The chemical industry is an ever-changing network of raw materials, processing, and logistics. As a Supplier or a Buyer, understanding the shifts in demand for specific substances is crucial to staying competitive and ensuring smooth operations. At CheMondis, we’ve recently analyzed a notable trend—a surge in the demand for certain key chemicals from Q1 to Q2. While these shifts might seem subtle at first, they reflect deeper trends in industrial activity and demand change.
This demand change shows important shifts in the market demand curve for several essential chemicals. In this blog article, we’ll dive into the substances that saw increased demand. Furthermore, we will explore the substances that might help to detect the underlying factors driving these shifts. By understanding these changes in demand, Suppliers and Buyers of the industry can better prepare for future fluctuations. Which allows them to focus on emerging opportunities.
Key Substances with Increased Demand Between Q1 and Q2
Urea, a nitrogen-based compound, experienced a significant increase in demand from Q1 to Q2. As one of the most widely used nitrogen fertilizers globally, the market demand curve for urea closely follows agricultural cycles, showing spikes during the planting season, which generally begins in Q2. The increased demand for urea in Q2 can be attributed to its critical role in improving crop yields. Farmers rely heavily on this compound to meet global food production needs. Changes in demand for urea could also be tied to sustainable farming practices .This shift reflects the broader demand change in agricultural chemicals.
Propylene Glycol, widely used in antifreeze, pharmaceuticals, cosmetics, and food additives, saw a sharp change in demand between Q1 and Q2. This reflects broader shifts in the market demand curve, which may be influenced by both seasonal trends and industrial recovery after the global pandemic. The increased demand in Q2 can be linked to its use in cooling and antifreeze solutions, particularly as warmer months approach. The recovery of the personal care and food industries is driving demand for propylene glycol. Due to consumers turn to processed foods and cosmetics. This demand change highlights how industries are responding to both economic recovery and seasonal needs.
Glycerol (or glycerin) saw one of the sharpest increases in demand from Q1 to Q2. Widely used in cosmetics, pharmaceuticals, and food industries, glycerol’s change in demand is indicative of a larger market trend toward sustainability and health-conscious products. Glycerol’s rising demand curve in Q2 reflects its critical role in moisturizing creams, medicinal syrups, and as a biofuel product. Moreover, as consumers continue to prioritize self-care and health, the market demand curve for glycerol has shifted upward, reflecting sustained interest in products that use glycerol.
Potassium Hydroxide, used in producing soaps, detergents, and alkaline batteries, also saw a steady demand change from Q1 to Q2. The hygiene and cleaning industries are driving this demand as consumer priorities have shifted towards cleanliness and sanitation during and after the global pandemic. Its use in batteries and energy storage solutions also highlights how the market demand curve is evolving as industries move toward greener technologies. The growing focus on sustainability is a major driver of this change in demand. It positions potassium hydroxide as an increasingly vital commodity in the modern industrial landscape.
What Does the Market Demand Curve Show?
The market demand curve for these substances shows how industrial activities, consumer behavior. Additionally seasonal factors interact to shape overall demand. In the case of urea and Propylene Glycol, the curve may reflect sharp increases during Q2 as sectors like agriculture and manufacturing hit their peak production cycles. Moreover, for glycerol and potassium hydroxide, the demand curve suggests sustained growth, driven by post-pandemic recovery and the global shift toward sustainability.
What Does Change in Demand Mean for Businesses?
For the businesses of chemical industry who are reliant on these substances, understanding the change in demand and shifts in the market demand curve presents both opportunities and challenges. The rising demand for chemicals can lead to increased revenue for Suppliers who are prepared to expand their customer and product portfolio base. However, higher demand may also lead to supply constraints or price increases.
Strategies for Navigating the Market:
1. Monitor Demand Changes:
Staying informed about shifts in the market demand curve will help businesses anticipate fluctuations and make proactive adjustments to their procurement strategies.
2. Diversify Supply Chains:
Diversifying Suppliers and establishing reliable partnerships are critical for mitigating the risks associated with supply chain disruptions. CheMondis helps you establish a relationship with trusted partners in the chemical industry.
3. Invest in Sustainable Solutions:
As sustainability becomes a driving force in the global market, investing in green technologies and sustainable practices is essential. Businesses that respond to the change in demand for eco-friendly chemicals will be well-positioned to thrive in the evolving landscape. You can add sustainability information to your products on CheMondis and let the Buyers know that you are contributing to a more sustainable future.
