The Nonyl Phenol prices consolidated southward in the middle of December 2023 in the Asian and US markets, as the downstream market situation showed no signs of resilience. The price movement of Nonyl Phenol tends to be paused in January 2024 by a shortage in supply, coupled with rising production costs overshadowing the impact of weak demand fundamentals. While some industry players believe that the downstream market may see further declines due to high operating costs and narrow profit margins, optimism is alleviated by the uncertainty of global economic conditions influencing demand. There was a prevailing belief that the current downward price trend of Nonyl Phenol across the export market will continue until the Chinese New Year ends in February 2024.

In Asia, the Nonyl Phenol prices exhibited a relatively stable trend in December 2023 as the demand from the downstream surfactant industry saw no improvement and producers restricted production rates to survive their margins in the year-end destocking period. Meanwhile, in the Asian Ethoxylates market, there is a tendency towards weakened demand, similar to the situation in the surfactant supply chain. Supplier stocks were elevated, leading to the availability of some lower-priced deals as the year-end approaches. At these demand-related factors, profit margins for Nonyl Phenol players in the Asian market are being squeezed for this month.

Meanwhile, the American Nonyl Phenol market situation remained balanced during this time frame and prices witnessed stagnancy, with no marked shift in the purchasing sentiments from the downstream Ethoxylates and surfactant industry. The Nonyl Phenol buyers paused purchasing activities in anticipation of further discounts in the prices as the downstream market faced challenges due to various factors including logistics and hampered production rates. The export prices for US Nonyl Phenol showed no variation in the middle of December, as per the latest analysis, and are also likely to be influenced by the uncertain downstream market dynamics in January 2024. From the supply perspective, globally, freight markets have experienced elevated demurrage costs and extended transit voyage times due to congestion in major international waterways in recent months. The crucial Panama Canal route has been affected by low water levels, leading to restrictions on vessel hull drafts and reduced transit volumes.

In conclusion, manufacturers of Nonyl Phenol have indicated a decline in sales, decreased production, and a reduction in output, as the demand has dwindled across key customer end markets during the second half of the month.

As per the ChemaAnalyst, Nonyl Phenol prices may consolidate within the narrow range across the US and Asian markets during January 2024 on account of a marginal change in downstream Ethoxylates surfactant segment inquiries.