In April 2024, the Indian market for 2-Ethylhexyl Nitrate (2-EHN) experienced a significant price decline, largely attributed to subdued demand from the downstream Diesel industry. Data from the Ministry of Petroleum & Natural Gas, Government of India, revealed a decrease in domestic consumption of light diesel oil during the same period, accompanied by a surplus in 2-EHN supply within the country. Despite these bearish market conditions, there was positive demand from the end-use automobile industry, as evidenced by Mahindra's sale of 41,008 passenger vehicles in April 2024, all of which were SUVs, marking a remarkable year-on-year growth of 18%.

Throughout the month, there was high availability of the 2-EHN in the country, with no shortages observed. However, challenges emerged in the Asian freight industry, particularly at ports in Shanghai, Ningbo, and Busan, where closures occurred due to dense fog in the last week of April 2024. These closures resulted in heavy berth congestion and delays, prompting carriers to announce a General Rate Increase (GRI) effective May 1. This increase is expected to widen the rate spread between Fixed and Floating, potentially leading to a higher volume of fixed cargo in May. With space becoming increasingly limited, cargo rolling is anticipated, especially for the Pacific Southwest gateway, and some tightness is expected for the East Coast and Pacific Northwest.

Meanwhile, according to the Ministry of Commerce & Industry, the Combined Index of Eight Core Industries (ICI) showed a 5.2% increase (provisional) in March 2024 compared to March 2023. Positive growth was recorded in the production of Cement, Coal, Electricity, Natural Gas, Steel, and Crude Oil during both March and April 2024, supporting the price trend for the 2-EHN.

In April 2024, the US market for 2-EHN also experienced a significant price decline, primarily driven by the cheaper import of the 2-EHN from overseas, especially from India and Oman. The price of the 2-EHN in India decreased by 8%, reflecting its impact on the US market. Furthermore, the consumption of the 2-EHN in the Indian market, as reported by the Petroleum Planning & Analysis Cell under the Ministry of Petroleum & Natural Gas, Government of India, became a crucial factor behind the price decline and further affected imports of the 2-EHN in the USA.

The combination of these factors underscored the challenges faced by the 2-EHN market, particularly amidst climbing inflation levels in the US market. This inflationary pressure posed a significant concern for businesses across various sectors, impacting consumer purchasing power and overall market sentiment. Additionally, while US business activity continued to rise in April, the rate of expansion showed signs of slowing down.

In summary, April 2024 was marked by significant price declines in the US 2-EHN market, driven by cheaper imports from overseas and subdued demand from India. These challenges, coupled with inflationary pressures and slowing business activity, highlighted the complexities of navigating the market landscape in the face of global economic uncertainties.