For the Quarter Ending September 2024
North America
In the third quarter of 2024, the North American market experienced a notable surge in prices for 2-Ethylhexanoic Acid (2-EHA), particularly in the USA, where price fluctuations were most pronounced. This increase can be attributed to several key factors impacting market dynamics, including elevated import costs and reported material shortages.
In July 2024, a significant rise in freight charges was recorded, contributing to the increased expense of imports. Although freight rates began to decline in the latter half of August, persistent port congestion in the global market continued to prolong supply times, further exacerbating the material shortages within the market.
During this period, demand remained somewhat subdued, particularly from the prominent automotive sector, which typically drives consumption of 2-EHA. As the quarter came to a close, the price of 2-Ethylhexanoic Acid stood at USD 3,102 per metric tonne (MT) on a cost and freight (CFR) basis in New York. This pricing underscores a stable yet upward trend in the regional market, reflecting ongoing supply challenges and fluctuating demand dynamics.
Asia
In the third quarter of 2024, the Asian market for 2-Ethylhexanoic Acid (2-EHA) experienced a decline in prices, with China, Japan, and Malaysia being the most affected regions. This downward trend can be primarily attributed to an oversupply of 2-EHA in the Asian market. Key manufacturers, including BASF in Malaysia and KH Neochem in Japan, reported stable manufacturing operations, contributing to a well-supplied market. Compounding the situation, the automotive sector—one of the principal end-users of 2-EHA—exhibited moderately low performance during this period. Additionally, port congestion significantly impacted logistics, leading to increased inventory levels across the region. This accumulation of stock, in conjunction with the weakened demand, resulted in a narrowed disparity between supply and demand, further exacerbating the price decline. The combination of these factors created a challenging environment for 2-EHA pricing, reinforcing the downward trend observed throughout the quarter. As a result, the market is positioned to monitor any shifts in supply dynamics or demand recovery, which could influence future price movements in the Asian 2-EHA landscape. As per ChemAnalyst, the latest quarter ending price of 2-EHA (( FOB Tokyo) Japan) , 2-EHA (( FOB Qingdao) China), 2-EHA (( FOB Tanjung Pelepas) Malaysia), were hovering at USD 1580/MT, USD 1657/MT and 1560/MT.
Europe
In the third quarter of 2024, the European market for 2-Ethylhexanoic Acid (2-EHA) experienced a notable decline in prices, driven by several key factors. A primary contributor to this downward trend was the subdued demand from the automotive sector, which is a significant consumer of 2-EHA. The automotive industry faced challenges marked by sluggish sales and increasing competition from Chinese electric vehicles, resulting in a diminished need for 2-EHA in manufacturing processes. Additionally, prices of essential feedstocks, such as Propylene, did not provide the necessary support to reverse the overall market trend. Germany, in particular, experienced the most significant price fluctuations, reflecting the difficult outlook for traditional automotive manufacturers in the region. Throughout the quarter, the market observed a 5% decrease in prices compared to the same period in the previous year, alongside a 1% decline from the prior quarter in 2024. Notably, the price changes between the first and second halves of the quarter also reflected a decrease of 1%. By the end of the quarter, the price of 2-Ethylhexanoic Acid reached USD 2,637 per metric tonne (MT) on a free on board (FOB) basis in Hamburg, underscoring the prevailing negative sentiment in the pricing environment.
South America
The third quarter of 2024 marked a significant period of price increases for 2-Ethylhexanoic Acid (2-EHA) in the South American market, particularly in Brazil, where the most notable changes occurred. Several factors contributed to this upward price trend, primarily driven by heightened demand from downstream industries, especially the paints and coatings sector. This sector's robust activity significantly influenced the overall demand for 2-EHA. While the automotive industry exhibited modest performance during this period, it nonetheless contributed to the increased demand for 2-EHA. The stable supply dynamics in the market further reinforced the upward pricing pressure, enabling prices to rise steadily throughout the quarter. The quarter-on-quarter increase of 3% underscores the positive momentum in pricing, reflecting a healthy market environment. By the end of the quarter, the price of 2-Ethylhexanoic Acid reached USD 3,033 per metric tonne (MT) on a free on board (FOB) basis in Manaus, Brazil. This closing price highlights the overall positive pricing environment characterized by consistent price increases, positioning 2-EHA favourably within the South American market.
