Throughout the initial fortnight of April 2024, the global 2-Ethylhexanoic Acid (2-EHA) market has demonstrated a consistent upward trajectory. This trend has been attributed to elevated costs of raw materials coupled with robust demand, thereby leaving manufacturers with minimal alternatives. Consequently, OQ Chemicals, a prominent global entity specializing in oxo intermediates and derivatives, has made public its decision to implement a price adjustment for its 2-EHA product across the United States. This pricing modification extends beyond the domestic market, encompassing regions worldwide. Notably, the price revision for 2-EHA manifests in offered quotations, indicating an approximate increase of USD 176/MT in North America and approximately +160 USD per metric ton in Europe and other regions, effective as of April 1st, 2024.

The North American 2-EHA market continues to experience optimistic market sentiments during the current week. Increasing price of essential raw material Propylene and Crude Oil prompted towards high production cost thus exerting upward cost pressure on 2-EHA price. Demand for 2-EHA has remained firm from both domestic and international markets. Additionally, various surveys conducted reported a shortage of material within the North American market amidst shortage of essential raw material Propylene. However, notable market players, such as OQ Chemicals, are capitalizing on this situation by increasing the price of the material. OQ Chemicals, a prominent global leader in oxo products, has reacted to favourable market conditions by revising prices for 2-EHA in the global market. This strategic move is expected to further strengthen the upward trajectory of 2-EHA prices in the coming month.  In addition, the demand for 2-EHA, a vital ingredient in automotive paints and coatings, surged in the US automotive industry, continuing into April. New light-vehicle sales in March hit a Seasonally Adjusted Annual Rate (SAAR) of 15.5 million units, up by 3.8%.

Similarly, in the European market, the prices of 2-EHA continued to escalate, reaching USD 2825 per metric ton, Free on Board (FOB) Hamburg (Germany), for the week ending on April 12th. This surge can be attributed to several factors including material shortages, elevated material prices set by manufacturers, and robust demand from downstream industries such as paints and coatings. Moreover, during this period, demand for 2-EHA remained resilient, particularly from end-user sectors like automotive and construction. In March 2024, the European Union (EU) witnessed a notable surge in its automotive market, with a growth rate of 10% compared to the corresponding period last year, resulting in a total of 883,608 units sold. Noteworthy growth rates were observed in key EU markets, with France and Italy experiencing double-digit increases of 13% and 12.8% respectively. Spain and Germany closely followed with growth rates of 9.9% and 5.4% respectively. This surge in automotive sales further contributed to the upward pressure on the demand for 2-EHA, consequently impacting its cost dynamics.