Hamburg, Germany: After witnessing a bearish run in the past few weeks, the prices of Detergent Alcohol have started to inch higher in the European market. Despite average demand from the downstream Personal Care industries, the Detergent Alcohol process remains upbeat in the regional markets this week amidst an increase in the prices of upstream Palm Oil. As per market participants, traders are optimistic about the demand for Detergent Alcohol from China, a key market, as the country prepares for the Lunar New Year festival in mid-February, supporting the uptrend observed in the pricing dynamics of Detergent Alcohol.

The ChemAnalyst database has demonstrated that the prices of Detergent alcohol have escalated by USD 60 per ton in the week ending on 19th January compared to the prices observed in the Q4-end of 2023. The rise in upstream Palm Oil prices has been translated into price gains for Detergent Alcohol manufacturing costs. As per market sources, to safeguard the profit margins of the manufacturing firms, the hiked prices have been passed on to terminal consumers.

On the other hand, continued assaults by Iranian-backed Houthi militants in the Red Sea have led to disturbances in shipping through the Suez Canal, a critical passage handling 12% of global container traffic. Prolonged disruptions present a new peril for the European economy, potentially jeopardizing central banks' plans to decrease interest rates. For the last few quarters, the main economic powerhouse of Europe, Germany, has been battling persistent inflationary pressures and volatile energy costs. As reported by the Federal Statistical Office, Germany experienced a year-on-year inflation rate surge to 3.7% in December, marking an uptick from the 3.2% recorded in November. This notable increase was predominantly attributed to a 4.1% upswing in energy prices, influenced by a government subsidy. The heightened inflationary pressures have implications for the purchasing power of industries utilizing Detergent Alcohol as an end-use component.

According to the pricing intelligence of ChemAnalyst, in 2024, the Detergent Alcohol market is expected to continue its slow growth due to uncertainties that are delaying recovery. Downstream consumers are saving more, and companies are hesitant to invest. The uncertainties surrounding the German federal budget are also playing a role in this trend. Moreover, weak foreign demand is adding to the Detergent Alcohol market's challenges. However, if economic and geopolitical risks diminish over the year and inflation decreases, there could be a potential increase in economic growth, which could strengthen the Detergent Alcohol market fundamentals in the European market. On the other hand, the anticipation of heightened consumer activity associated with the Lunar New Year festivities in China could potentially drive up sales and positively impact market conditions for Detergent Alcohol in the forthcoming weeks.