For the Quarter Ending June 2024
North America
The second quarter of 2024 has witnessed a notable upward trend in the pricing of 2-Ethylhexanoic Acid (2-EHA) within the North American market. This trend has been influenced by several key factors that have collectively shaped the market dynamics. Foremost among these is the strong demand from the automotive sector, particularly in the realm of automotive paints and coatings. The revival of the automotive industry has resulted in increased consumption of 2-EHA, which plays a critical role in automotive coatings. According to insights from various market sources, U.S. auto sales experienced an 11% increase throughout this quarter, driven by robust demand for SUVs, pickup trucks, and hybrid vehicles.
In addition to rising demand, the market has been confronted with supply constraints primarily attributed to logistical challenges and trade uncertainties, which have exacerbated the scarcity of imported materials. These supply chain disruptions, alongside a shortage of truck drivers, have further tightened the market, contributing to upward pressure on prices. Surveys conducted in the industry reported a material shortage within the North American market, compounded by the limited availability of essential raw materials such as Propylene.
Notable market participants, such as OQ Chemicals, are capitalizing on these conditions by increasing the price of 2-EHA. As a leading global entity in oxo products, OQ Chemicals has strategically adjusted their pricing in response to favorable market conditions, thereby reinforcing the upward trajectory of 2-EHA prices in the forthcoming months. The quarter-ending price for 2-EHA CFR New York was reported at USD 2,956 per metric ton, underscoring the positive pricing environment observed during this period.
APAC
During Q2 2024 the Asian 2-EHA market experienced mixed market sentiments with China and Thailand being the most affected areas. The prices surged during the initial two months of the quarter however dipped during the final month 5.1%. This upward trend has been influenced by several key factors that have collectively shaped the market dynamics. Foremost among these is the strong demand from the automotive sector, particularly in the realm of automotive paints and coatings. The revival of the automotive industry has resulted in increased consumption of 2-EHA, which plays a critical role in automotive coatings. Further, Surveys conducted in the industry reported a material shortage within the Asian market, compounded by the limited availability of essential raw materials such as Propylene. Notable market participants, such as OQ Chemicals, are capitalizing on these conditions by increasing the price of 2-EHA. As a leading global entity in oxo products, OQ Chemicals has strategically adjusted their pricing in response to favorable market conditions, thereby reinforcing the upward trajectory of 2-EHA prices in the forthcoming months. However, prices dipped during June owing to subdued demand from the downstream industry. The number of new vehicles sold dropped to 41,587 units in June 2024, compared to 42,379 units in the same month of the previous year, as per the registration data compiled by Taiwan’s Ministry of Transportation. The quarter-ending price for 2-EHA CFR Kaohsiung was reported at USD 1612 per metric ton, underscoring the positive pricing environment observed during this period.
Europe
In the second quarter of 2024, the European market for 2-Ethylhexanoic Acid (2-EHA) experienced a significant increase in prices due to several key factors. A primary driver was robust demand from the automotive sector, which relies heavily on 2-EHA for paints and coatings. According to the European Automobile Manufacturers Association (ACEA), new car sales in the European Union saw a 13.7% year-on-year increase in April, marking the largest rise since October. This growth was propelled by strong performances in major markets, including Spain, Germany, France, and Italy. In May 2024, Germany alone registered 236,425 new cars, with petrol-powered vehicles accounting for 38% of the market and increasing by 2.1%. This surge in automotive sales has directly influenced the demand for 2-EHA, a crucial component in manufacturing automotive paints and coatings. Additionally, the demand resurgence was further bolstered by increased industrial activity across Europe, alongside supply constraints caused by raw material shortages, especially Propylene. Production disruptions due to labor shortages and logistical challenges further contributed to the price increase. Notable market participants, such as OQ Chemicals, have capitalized on these conditions by raising the price of 2-EHA. As a leading global entity in oxo products, OQ Chemicals strategically adjusted their pricing to reinforce the upward price trajectory. The pricing environment in Belgium remained positive, with a quarter-ending price of USD 2,922 per metric ton FOB Antwerp, indicating a strong market outlook supported by resilient demand and constrained supply.
