Indian Defoamer Surfactant Prices Squeezed with Decline in Upstream Palm Oil Prices in July 2022

Declining upstream Palm oil prices coupled with sluggish downstream demand fundamentals caused downward momentum in the price trend of Surfactant defoamer in India throughout July 2022. In India, prices for Defoamer Surfactant witnessed a stable trend in the first week of July as the consistency in Indonesian supplies for feedstock palm oil coupled with steady demand for Defoamer surfactant seen in the market.

As per the latest insights, Malaysian and Indonesian Palm oil supplies saw a surge in the Indian market at lower costs in fear of stockpiling inventories. In India, ease in the shipment charges relieved imported commodities' prices and led to sufficient availability of stocks to fulfill domestic market demand. Besides, profits margins are majorly affected by the depletion of the Indian currency against the US dollar in the second quarter of 2022 amid high inflation rates. Defoamer Surfactant costs settled at a stable trend backed by the significant number of feedstock palm oil supply and consistent offtakes during July 2022 in India. Moreover, high energy values caused input costs to pressure on the market players of surfactant, and enterprises were prompted to pass the cost burden to the consumers in the local market.

Meanwhile, Defoamer Surfactant prices declined by 1.4% weekly as of the 22nd of July 2022.

As per ChemAnalyst, "prices of Defoamer Surfactant are expected to show a surge in August 2022 due to expected rise in the prices of upstream oleochemicals, palm oil amidst strong demand." Moreover, the supply of Defoamer Surfactant is likely to improve between India and China amid the anticipated easing in covid curbs in China. Meanwhile, ease in inflation may support the price trajectory for defoamer surfactant in the Indian market. Furthermore, demand from downstream industries such as detergent, paints, and coatings will likely increase in India.