Asian Nonyl Phenol Prices Projects Stability in July 2024 Amidst Market Challenges

Nonyl Phenol prices are expected to remain stable across the Asian market during the second half of July 2024. This is due to minimal procurement in the downstream Nonyl Phenol Ethoxylates and surfactant segments. Additionally, downstream inquiries have been negatively impacted by reduced production rates due to supply chain disruptions in the region. Market players are also cautious about limited crude oil inventories, which have led to lower production run rates and reduced Nonyl Phenol offtakes in the global market.

In July 2024, Asian Nonyl Phenol prices are expected to remain stable following a stagnant trend in June, amid weak downstream demand in the surfactant and Ethoxylates segments. Prices may decline due to ample stock levels and reduced upstream costs. The OPEC basket price for crude oil reached USD 84.77 per barrel in the week ending July 19, 2024, marking a consistent decrease for the second consecutive week. From a supply perspective, the recent conflict in the Middle East has led to attacks on commercial vessels, significantly reducing maritime activity. Additionally, Nonyl Phenol supplies are further impacted by reduced production rates in exporting countries such as Taiwan and South Korea. The supply chain is also affected by planned hunger strikes by port and dock workers at major ports in India.

The regional demand for Nonyl Phenol in July 2024 is influenced by a complex interplay of factors. The ongoing weak market for surfactants in Asia, coupled with reduced production rates, significant stockpiling, and a delicate balance between imports and domestic production, are key elements responsible of shaping the demand landscape for the coming weeks.

Last month, Nonyl Phenol prices fell in Southeast Asia while remaining stable in other parts of Asia amidst weak buying sentiment and disrupted supplies. From a Nonyl Phenol supply perspective, the ongoing Red Sea shipping crisis continues to disrupt global supply chains, resulting in significantly higher shipping costs with little potential for reduction. Major shipping companies have responded by increasing prices across various routes to adapt to these challenges in the Asian region. Producers remain concerned about rising feedstock costs.

As per ChemAnalyst, Nonyl Phenol manufacturers adjust their operations in response to these market conditions, and the consumption of Nonyl Phenol may continue to fluctuate. The observed Nonyl Phenol price stability during the first half of July suggests either a stagnancy in anticipatory low demand or supply constraints, making the market balanced between supply and demand for July 2024.