Stable Prices for 2-Ethylhexanoic Acid in China and US Amid Supply-Demand Equilibrium

Prices of 2-Ethylhexanoic Acid (2-EHA) have held steady in both China and North America, during the week concluding on November 8^th, driven by a balanced supply-demand dynamic. In China, the stable price trend for 2-EHA is attributed to steady supply supported by proactive stockpiling Meanwhile, U.S.  2-EHA prices have also remained stable as inventory levels align closely with current demand in key sectors such as automotive and coatings.

In China, domestic production of 2-Ethylhexanoic Acid (2-EHA) has remained stable, supported by a 1.1% decrease in Propylene prices, which are a key raw material for 2-EHA production. However, logistical challenges persist due to port congestion at major Asian container hubs, compounded by the effects of Typhoon Kong-Rey, which has caused minor disruptions in the distribution of 2-EHA. Despite these challenges, traders have proactively stockpiled inventories in anticipation of increased demand. On the demand side, the automotive sector has shown moderate growth, particularly driven by a notable 11.2% year-on-year increase in passenger vehicle sales in October. Leading automakers like BYD have performed well, contributing to the overall increase in automotive activity. Additionally, the rise in new energy vehicle (NEV) sales, expected to surpass 1 million units for the third consecutive month, reflects the ongoing strength of the automotive market. However, this growth has not yet had a significant impact on 2-EHA demand. With sufficient inventory levels, the 2-EHA market remains stable, and supply appears adequate to meet the current demand.

In North America, the price of imported 2-EHA has remained stable, as traders strategically maintain competitive pricing to sustain end-user interest despite global market volatility. Sufficient inventories are helping traders meet demand without upward pressure on prices, sustaining demand from the automotive and coatings sectors. Supply concerns linger, however, as dockworkers’ contract negotiations with the International Longshoremen’s Association (ILA) could impact East and Gulf Coast port operations if a new contract is not reached by the January deadline. Additionally, potential shifts in trade policies may affect import strategies and freight costs, creating a complex supply outlook for 2-EHA in the U.S. market. Demand in the U.S. has experienced steady growth, with October 2024 data indicating a 12.8% month-on-month increase in vehicle production and a 9.6% year-on-year increase in vehicle sales. Automakers like Ford have reported a 15% year-on-year increase in sales, especially of popular models such as the F-series trucks and hybrid vehicles. This automotive sector expansion has strengthened demand for 2-EHA, widely used in automotive lubricants and coatings, with consumption expected to remain robust through November.

According to ChemAnalyst, the price of 2-EHA is expected to rise in the coming months, driven by strong demand from the downstream market.