Hamburg, Germany: In a significant development, prices of Fatty Alcohol Ethoxylates surged in the European market throughout April 2024. This increase has been primarily driven by a notable increase in upstream Palm Oil prices and a reduction in finished goods supplies, creating upward pressure on Fatty Alcohol Ethoxylates price dynamics. The slowdown in manufacturing activities brought on by persistent inflationary pressures and tight financial conditions has impacted the pricing dynamics of several chemicals, including Fatty Alcohol Ethoxylates.

Specifically in Germany, the domestic market witnessed a substantial price hike for upstream Fatty Alcohol in the week ending April 26th. This surge can be attributed to a tight upstream Palm Oil market, where prices have been on the rise. Benchmark crude palm oil (CPO) spot prices escalated during the first quarter of 2024, surpassing USD 900 per ton by March 2024 from under USD 800 per ton in December 2023. This uptick is a result of relatively low palm oil inventories in major producers Indonesia and Malaysia, coupled with market concerns about global vegetable oil output.

Furthermore, increased demand from the surfactant and detergent industries has further fueled the market growth of Fatty Alcohol Ethoxylates. Market transactions for Fatty Alcohol Ethoxylates have improved, and manufacturing conditions in Germany have been notably impacted by high inflationary pressures. However, there has been a decrease in transit times, stabilizing the movement of finished goods across the market. Additionally, regarding energy inputs, OPEC and its allies have extended production cuts into the second quarter of the year as anticipated, impacting Crude Oil prices. However, the market is currently challenged by ample supply from non-OPEC producers and uncertain demand from industrialized economies that are either experiencing slow growth or are in recession.

On the other hand, demand for Fatty Alcohol Ethoxylates from the Chinese market has also been reinforced, as reported by market participants. In addition, fiscal stimulus measures implemented in October and March have played a crucial role in offsetting the effects of declining manufacturing activity and sluggish services. These measures aimed to boost economic activity and support businesses and individuals affected by the slowdown. By injecting funds into the economy, the government hoped to stimulate demand, encourage investment, and create a more favorable environment for economic growth, which would contribute to easing the market sentiments for Fatty Alcohol Ethoxylates.

According to the pricing intelligence of ChemAnalyst, prices of Fatty Alcohol Ethoxylates might settle higher in the European market. The increase in upstream Fatty Alcohol prices, coupled with low supplies, is likely to keep the Fatty Alcohol Ethoxylates market sentiments buoyant in the forthcoming weeks.