During the first week of June 2024, the global 2-Ethylhexanoic Acid (2-EHA) market exhibited divergent trends between the Asian and Western regions. Notably, prices in the Asian market experienced a notable decline, while conversely, prices in the Western market saw an upward trajectory during the same period. The significant decline in prices in the Asian market can be attributed to subdued demand from the automotive paints and coatings sector, a key end-user industry for 2-EHA in the region. In contrast, the Western market witnessed an increase in prices for 2-EHA over the same period. This price surge was primarily driven by a resurgence in demand from the automotive paints and coatings sector in Western markets. Increased activity and demand from this sector have bolstered consumption of 2-EHA, leading to higher prices.

During the first week of June 2024, the Chinese 2-Ethylhexanoic Acid market experienced bearish market sentiments during the inaugural week of June 7^th. The declining price of essential raw materials Propylene and Crude Oil by 2.5% and 4% respectively prompted lower production costs thus exerting downward cost pressure on 2-EHA prices. Further, the persistent weak performance of the essential downstream paints and coatings industry added additional downward pressure on 2-EHA prices.  This muted demand can be partially attributed to the seasonally low sales expectations due to extreme heat conditions affecting the region. Further, as indicated by CPCA China-made electric vehicles dropped 6.6% from a year earlier to 72,573 units in May, extending a year-on-year decline for a second month. Following an 18% decline in April, which offset a 0.2% gain in March, the downturn occurred due to a significant reduction in Model Y production at Tesla's Shanghai plant.

On the other hand, the German market for 2-Ethylhexanoic Acid (2-EHA) experienced a slight 0.3% price increase, a deviation from preceding trends despite declining costs of essential raw materials like Crude Oil and Propylene. This rise was primarily driven by resurging demand from the automotive paints and coatings sector, which is a major end-user of 2-EHA. The robust performance of the automotive industry in key European markets such as Spain, Germany, France, and Italy contributed significantly to this demand growth. In Germany specifically, new car registrations surged, with petrol-powered vehicles showing a notable increase, reflecting strong market demand for automotive coatings that utilize 2-EHA.

Simultaneously, the European market benefited from a sufficient supply of domestically produced 2-EHA following OQ Chemicals' decision to lift its force majeure declaration on products from its German plants in Oberhausen and Marl. This development restored normal production levels, ensuring uninterrupted supply operations and availability of 2-EHA in the market.