Green Hydrogen prices shifted sentiments during the 1st quarter of 2023. At the beginning of the quarter, prices plunged noticeably amid a shift in demand-supply dynamics and a consequent increase in stocks. The trend persisted in the mid-quarter, and prices again fell in the region due to declined orders from the European importers due to the shifted interest of buyers towards conventional grey Hydrogen as it was available in excess quantity and at cheap costs due to the surplus availability of Natural Gas stocks. During the final month of Q1, prices rebounded amid affected production rates and increased orders from importers to reduce carbon emissions as chemical manufacturers are seeing the direct use of Green Hydrogen in fuel cracker furnaces rather than using Natural Gas.
The Green Hydrogen price trend showcased mixed sentiments in the Asian region during Q1 of 2023. Initially, the prices rose amid an increase in demand as the government focused on producing more green Hydrogen than conventional ones. The offtakes improved from the downstream industries and energy sector. However, price movement shifted during the mid-quarter, and prices remained stable amid stable offtakes and moderate consumption rates. Towards the end of the quarter, the upstream costs reduced with the temperature rise and eased the cost support. Simultaneously, orders for Green Hydrogen fell slightly from the energy sector with the arrival of the spring season.
In the European region, the Green Hydrogen prices dived during the Q1 of 2023. Initially, prices plummeted due to a decrease in upstream energy costs for electrolysis which eased the cost support. During the mid-quarter, the price trend improved slightly as the demand was consistent from the energy sector. Towards the end of 1st quarter, downstream Green Ammonia prices fell amid depressed demand from fertilizer producers during the quarter amid the shifted interest of buyers towards conventional grey Hydrogen as it was excessively available and at reduced costs due to the surplus availability of Natural Gas stocks. In the final month of Q1, prices again plunged amid weak offtakes and surplus supplies.
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