Fatty Alcohol prices experienced a significant decline in both the USA and China during the first half of January 2025. Specifically, prices fell by 2.8% in the USA and 3.9% in China, marking a significant shift in the market dynamics for this crucial personal care ingredient.

The recent downturn in Fatty Alcohol prices is intrinsically linked to fluctuations in its key raw material, palm oil. The price of palm oil, heavily influenced by production and export patterns in major producing nations like Malaysia and Indonesia, has experienced a significant drop. In Malaysia, palm oil prices fell by 4.7%, primarily due to a combination of factors. The weakening of crude oil markets reduced the demand for palm oil as a biodiesel feedstock. Simultaneously, the strengthening of the Malaysian ringgit made Malaysian palm oil exports less competitive globally, further dampening demand. High inventories among traders in early January 2025 also contributed to this price pressure. This overall weakening of the palm oil market directly translated into lower input costs for Fatty Alcohol manufacturers, leading to a price reduction in the final product. The muted trading activity and cautious market sentiment observed in Indonesia further reinforced the downward trend, with reduced end-user activity and limited negotiations contributing to lower trading volumes and prices.

China's Fatty Alcohol market experienced a 3.9% price drop in mid- January 2025, directly reflecting the reduced cost of palm oil, a key ingredient. Subdued market demand, global economic uncertainty, and buyer hesitation all contributed to this decline. The ample existing inventory further dampened prices. Ahead of the Spring Festival period, the Fatty Alcohol market saw cautious trading, with traders reluctant to take new positions. The Malaysia Palm Oil Council's projection of lower shipments in the first two months of the year due to seasonal factors added to the negative market sentiment, exacerbating the price decrease in the palm oil market. The overall impact of reduced palm oil prices and weak market sentiment resulted in lower Fatty Alcohol prices in China.

Fatty Alcohol prices in the USA dropped by 2.8% in early January 2025, mirroring the similar trend. This decline is directly linked to reduced palm oil prices, a key feedstock. Weakened demand and cautious market sentiment in Indonesia, a major palm oil producer, contributed to lower prices. Subdued end-user activity and minimal negotiations further decreased trading volumes and supported the downward price movement of palm oil, directly impacting the cost of Fatty Alcohol production in the USA.

As per ChemAnalyst, Fatty Alcohol prices are anticipated to stabilize in the coming weeks. While the current downward trend reflected the impact of lower palm oil prices and subdued demand, Fatty Alcohol prices will stabilize eventually in both China and USA. Moreover, it is anticipated that the future demand will pick up after March.