South America
In the second quarter of 2024, the South American region experienced a significant increase in 2-Ethylhexanoic Acid (2-EHA) prices, with Brazil serving as a central point for notable price fluctuations. This upward trend was driven by several key factors that influenced market dynamics during this period. Robust demand from various industries, particularly the automotive and construction sectors, played a crucial role in driving price increases. The strong performance of these sectors, along with supply chain disruptions and logistical challenges, created a scenario where demand exceeded supply, leading to heightened price pressure. The Brazilian new car market demonstrated significant growth, with a year-on-year increase of 10.2% in May, totaling 183,214 sales. Fiat emerged as a standout performer in Brazil, surpassing the overall growth rate with a 12.3% increase in sales. Fiat's market share in Brazil (21.1%) significantly exceeded its share in Italy (9.3%), highlighting its strong presence and popularity in the Brazilian automotive landscape. This strong performance of automotive brands reflects the overall vibrancy of the Brazilian market and its positive impact on the demand for 2-EHA, which is a key component in automotive paints and coatings. Furthermore, industry surveys reported a material shortage in the global market, exacerbated by limited availability of essential raw materials such as Propylene. Notable market participants, including OQ Chemicals, have capitalized on these conditions by increasing the price of 2-EHA. As a leading global entity in oxo products, OQ Chemicals has strategically adjusted their pricing in response to favorable market conditions, thereby reinforcing the upward trajectory of 2-EHA prices in the coming months. The pricing environment in Brazil remained positive, with a quarter-ending price of USD 2,917 per metric ton FOB Manaus.
For the Quarter Ending March 2024
North America
The first quarter of 2024 has proven to be favourable for the pricing of 2-Ethylhexanoic Acid (2-EHA) in the North American region, marked by an overall increase in prices. Several significant factors have contributed to this upward trend.
Strong demand from the downstream automotive and construction sectors has been a key driver, leading to heightened prices. Particularly noteworthy is the surge in construction activity, notably in the USA, fuelled by increased renovations and a shortage of existing houses, which has driven up demand for 2-EHA in paints and coatings.
Moreover, the automotive industry has displayed signs of recovery, with the growing sales of electric vehicles further bolstering demand for 2-EHA. Market data indicates that new vehicle sales exceeded 1.2 million in February, representing a 6.3% year-over-year increase and a 12.4% month-over-month increase. The latest quarter-ending price for 2-EHA CFR New York in the USA stands at USD 2875 per metric ton, reflecting the prevailing upward sentiment in the pricing environment for 2-EHA in the North American region during the first quarter of 2024.
APAC
The first quarter of 2024 has been positive for 2-Ethylhexanoic Acid (2-EHA) prices in the APAC region, with an overall increasing trend. Several factors have influenced market prices during this period. The demand for 2-EHA has remained stable, particularly from the downstream automotive and construction sectors. The supply of 2-EHA has been moderate, with no significant disruptions reported. Additionally, the prices of essential feedstocks such as propylene and crude oil have increased, leading to higher production costs and energy expenditures. This has exerted upward pressure on 2-EHA prices. Overall, the market sentiment has been positive, with prices showing an upward trend throughout the quarter. In Japan, the market has seen the maximum price changes, with an overall increasing trend. The price of 2-EHA in Japan has seen a decrease of 15% compared to the same quarter last year. However, there has been a significant increase of 16% from the previous quarter in 2024. The price comparison between the first and second half of the quarter shows a rise of 9%. The latest quarter-ending price of 2-EHA in Japan is USD 1560/MT ex-works Yokkaichi. The pricing environment in Japan has been positive, with prices consistently increasing during the quarter.