The surge in demand for urea, propylene glycol, glycerol, and potassium hydroxide from Q1 to Q2 reflects deeper market trends. Hence, understanding these demand changes and what the market demand curve shows, Suppliers and Buyers of CheMondis can better prepare for fluctuations and capitalize on opportunities. The increased focus on sustainability, post-pandemic recovery, and seasonal cycles are key drivers of this demand shift.
At CheMondis, we continue to monitor these trends closely to help businesses stay agile and informed. As industries evolve, understanding the change in demand for key chemicals will be crucial for maintaining a competitive edge in this dynamic market.
CheMondis proudly presents a new feature for a better onboarding experience. The Analytics Feature is a cutting-edge tool designed to provide businesses with comprehensive insights into Buyer behavior and market trends. Suppliers now have the chance to see Search Impressions. Hence, be the ones to reach out to Buyers based on their search.
With its revamped interface, users can now navigate the feature with ease and extract useful information from the data at their disposal. You can download the insights as an Excel sheet and share it with the rest of your team.
A standout feature of this update is the implementation of an enhanced filtering section, designed to narrow down and deliver more tailored results. This functionality enables users to refine their search criteria based on specific parameters. Such as industry, location, and product type, facilitate more targeted outreach efforts, and maximize possible leads.
By using the filters, you can now easily reach out to the Buyers with whom you had no conversation with so far and start building a business relationship. It is important to note that your filter preferences stay until you clear them.
Interactions and Search Impressions
With the new Analytics Feature, Suppliers will be able to see Interactions and Search Impressions, stating how many times their product showed up through search in CheMondis marketplace.
Compared to Interactions, Search Impressions offer a deeper analysis of the Buyer profiles of those who interacted with your product. One notable outcome is the transparency in which Buyers interact with your company profile.
Search Impressions and its filter options
The difference between Interactions and Search Impression Unfolds
Interactions is all activity on your Product Details Pages and Company Profiles whereas Search Impressions gives you the number of times your products appeared in a Buyer’s search. While Impressions can be analyzed for the last 30, 60, and 90 days, Search Impressions also allow you to narrow it down to the last 7, 3, or 1 day. This makes it easier for you to keep an overview if you check your Search Impressions frequently.
Another important difference is that, by using Search Impressions Suppliers can see the product name, the search terms used whether it is free text or substance search, the number of impressions each product got, and the last time it was searched.
Interaction Details
Search Impression Details
Key Benefits of the Analytics Feature in a Nutshell
Traffic Insights: With Analytics, users gain visibility into the names of Buyers who have shown interest in their brand or products. This invaluable information empowers businesses to initiate direct communication with potential clients, fostering meaningful engagements and nurturing valuable connections.
Performance Tracking: Monitoring how Buyers interact with your brand and products is crucial for evaluating your marketing strategies and finding areas for improvement.
Strategic Optimization: By using the insights gleaned from the Analytics Feature, businesses can refine their strategies, optimize their offerings, and enhance their online presence, thereby maximizing their competitive advantage in the marketplace.
Maximize Opportunities: Identify the latest trends to stay ahead of market demands. Using the conversation feature can help to establish the first interaction between Suppliers and Buyers and allows you to create new leads.
Tutorial Video: Mastering the Analytics Feature
To help you get the most out of Analytics, we’ve created a detailed tutorial video that walks you through its features and functionalities:
Introduction video to our new Analytics feature
Interview with David Kunisch
In this part of the article, we will delve into the interview conducted with David Kunisch, our Product Manager at CheMondis.
It is important for CheMondis users to understand the importance of the Analytics Feature from his point of view and what was influential to this update. Through our conversation, David articulated the key functionalities and benefits of this feature.
Q: What is the most significant functionality of the Dashboard?
Suppliers can proactively reach out to buyers based on their interests, which product they are interested in, and what they are looking for. Therefore, Suppliers have the chance to reach out to new leads in their own time.
Q: How would you describe the significance of the Analytics Feature for users of CheMondis?
The Analytics feature is crucial because it allows Suppliers to reach out to Buyers. The increasing trend of Supplier outreach since the launch is seen through data analysis. Approximately 90% of this outreach can be attributed to the insights provided by the Analytics Feature.
Q: What was the reason for implementing the Analytics Feature?
The Analytics feature was developed in response to customer feedback, it started with our Customers asking to see the data CheMondis was gathering. With the implementation of the Analytics feature, we see the importance of customer feedback as this feature is the direct result of it.
