Tepid Terminal Demand Constrains Prices of European Nonylphenol Ethoxylates in May 2024

Hamburg, Germany: In May 2024, the prices of Nonylphenol Ethoxylates demonstrated a downward trend in the German market. Moderate inquiries from the downstream Personal Care industries have weakened the Nonylphenol Ethoxylates market sentiments and have been prompting the manufacturers to avoid any major developments in the price realizations of Nonylphenol Ethoxylates. Softening demand in Europe, driven by economic uncertainty and higher interest rates, has put pressure on Nonylphenol Ethoxylates manufacturers' profit margins this year.

The ChemAnalyst database has shown that the process of Nonylphenol Ethoxylates was settled at USD 2490 per ton in the week ending 31st May. As per market sources, manufacturers of Nonylphenol Ethoxylates are reducing prices due to weak demand from the personal care industry. This decline is driven by economic uncertainty and a shift towards natural and sustainable products, leading to lower Nonylphenol Ethoxylates consumption in major markets. Despite stable raw material costs, manufacturers are dealing with high inventory levels, prompting Nonylphenol Ethoxylates price cuts to stimulate sales and maintain market share.

Additionally, growing competition from eco-friendly surfactant alternatives is putting further pressure on Nonylphenol Ethoxylates prices. To manage these challenges, manufacturers are lowering prices, seeking cost-effective production methods, and diversifying into new markets. This situation highlights the difficulties in the Nonylphenol Ethoxylates market, underlining the need for innovation and adaptability in response to changing industry dynamics.

Considering energy inputs, oil prices dropped over $2 per barrel on Monday, reaching multi-month lows due to demand concerns. OPEC+ extended major output cuts until 2025 while allowing some easing from October. They also set a new production target for the UAE. Crude prices have been volatile, influenced by the upcoming OPEC+ meeting and a surprise drop in U.S. gasoline demand. The EIA reported a 4.2-million-barrel decline in U.S. crude inventories last week, exceeding the expected 1.6-million-barrel drop.

On the other hand, Germany's chemicals industry association VCI has raised its annual forecast, now expecting a 3.5% increase in production volumes, including pharmaceuticals. Previously, VCI had predicted flat production volumes. Furthermore, overall industry sales are projected to rise by 1.5%. VCI reported that growth in the first quarter was primarily driven by orders from non-European markets, with China leading the demand. The association anticipates a slight increase in German domestic orders in the second half of the year.

According to the pricing intelligence of ChemAnalyst, the prices of Nonylphenol Ethoxylates might gain momentum amid an expected improvement in the demand from the end-use markets. In addition, the procurement volumes of Nonylphenol Ethoxylates in the Asian market are also likely to strengthen in the forthcoming weeks.