Europe
In Q1 2024, the European market for 2-Ethylhexanoic Acid (2-EHA) witnessed a positive pricing environment. The market experienced an upward trend, driven by factors such as increased demand from the downstream automotive and construction sectors. This surge in demand can be attributed to economic improvements and the revival of these key industries, particularly in Germany. The automotive sector, in particular, played a significant role in driving up prices, given its substantial consumption of 2-EHA. Additionally, the construction sector also contributed to the rise in prices. Throughout the quarter, the overall trading environment in Europe remained healthy, supporting the upward trend in 2-EHA prices. OQ Chemical, a global leader in oxo products, adjusted their prices in response to the favourable market conditions, further boosting prices in the German market. Belgium, in particular, witnessed the maximum price changes in the European 2-EHA market during this quarter. The market experienced a bullish trend, with prices increasing steadily. This can be attributed to factors such as increased demand from the downstream automotive and construction sectors and the announcement of price adjustments by key industry players. Overall, the pricing environment for 2-EHA in Europe during Q1 2024 can be described as positive, with prices showing a consistent upward trend. The latest quarter-ending price for 2-Ethylhexanoic Acid FOB Antwerp in Belgium was recorded at USD 2788/MT.
South America
Throughout the first quarter of 2024, the South American market for 2-Ethylhexanoic Acid (2-EHA) witnessed positive market sentiments. The market experienced an upward trajectory, driven by factors such as heightened demand from the downstream automotive and construction sectors. This increase in demand can be attributed to economic improvements and the resurgence of these key industries. Notably, the automotive sector played a significant role in driving up prices, given its substantial consumption of 2-EHA. Additionally, the construction sector contributed to the price surge. Throughout the quarter, the trading environment in Europe remained robust, further supporting the upward trend in 2-EHA prices. OQ Chemical, a prominent global player in oxo products, responded to the favorable market conditions by adjusting their prices, thereby further bolstering prices in the Brazilian market. Insights from various market participants indicate that vehicle registrations in Q1 2024 surged by 13.9% compared to the same period in 2023, with March witnessing a 12.4% increase over February 2024. The latest quarter-ending price for 2-Ethylhexanoic Acid FOB Manaus in Brazil was recorded at USD 2827 per metric ton.
For the Quarter Ending December 2023
North America
The current quarter (Q4) of 2023 for 2-Ethylhexanoic Acid (2-EHA) in North America was characterized by a bullish market sentiment. The top three factors that affected the market were consistently rising raw material prices, high demand from the automotive industry, and tight supply.
The price surge in the USA, the country with the most significant price changes, was due to strong demand from the downstream automotive and construction sectors and a price increase announcement by a global leader in oxo intermediates and derivatives. As per the data, in October 2023, new car registrations increased by 4.8% to 217,904, marking the eighth consecutive month of growth. This positive momentum translated into an increased demand for 2-EHA, particularly in USA. Following that, the downstream construction sector not only in Germany and Brazil but also in the exporting nation including the USA has begun to perform well. All these together created a healthy trading environment for 2-EHA to fit in.
Moreover, to witness the classic surge, OQ chemical, one of the global leaders in oxo products adjusted their prices for 2-EHA in Europe, USA, and Brazil effective from November 1st, 2023, which further supported the uptrend. Additionally, ongoing geopolitical tensions in the Red Sea region, a lack of clarity regarding the pricing outcomes of the OPEC+ supply cuts, and uncertainties surrounding the global macroeconomic outlook have collectively influenced market sentiments. In the USA market, there has been a build-up of inventories in the region, driven by increasing supply pressure.
