Nonylphenol Ethoxylates Prices Witness Buoyancy in July 2024, European Manufacturing Challenges Persists

Hamburg, Germany: The prices of Nonylphenol Ethoxylates have demonstrated a bullish run in the European market in July 2024. As per the market sources, the buoyancy in crude oil prices has increased the manufacturing costs of Nonylphenol Ethoxylates.  On the demand side, This increase in Nonylphenol Ethoxylates demand has not been significant. Consequently, Nonylphenol Ethoxylates manufacturing plants continue to operate below full capacity, as the demand from end-user industries like surfactants and detergents has not fully recovered. The supply of finished products remains adequate to meet market needs. Additionally, the availability of upstream ethylene oxide has been sufficient, ensuring a steady production process without major supply chain disruptions. Additionally, European economies have been impacted by high energy prices and economic instability due to the crisis in Ukraine. The situation is further exacerbated by geopolitical tensions from the conflict in Israel and a slowdown in global trade, which has affected major exporters of various commodities, including Nonylphenol Ethoxylates.

The ChemAnalyst database has shown that the prices of Nonylphenol Ethoxylates have demonstrated an increment of USD 50 per ton in July 2024. New Nonylphenol Ethoxylates demands from the downstream Personal Care sector have been progressing in the northward direction, albeit at a slower pace. The market transactions from the surfactant industries have also started to improve. Additionally, the easing inflationary pressures in global markets have encouraged market participants, for higher procurement of Nonylphenol Ethoxylates from end-use industries.

Furthermore, as per the market sources, The Indian government has extended the zero import-duty policy for upstream crude palm oil (CPO) until March 2025, previously set to expire in March 2024. Initially, CPO import duties were as high as 40% before the pandemic. This extension aims to manage domestic supplies, stabilize prices, and support profitability in the current fiscal year.

With global supplies stagnant, Indian refiners are unlikely to significantly expand capacities in the medium term. Existing cash flow should suffice for incremental working capital and maintenance expenses. As a result, palm oil refiners' credit profiles are expected to remain stable, with total outside liabilities to tangible net worth (TOLTNW) projected at 1.25 times and interest coverage ratios at 4 times.

ChemAnalyst's pricing intelligence suggests that Nonylphenol Ethoxylates prices could rise in the near future. The holiday season in the Europan region is likely to hamper manufacturing activities, increasing the supply-side pressure on the Nonylphenol Ethoxylates market fundamentals. Furthermore, in the Asian markets, the price rise is likely to be driven by an expected improvement in demand from the downstream Personal Care sectors.