Chemical safety regulations have undergone significant evolution, particularly over the last few decades. This evolution has been largely driven by the growing awareness of the potential hazards posed by chemicals to both human health and the environment. The REACH regulations, instituted by the European Union in 2007, represent a landmark development in this field. REACH stands for Registration, Evaluation, Authorisation, and Restriction of Chemicals. The primary goal of REACH is to ensure a high level of protection for human health and the environment from the risks posed by chemicals. It is also aimed at enhancing innovation and competitiveness within the chemical industry.
In-depth Analysis of REACH Regulations
The REACH regulation imposes comprehensive obligations on companies to manage the risks associated with the chemicals they produce and market in the EU. This includes a mandatory registration for all chemicals manufactured or imported in quantities exceeding one ton per year. The registration process involves a detailed evaluation of the substance, including its properties, uses, and potential hazards. Particularly hazardous substances are subject to additional scrutiny, which may include a requirement for authorization before they can be used. The regulation also empowers authorities to restrict the use of certain chemicals that are deemed too risky.
Case Studies
Company A’s Compliance Journey: This section could elaborate on how Company A, a mid-sized paint manufacturer, adapted its operations to comply with REACH regulations. Initially facing challenges with the extensive data requirements for registration, Company A invested in a comprehensive chemical management system. This system not only streamlined the compliance process but also improved their overall safety protocols and environmental footprint.
Impact of Non-Compliance: In contrast, another case could focus on a textile company that faced significant penalties due to non-compliance with REACH. This company, unaware of the full extent of its obligations under REACH, failed to register a key dye used in its products. The resultant legal actions led to hefty fines and a temporary shutdown of its operations, underscoring the importance of thorough compliance.
Detailed Discussion on Each SVHC
The classification of Substances of Very High Concern (SVHCs) is a cornerstone of the REACH regulations. SVHCs are substances that have properties that might cause cancer, mutate DNA, or impair fertility. They also include substances that persist in the environment and accumulate in living organisms, posing long-term risks to the health of humans and wildlife. For example, a detailed discussion on a specific SVHC, like Bisphenol A (commonly used in plastics), could include its widespread use, the health risks associated with its exposure, and the industry’s response to finding safer alternatives.
Compliance Strategies
Implementing compliance strategies for REACH regulations can be complex but crucial for businesses. This section could provide a step-by-step guide on achieving compliance. For instance:
Inventory and Data Collection: Companies must start by taking inventory of all chemicals used or produced in their operations and gather comprehensive data on these substances.
Risk Assessment and Management: Assessing the risks associated with each substance and developing management plans to mitigate these risks is essential. This could include substituting hazardous substances with safer alternatives.
Documentation and Communication: Maintaining detailed documentation for compliance and communicating safety information along the supply chain ensures transparency and regulatory compliance.
Global Perspective on Chemical Safety
The EU’s REACH regulations have set a high standard for chemical safety, influencing policies worldwide. Countries like Canada, South Korea, and Japan have adopted similar approaches, emphasizing the need for more rigorous chemical management. For instance, South Korea’s Act on the Registration and Evaluation of Chemicals (K-REACH) mirrors many aspects of the EU’s REACH, focusing on the registration and evaluation of chemicals to ensure safety and environmental protection. This section can elaborate on these international parallels, offering a global view of chemical management strategies.
Future Trends in Chemical Safety
The future of chemical safety is likely to see tighter regulations and a shift towards green chemistry. Innovations in biodegradable materials and non-toxic alternatives are gaining momentum. Technological advancements such as AI and big data analytics are expected to play a significant role in chemical assessments, providing more accurate risk analyses and enabling predictive modeling for chemical interactions. This section can discuss these trends, offering insights into how the field of chemical safety might evolve.
Interactive Elements
REACH Regulation Quiz: To test readers’ understanding of REACH, the blog includes an interactive quiz covering key aspects like SVHC identification, compliance requirements, and safety measures. The quiz offers immediate feedback, helping readers gauge their knowledge and learn from any misconceptions.
Infographic on Chemical Registration Process: A visually appealing infographic simplifies the complex process of chemical registration under REACH. It breaks down the steps from data collection to risk assessment and submission, providing a clear and concise overview suitable for both experts and novices.
Interactive Case Study Analysis: The blog features a virtual case study of a company navigating REACH compliance. Readers can interact with different scenarios, making decisions on compliance strategies and seeing the potential outcomes. This element not only educates but also immerses the reader in the practicalities of REACH compliance.
