MUMBAI (ChemAnalyst)-Post escalating for more than two months in 2022, 2-Ethyl Hexanol has been declining in the Indian market since March 2022. As per the ChemAnalyst data, 2-Ethylhexanoic acid prices have tumbled by a further 0.6% during the second half of April, portraying wavering demand fundamentals for the product in the domestic market amidst high input costs. Even though demand for Oxo Alcohols remains high during summer, bolstered by lifted construction activities in the domestic market.

As per the ChemAnalyst analysis, demand fundamentals for the construction and automotive industry have been firm since the start of this year, while rising raw material costs compelling key players to keep on raising their offers in order to sustain their profits. 2-Ethylhexanol is a widely used product in the paints & coating and plasticizer industries, which gets support from the domestic construction sector and automobile sector.

Recently, several Indian automobile companies revealed the sales growth during FY 2022, where despite the growing sales in some utility vehicle sections, rising raw material costs forced them to raise their vehicle prices in the country. Indian key players like Andhra petrochemicals and BPCL (Bharat Petroleum Corporation limited) have been in a dilemma about their oxo alcohols prices in India, as by raising their product prices offtakes may fall, while the upstream cost pressure been consistent since a long time.

Russia Ukraine conflict has not been showing any sign of resolution while stirring global market dynamics. Indian key refiners are continuously trying to close more crude oil deals with Russia, while the government is open take independent decisions despite political pressure from the USA. These initiatives have been taken into account to ease the price burden on producers and eventually provide some relief to consumers. However, as per the latest insights, under the influence of high raw material costs amidst stable offtakes, Indian Oxo Alcohol manufacturers may raise their offers again in the domestic market.