The economic slowdown brought on by inflation across the Eurozone and COVID-19 cases and strict monetary policies has impacted the market growth of Speciality Chemicals, including Detergent Alcohol. The production costs of Detergent Alcohol are majorly affected by price movements in upstream Palm Oil. The upstream Palm Oil prices have declined, and a downturn has been observed in Detergent Alcohol prices. India, the world's largest consumer of Palm Oil, has witnessed a 29% increase in oil imports in November compared to October amid lucrative discounts from the producing nations.

In China, Detergent Alcohol prices have witnessed successive reductions towards the end-Q4 of 2022. The market participants have reported that the overall inventory was high, and the upstream cost support from Palm Oil has weakened. The weak demand from the downstream surfactant and detergent industries amid the destocking and winter season has prompted the manufacturers to provide low-end quotations. On the other hand, in Germany, the Detergent Alcohol prices were reduced by USD 45 per tonne last week on a FOB basis. The downstream sales were average, and there was no significant improvement in market sentiment.

Furthermore, one of the leading market players in Speciality Chemicals, Clariant, is set to develop its Care Chemicals facility in Daya Bay, Huizhou, China, to intensify its support for pharmaceutical, personal care, home care, and industrial application. The primary goal is to enhance the production of more environmentally sustainable ingredients to fulfill market demand. Moreover, according to market sources, Malaysian palm oil is anticipated to trade between 3,500 and 5,000 ringgit per tonne from now until the end of May 2023, as stockpiles in the product's top two producer countries have started declining, weakening the Detergent Alcohol market.

According to ChemAnalyst, Detergent Alcohol prices are anticipated to plummet amid adverse market conditions. The reduction in upstream Palm Oil market prices and limited new orders are likely to pressure the market growth of Detergent Alcohol in the forthcoming weeks.