Beta Naphthol Pricing Assessment
UNSPC: 12352100

• Russia-Ukraine Conflict (2022):   The conflict has disrupted supply chains, particularly for raw materials sourced from the region. This has led to shortages and increased production costs for many chemical compounds, including beta-naphthol. The prices of raw materials, such as naphthalene, which is used to produce beta-naphthol, have increased due to supply constraints. As a result, manufacturers have had to raise their prices to maintain profitability.
• Texas Winter Storm (2021): The storm disrupted the supply chains for raw materials needed to produce beta-naphthol, particularly naphthalene. With suppliers unable to operate, the availability of these essential inputs diminished, driving up costs. Transportation infrastructure was also affected, complicating logistics and leading to delays. The higher costs of shipping and logistics contributed to the overall price increases for beta-naphthol.
• COVID-19 Pandemic (2020):  Lockdowns and restrictions imposed globally led to significant disruptions in manufacturing and logistics. Many chemical plants faced operational challenges, which reduced the production capacity of beta-naphthol and its raw materials. The pandemic affected the supply of raw materials, such as naphthalene, used in the production of beta-naphthol. This scarcity increased costs, as suppliers struggled to meet demand while adhering to safety protocols.
• Geopolitical Tensions (2018-2019): The U.S.-China trade war, initiated in 2018, led to the imposition of tariffs on various chemical imports. This affected the pricing of raw materials essential for beta-naphthol production, as manufacturers faced increased costs that were often passed down to consumers. Geopolitical uncertainties contributed to overall market volatility, with fluctuating prices as manufacturers adjusted to changing costs and supply conditions. Procurement heads had to navigate this instability, often leading to increased pricing for beta-naphthol.
• Shale Gas Boom (2010): The shale gas boom led to a surge in natural gas production, which lowered the cost of natural gas and its derivatives. This increased availability of feedstocks, particularly ethane and propane, benefited the production of various chemicals, including those used to produce beta-naphthol. As natural gas became more affordable, production costs for petrochemical manufacturers decreased. This reduction often translated into lower prices for chemical products, including beta-naphthol, as manufacturers passed on savings to customers.
• Global Financial Crisis (2008-2009): The financial crisis led to a sharp decline in economic activity worldwide, resulting in reduced demand for various chemical products, including beta-naphthol. Industries such as textiles and automotive, which are key consumers of beta-naphthol, scaled back production significantly. In response to falling demand, prices for many chemicals initially dropped. However, as manufacturers adjusted to the new economic conditions, beta-naphthol prices became volatile, reflecting both demand changes and supply constraints.
• Hurricane Katrina (2005):  The hurricane caused extensive damage to chemical plants and infrastructure along the Gulf Coast, a major hub for chemical manufacturing. This led to temporary shutdowns and disruptions in the production of various chemicals, including beta-naphthol. Transportation routes were severely impacted, hindering the movement of raw materials and finished products. This disruption affected the availability of naphthalene, a key raw material for producing beta-naphthol, leading to shortages in the market.

These events underscore the Beta Naphthol market’s vulnerability to global disruptions and highlight the need for continuous monitoring of supply-demand dynamics.