The opening week of February 2025 saw 2-EH (2-Ethylhexanol) prices stabilizing globally, supported by price hikes from OQ Chemicals and Perstorp Oxo-AB for shipments beginning February 1, 2025. Supply conditions varied, with ample availability in the U.S. and Asia, while Europe faced tightening supply.

OQ Chemicals raised prices of 2-EH by USD 100/MT in the U.S., EUR 100/MT in Europe, and USD 105/MT in the rest of the world, citing supply-demand imbalances and rising raw material costs. Similarly, Perstorp Oxo-AB announced increases of USD 66/MT in North America, EUR 50/MT in Europe, and USD 60/MT in the rest of the world, attributing the hike to high production costs.

In the U.S., pricing dynamics for 2-EH remained mixed. While import prices stabilized, export prices declined by 1.4% due to weak overseas demand. The availability of imported 2-EH from East Asia remained low, as Nan Ya Plastics’ force majeure, effective since January 4, 2025, restricted output from its 250,000 MT/year plant accompanied by an additional maintenance turnaround at Hanwha Solutions at its 125,000 MT/year facility further constrained shipments.

Across the US market, downstream demand for 2-EH from the paints, coatings, and plasticizer industries remained sluggish. The construction sector saw only a marginal increase, while U.S. vehicle sales fell by around 7-8% month-on-month (annualized units), further weakening consumption. Export conditions deteriorated as shipments to Canada and Mexico declined, with weekly chemical railcar loadings down 15-16%. Rising inventories exerted further downward pressure on spot export prices of 2-EH.

In Europe, 2-EH prices remained stable, supported by a 4% increase in feedstock propylene prices in late January. However, market activity was subdued. Many producers kept operating rates at 60–65% since December 2024 to manage weak demand, while consumption in the paints, coatings, and plasticizer sectors remained tepid. The slowdown in paints and coatings further impacted plasticizer demand. In Germany, new car registrations fell 3% year-on-year to 207,600 units in January 2025, according to VDA. Meanwhile, the construction sector continued to struggle, with limited tender opportunities reflecting high borrowing and building costs. January’s decline in new orders was the sharpest since early 2024, highlighting persistent economic headwinds.

Asian markets presented a mixed supply picture. While East Asia faced tight availability due to several offline plants, China remained well-supplied. Expanding production capacity and high operating rates ensured steady domestic output. Pre-Spring Festival stockpiling drove a temporary demand rebound, pushing 2-EH prices higher in January. Post-holiday replenishment provided further short-term support, but the market remained well-balanced. Major Chinese producers Luxi Chemical and Shandong BlueSail maintained stable operating rates in February 2025, keeping domestic supply ample. This raised uncertainty over the impact of OQ and Perstorp’s price hikes in Asia, as local buyers resisted higher offers.

As per ChemAnalyst, 2-EH prices are expected to rise further in mid-February 2025 as producers in Europe, North America, and Asia consider additional hikes. The uncertain restart dates for Nan Ya Plastics and Hanwha Solutions continue to restrict supply, while anticipated increases in feedstock propylene prices are likely to drive up production costs, reinforcing an upward price trajectory across global markets.