufacturing these additives. Factors affecting industrial naphthalene prices include the supply and demand dynamics, raw material availability, and global market conditions.
2. Supply and Demand Dynamics
Fluctuations in the supply and demand of industrial naphthalene can directly affect its price. Increased demand, driven by growing construction activities and infrastructure projects, can put upward pressure on prices. Conversely, if the supply of industrial naphthalene is constrained due to production disruptions or limited availability of raw materials, prices may surge.
3. Raw Material Availability
The availability and cost of raw materials required to produce industrial naphthalene, such as coal tar or petroleum, play a crucial role in determining its price. Factors like natural disasters, geopolitical tensions, or changes in extraction and refining processes can disrupt the raw material supply chain, leading to price fluctuations.
4. Global Market Conditions
Industrial naphthalene prices are influenced by global market conditions, including economic factors, trade policies, and currency fluctuations. Changes in these factors can impact the cost of importing or exporting industrial naphthalene, thereby influencing the final price of naphthalene-based water reducers.
5. Impact on Water Reducer Prices
The price fluctuations of industrial naphthalene directly affect the cost of manufacturing naphthalene-based water reducers. Manufacturers often adjust their prices to align with the prevailing market rates of industrial naphthalene. As a result, buyers may experience variations in the prices of water reducers depending on the availability and cost of industrial naphthalene.
Downstream Application Fields of Industrial Naphthalene
The fluctuation of the price of naphthalene-based water reducer is consistent with the rise and fall of the price of industrial naphthalene. Through the trend of the price of industrial naphthalene, it can be inferred that it is the rise and fall of the water reducer.
Entering 2020, my country’s industrial naphthalene price has declined rapidly. After the festival, with the outbreak of domestic and foreign epidemics and the sharp drop in crude oil, industrial naphthalene, phthalic anhydride, o-benzene, and plasticizers have all dropped. In March, the price of naphthalene plummeted even more, showing an almost straight-line decline pattern.
In the first half of 2022, the domestic industrial naphthalene market showed a trend of high and wide fluctuations. The price centre of the leading market frequently fluctuated between 4,800-5,600 RMB/mt, and most of the time, the rising market was challenging to last. Due to the particularity of its bidding and pricing, downstream demand is still the dominant factor for the ups and downs of the naphthalene market.
The price dynamics of naphthalene-based water reducers are intricately linked to the price of industrial naphthalene, their primary raw material. Understanding the factors that drive the price fluctuations of industrial naphthalene helps stakeholders in the construction industry navigate and anticipate changes in the cost of these essential additives. By staying informed about market conditions, buyers and manufacturers can make informed decisions and effectively manage the impact of price fluctuations on their operations.