APAC
The 2-Ethylhexanoic Acid (2-EHA) market in the Asia-Pacific (APAC) region fluctuated throughout Q4 2023. The supply and demand dynamics in the Malaysian and Taiwanese markets favoured stability, while Japan witnessed a marginal fluctuation in prices due to cautious stagnation. The top three factors that impacted the market were the bearish trend in the spot market, moderate supply, and low demand. The pricing dynamics of the essential feedstock, propylene, exerted some restraint on the upward movement of 2-EHA prices. The shutdown of the upstream propylene plant by Tosoh Corp in Yokkaichi, Japan, also affected the market. Additionally, ongoing geopolitical tensions in the Red Sea region, a lack of clarity regarding the pricing outcomes of the OPEC+ supply cuts, and uncertainties surrounding the global macroeconomic outlook have collectively influenced market sentiments. In the Japanese market, there has been a build-up of inventories in the region, driven by increasing supply pressure. Despite a considerable weakening in demand, downstream customers remain committed to making purchases to meet their immediate requirements. Meanwhile, reports indicate that Middle Eastern suppliers have raised their import offers to the region, contributing to an overall uptick in prices.
South America
The South American 2-Ethylhexanoic Acid market witnessed bullish sentiments throughout Q4 ending in December 2023. This upward trajectory was attributed to a potent blend of global market dynamics and fierce competition within the Brazilian market itself. While the automotive sector, a major consumer of 2-EHA derivatives, grapples with low sales, the global market has been on a different path. The announcement of a price hike by OQ Chemical, a leading Oxo-intermediate producer, sent ripples through the global market, impacting Europe and the USA. To align with this global trend and maintain market competitiveness, Brazilian traders followed suit, adjusting their prices upwards. As per the data, in October 2023, new car registrations increased by 4.8% to 217,904, marking the eighth consecutive month of growth. This positive momentum translated into an increased demand for 2-EHA, particularly in USA and Brazil. Additionally, attacks in the Red Sea, a major trade route, further intensified the situation, driving ocean freight rates to higher levels. In response to the recent attack, Maersk announced the rerouting of vessels away from Red Sea routes, opting for navigation around Africa's Cape of Good Hope, significantly increasing tonne-miles. These developments resulted in a multifaceted challenge for global trade, leading to costlier exports from overseas.
Europe
In the initial month of Q4 2023, the European 2-Ethylhexanoic Acid (2-EHA) market witnessed a downturn marked by bearish sentiments. Despite a moderate supply of 2-EHA meeting demand in both domestic and international markets, the overall demand was subdued. This decline was chiefly attributed to a reduction in electric vehicle sales in the European downstream automobile industry, resulting from the discontinuation of government subsidies for electric cars during this period. However, as November unfolded, the European 2-EHA market experienced a notable price surge. Market reports indicated that in November, 64.9% of all new car registrations, as confirmed by the Kraftfahrt-Bundesamt, highlighted the resilience and growth potential of the car market. The price hike for 2-EHA in Germany took effect on November 1st, 2023, following a global leader in oxo intermediates and derivatives announcing a price increase of approximately +100 USD/MT for its 2-EHA product in Europe. This upward trend in November was primarily attributed to heightened raw material costs and robust demand in the automotive downstream sector. OQ Chemical's earlier price adjustment set the stage for subsequent increases by smaller traders, contributing to the overall positive momentum of 2-EHA throughout the quarter.
For the Quarter Ending September 2023
North America
Overall, the 2-EHA (2-Ethylhexanoic Acid) market in the USA remained weak compared with the second quarter. However, marginal fluctuations have been observed during this timeframe, where the prices of 2-EHA admitted a general hike of +2.3% during July. As per Fred Economic data, total vehicle sales in the US increased from 16.195 (June) to 16.318 (July) which has surged the demand for 2-EHA from the downstream paints and coating industry. Moreover, the USA construction and automotive sector was improving during this timeframe as the market players approached an optimistic trading atmosphere. Conversely, the market sentiments have declined by -4.2 % to settle at 2629 USD/tonne 2-EHA CFR New York, USA during August amid the cheaper imports from Germany. Despite the increase in the feedstock propylene prices in the USA due to the unplanned shutdown at Dow Chemical and BASF Total Energies Petrochemicals in Texas, the prices of 2-EHA in the USA have remained unaffected due to muted demand for the product within September. Therefore, the rollover demand from the international market asserted the market players to keep the prices of 2-EHA unchanged.