REACH Compliance Checklist Tool: An interactive checklist tool assists companies in self-assessing their compliance with REACH regulations. Users can input specific details about their operations and receive a customized checklist of necessary actions and considerations.
FAQ Section
An FAQ section can address common queries about REACH, providing clear, concise answers. Questions could range from basic ones like “What is REACH?” to more specific queries like “How does REACH impact small and medium-sized enterprises?” and “What are the steps a company should take if its product contains an SVHC?”
What is REACH? REACH is a regulation of the European Union, adopted to improve the protection of human health and the environment from the risks posed by chemicals. It stands for Registration, Evaluation, Authorisation, and Restriction of Chemicals.
Who is affected by REACH? REACH affects all companies that manufacture, import, or use chemicals in their business processes within the European Union. This includes not just chemical producers but also companies in various industries like electronics, automotive, textiles, and consumer goods.
What are Substances of Very High Concern (SVHCs)? SVHCs are chemicals that have potentially serious impacts on human health or the environment. They include substances that are carcinogenic, mutagenic, toxic to reproduction, or persistent and bioaccumulative.
What are the obligations of companies under REACH? Companies must identify and manage the risks linked to the substances they manufacture and market in the EU. They must demonstrate how the substance can be safely used and communicate risk management measures to users. If a substance is particularly hazardous, companies must also submit a plan for its substitution.
How does a company register a chemical under REACH? Companies need to gather data about the chemical’s properties, uses, and potential risks. This information is submitted to the European Chemicals Agency (ECHA) through a registration dossier. The registration process involves collaboration with other companies who are registering the same substance.
What happens if a company does not comply with REACH? Non-compliance with REACH can result in substantial fines, legal action, and reputational damage. Authorities in EU member states are responsible for enforcing REACH, and penalties vary by country.
How does REACH impact small and medium-sized enterprises (SMEs)? SMEs are subject to the same REACH regulations as larger companies. However, the regulation recognizes the unique challenges faced by SMEs and provides some support, such as reduced fees for registration and access to guidance materials.
Can non-EU companies be REACH-compliant? Non-EU companies cannot register substances themselves under REACH but they can appoint an EU-based ‘Only Representative’ to fulfill their obligations under the regulation.
What are the steps a company should take if its product contains an SVHC? If a product contains an SVHC in a concentration above 0.1% weight by weight, companies must inform their customers and consumers upon request. They also need to notify ECHA if the total amount of the SVHC exceeds one tonne per year.
Are there any tools or resources to help companies comply with REACH? Yes, there are various tools and resources available. ECHA provides extensive guidance documents, IT tools for submitting registration dossiers, and databases for information on chemical substances. Additionally, many industry associations and consultancies offer support and advice on REACH compliance.
Conclusion
Conclude by emphasizing the crucial role of REACH regulations in promoting safer chemical practices and protecting environmental and human health. Highlight the ongoing need for vigilance, adaptation, and proactive engagement from all stakeholders – including industry, regulators, and the public – in the pursuit of a safer, more sustainable future.
REACH (Registration, Evaluation, Authorization, and Restriction of Chemicals) is the European regulation. It addresses the production and use of chemical substances and their potential impacts on both human health and the environment. The regulation also established the European Chemical Agency (ECHA), which manages the technical, scientific, and administrative aspects of REACH.
REACH describes substances of very high concern (SVHC). Producers, importers or suppliers of products that contain SVHC-listed substances are obliged to notify ECHA when:
working in Europe,
and the total quantity used is more than one tone per year,
and/or the SVHC is present at more than 0.1% of the mass of one produced object.
ECHA has included 6 new substances to the SVHC list for authorization, extending it to a total of 197 substances. Four of the substances, polycyclic aromatic hydrocarbons, were added to the SVHC list with the involvement of the Member State Committee (MSC) after public consultation. More information about the substances and reasons for their inclusion on the SVHC list are informed below.
Substances added to the SVHC list
Pyrene
Reason for inclusion: Substance is toxic, very persistent and very bioaccumulative in accordance with the criteria set out in Annex XIII.
CAS No.: 129-00-0; 1218-52-1
Phenanthrene
Reason for inclusion: Substance is very persistent and very bioaccumulative in accordance with the citeria set out in Annex XIII.
CAS No.: 85-01-08
3-Benzylidenecamphor
Reason for inclusion: Substance is toxic for reproduction (article 57c).
