Hamburg, Germany: The prices of Detergent Alcohol have been consistently dropping in the domestic market of Germany. The decline in consumption from the downstream Personal Care industry has been responsible for the price shift observed in the major surfactants, including Detergent Alcohol. The market players were cautious about a turnaround in demand from the European markets because of the intense competitive pressure stemming from a significant oversupply and a consistently low industry utilization rate, and customers have the freedom to opt for other suppliers whenever there is an effort to increase prices.

As per the ChemAnanlyst Database, the prices of Detergent Alcohol have declined by approximately USD 100 per ton on the week ending 22nd September, compared to the prices observed in early September 2023. The drop in inquiries from the major Personal Care industries has exacerbated the concerns for Detergent Alcohol manufacturers. In addition, the supply-side pressure has been increased owing to the rise in upstream Palm Oil stocks. According to data from the Malaysian Palm Oil Board (MPOB), Malaysia's palm oil reserves reached 2.12 million tons at the conclusion of August, marking a 22.5% increase compared to the preceding month. Malaysia holds a significant share in global Palm Oil production, and an increase in its supply has hampered the market balance. As a result, the manufacturers have opted for price adjustments to the manufacturers of downstream surfactants and Detergent Alcohol.

On the other hand, In the Netherlands, Regarding the production of several commodities involving Detergent Alcohol, manufacturing firms have been operating at reduced rates to maintain market equilibrium. Consequently, manufacturing activities have contracted, and the Purchasing Managers' Index (PMI) has consistently remained within the contraction zone. According to market sources, global industrial production and containerized freight movements have remained slow and uninspiring during the third quarter. Recent data from Statistics Netherlands reveals that manufacturing production in the Netherlands experienced a significant contraction of 8.3% year-on-year in July 2023. This marks a further decline from the previously adjusted 7.2% decrease in the previous month, resulting in weakened market sentiments for Detergent Alcohol throughout Europe.

According to the pricing intelligence of ChemAnalyst, the prices of Detergent Alcohol might progress in the southward direction in the European market. The persistent inflationary pressures are expected to impact the purchasing power of the end-use industries, leading to a drop in Detergent Alcohol market transactions. In addition, the over-availability of upstream Palm Oil is also likely to put significant pressure on the pricing dynamics of Detergent Alcohol in the forthcoming weeks.