In Q1 2024, prices of Tetrahydrofuran in major exporting countries in the APAC and Middle East regions showed a slight decreasing trend compared to Q4 2023. This fluctuation during early 2024 could be attributed to various global factors, such as increased supply, decreased demand in the automotive, textile, and pharmaceutical industries, as well as seasonal variations and economic conditions. Additionally, this bullish price trend was also witnessed in major importing countries, including India, South Korea, Vietnam, and the UAE.
In Q2 2024, Tetrahydrofuran prices in major exporting countries like Taiwan, China, and Middle Eastern countries showed fluctuations compared to Q1 2024. These fluctuations could be attributed to recovering demand from key industries such as automotive, textiles, and pharmaceuticals, alongside potential supply constraints and fluctuating production costs. Market dynamics often led to price adjustments as demand stabilized and suppliers responded to changing market conditions.
In Q3 2024, prices of Tetrahydrofuran are experiencing an upward trend across all exporting countries in the APAC and Middle East regions compared to Q2 2024. This bullish price movement is also reflected in major importing countries, including India, South Korea, Vietnam, and the UAE. The rise in Tetrahydrofuran prices is primarily driven by increasing freight charges and other transportation costs, which have affected overall supply chain dynamics. As global demand continues to stabilize, market participants are adapting to these changes, leading to adjustments in pricing.
Looking ahead to Q4 2024, Tetrahydrofuran (THF) prices are expected to show an increasing trend, driven by robust demand recovery in key sectors such as automotive, textiles, and pharmaceuticals. As these industries ramp up production, the heightened demand for THF is likely to exert upward pressure on prices. Additionally, rising raw material costs, particularly for Butadiene and Acetylene, will contribute to the overall increase. Supply chain improvements may help manage some logistical costs, but any disruptions or geopolitical tensions could further drive prices up. Furthermore, stricter environmental regulations may limit production capacity, adding to the upward pricing pressure. Overall, the forecast indicates a positive outlook for THF prices in the coming quarter, reflecting strong market dynamics.