The chemical industry supplies raw materials to almost every other industry and is essential for economic competitiveness. Although essential, chemicals must be properly managed to avoid damage to human health and the environment. Each country or economic union has a specific way of regulating and controlling chemicals. Within the European Union, we have REACH.
REACH stands for Registration, Evaluation, Authorization, and Restriction of Chemicals. It is a European Union regulation that addresses the production and use of chemical substances, and their potential impacts on both human health and the environment. REACH came into force on the first of June 2007 and has been described as the most complex legislation in the European Union’s history.
REACH AIM: Improve the protection of human health and the environment from the risks that can be posed by chemicals and promote alternative methods for the assessment of hazards of substances.
How does REACH work?
REACH establishes procedures for collecting and assessing information on the properties and hazards of substances. The regulation has been established by the European Chemicals Agency (ECHA), which manages the technical, scientific, and administrative aspects of REACH.
ECHA receives and evaluates individual registrations for their compliance. Further EU member states evaluate selected substances to clarify initial concerns for human health or for the environment. Authorities and ECHA’s scientific committees assess whether the risks of substances can be managed.
To comply with the regulation, companies must identify and manage the risks linked to the substances they manufacture and market in the EU. They must demonstrate how the substance can be safely used, and they must communicate the risk management measures to the users.
REACH obligations are not only complied with manufacturers of chemical substances, but also to all companies which deal with preparations of the product or articles that contain those substances. For this reason, REACH has an impact on a wide range of companies across many sectors.
If you are an importer of chemical and non-chemical products (such as paints, clothes, furniture, plastic, etc.) you need to ensure that all components should be registered under REACH. Companies established outside the EU are not bound to the obligations of REACH.
The responsibility for fulfilling the requirements of REACH, lies with the importers established in the European Union, or with the only representative of a non-EU manufacturer established in the European Union. REACH applies to substances manufactured or imported in quantities of 1 tonne or more per year, per manufacturer/importer. Some substances are excluded from all or certain aspects of REACH.
Total exemptions
Radio-active substances
Substances under customs supervision
Substances used in the interest of defense and covered by National exemptions
Waste
Non-isolated intermediates and transported substance
Partial exemptions
Substances used in food
Medicinal products;
Substances included in Annex IV of the REACH Regulation which are known to be safe (such as Nitrogen)
Corn
Oil
Substances covered by Annex V of the REACH Regulation
Substances which occur in nature, if they are not chemically modified
Minerals
ores, ore concentrates
cement clinker
natural gas
liquefied petroleum gas
natural gas condensate, process gases and components thereof
crude oil, coal, coke
Substances occurring in nature other than those listed under paragraph 7, if they are not chemically modified unless they meet the criteria for classification as dangerous according to Directive 67/548/EEC. (Examples include beeswax and some fibers)
Polymers (however, monomer shall be registered)
Recycled or recovered substance already registered
Re-imported substance
Substances used for the purposes of product and process-oriented research and development (PPORD) Note: PPORD notification shall be submitted instead.
China, the largest chemical manufacturer in the world, has also moved towards a more efficient and coherent system for the control of chemicals in compliance with GHS. Balkan countries such as Croatia and Serbia are in the process of adopting the EU REACH system under the auspices of the EU IPA program.
Switzerland has moved towards the implementation of REACH through partial revision of the Swiss Chemical Ordinance. Turkey has also paved the way to adopt REACH with the new Chemicals Management Regulation.
Transported isolated intermediates
Manufacturers or importers of transported isolated intermediates in quantities of 1 tonne or more per year need to submit a registration dossier(unless the substance is exempted from the registration provisions). The information to be submitted for standard registration purposes is listed under article 10.
However, a registrant of transported isolated intermediates can provide reduced registration information according to article 18 (2) if he confirms that he is manufacturing and/or using the substance under strictly controlled conditions and if he confirms himself or states that he has received confirmation from the user that the substance is used under strictly controlled conditions as described under article 18 (4).
In that case, both the registrant and the users are each liable for their own statement regarding the strictly controlled conditions.
Article 18 on CheMondis
As described in our Terms & Conditions, suppliers must comply with the regulations in order to sell their products on CheMondis. Next to safety and technical datasheets, users can add other relevant information about their products.
Further, suppliers are requested to tick a specific box indicating that their products are regulated by article 18, which covers the registration of transported isolated intermediates.
Our chemical team constantly re-checks all product information, including the indications about article 18. Nevertheless, CheMondis cannot be heald liable for all information provided by third-party-sellers.
Thank you for taking the time to read the CheMondis Blog.
