In Asia, the price of Fatty Alcohol Ethoxylates has been declining this week due to declining feedstock fatty alcohol C12-14 costs and a slowing Chinese economy. The removal of Indonesia's domestic market obligation (DMO) export restrictions, which got replaced by higher levies on crude palm oil (CPO) and palm kernel oil (PKO), has eased feedstock fatty alcohols C12-14 supply from Indonesia. Currently, the maximum tax rate is USD 375 / ton. Both levy and customs duty applies to exports of CPOs and PKOs. Prices remain at USD 200/ton for CPOs and USD 245/ton for PKOs. In countries like India, the March feedstock Palm Oil imports increased by approximately 21% in March, when the traders sought alternatives to sunflower oil, which was no longer available from Ukraine.

In addition, China's coronavirus outbreak has been putting a strain on the demand fundamentals. Full and partial lockdowns were implemented in several cities in the provinces of Jilin, Hebei, Shandong, Guangdong, and Shanghai as part of China's zero-COVID-19 strategy. Following new lockdown restrictions to contain the highly infectious coronavirus Omicron strain, factories in China have been shut down or are operating at reduced rates. In contrast, logistical and transportation concerns have caused delays in the shipments and deliveries. According to the ChemAnalyst database, spot prices for Fatty Alcohol Ethoxylates mols 7, 9 declined by USD 50/tonne to USD 1,850-1,900/tonne CIF (cost, freight, and insurance) in China in the last week for drummed cargoes.

Personal care items, including cosmetics, fragrances, hair care, coloring products, sunscreen, toothpaste, bathing, nail care, and shaving products, constitute the most significant end market for oleochemicals. Hence, consumer spending on these products has declined with rising inflation. Consumers are more likely to prefer lower-cost brands when it comes to products like soap, shampoos, conditioners, body wash, and toothpaste.

As per ChemAnalyst," The prices of Nonylphenol Ethoxylates in Asia will further ease in the coming weeks with robust feedstock Palm Oil imports from Indonesia, the world's largest Palm oil producer, followed by Malaysia. Also, the lockdowns in China continue to weigh on end-user demand fundamentals."