Asia
Compared with the second quarter, the 2-EHA prices in Asia remained low during the third quarter as the downturn prices of 2-EHA in Japan were observed during July by -6.5% due to muted demand from importing countries like India and Taiwan. Hence, to remain relevant in the market, Japanese traders had to decrease their posted prices for 2-EHA cargoes, which contributed to the overall descending trend in 2-EHA prices. Similarly, by analysing the demand for the product, few manufacturers in Japan put their upstream propylene plant including ENEOS Corp in Sakai on maintenance shutdown having capacity of 100,000 mt/year till the end of August. This has further supported the downtrend in the Asian market to settle at 1319 USD/tonne 2-EHA FOB Tokyo, Japan during August. However, the market dynamics of Asia took a sharp upturn in September on the back of supply disruption. The unexpected plant shutdown of a propylene feedstock unit in Yokkaichi, Japan has unsettled the supply of 2-EHA, which has resulted in a sudden decline in the availability of raw materials and hence surge the market prices by +3% during this timeframe.
Europe
The 2-EHA market in Europe remained weak in the third quarter of 2023, but there were some marginal fluctuations observed during this timeframe. The pricing dynamics of 2-EHA witnessed a hike of +2.4% under the influence of improved demand from the international market. Hence, to cater to the increasing demand from the downstream paints and coating industry, the European manufacturers increases their production unit of 2-EHA, which further supported the price trajectory. However, the 2-EHA prices admitted a bearish trend during August amid modest demand from the downstream automotive industry. As per National Bank of Belgium Online Statistics, the CPI persisted at 4.1 points during August, whose impact on the export prices of 2-EHA remained unaffected. Therefore, to remain competitive and sustain their offtakes in the market, the European traders decreased their posted prices of the product to settle at USD 2507/MT 2-EHA FOB Antwerp, Belgium during this timeframe. In the meantime, the unchanged demand for 2-EHA from the downstream automotive industry in the USA during September kept the prices of the German markets to remain even.
South America
The 2-EHA market in the Brazil was weaker in the third quarter of 2023 than in the second quarter, but prices went up slightly in July by +2.4% under the influence of new queries from the USA downstream automotive market. Despite, the CPI inclination in Brazil by 0.12% during July quoted by Instituto Brasileiro de Geografia e Estatística, the growing demand from the downstream construction material sector along with the requirements for solvents in Paints, drove the product demand toward positive buying sentiments amongst traders. Therefore, the new orders for 2-EHA from USA kept on rising which influenced the market dynamics of Brazil to showcase an uptrend during July. However, The 2-EHA prices in Brazil declined in August to maintain their offtakes in the market. The market players of Europe have eased down the prices and hence to compete with the international market, Brazilian traders have revised their quotations negatively. Afterwards, the Brazilian market of 2-EHA admitted immense stability during September amid no major development in the market fundamentals observed in the given timeframe.
For the Quarter Ending June 2023
North America
During the second quarter, overall, the 2-Ethylhexanoic Acid (2-EHA) market in the US declined compared with the first quarter. The uptrend of 2-EHA prices has been observed during April, followed by the first quarter amid an increase in industrial activities within the US. According to the data, the Industrial Production Total Index in the US rose from 102.6 (May) to 103.1 (April), contributing towards the recovery in economic condition. The global plasticizer demand awakened during the spring season. Moreover, the absence of significant shipping and transportation disruption led to robust pricing. Weaker feedstock propylene prices prompted the production cost of 2-EHA to reduce during June, followed by May. Furthermore, supplies in the regional market rose significantly in the wake of limited buyer interest in bulk purchases. The key factor for the fall in 2-EHA prices is the weaker demand for materials in the downstream construction industry, including Paints and plasticizers. The downturn of 2-EHA prices is closely correlated with feedstock prices to settle within 739 USD/ tonne Propylene Polymer Grade DEL US Gulf, USA during June.
Asia
During the second quarter, 2-Ethylhexanoic Acid (2-EHA) prices experienced a continuous downturn, followed by the first quarter. A significant drop in 2-EHA China prices was observed during April amid subdued demand from the downstream construction industry, including plasticizers. According to the NBS data, PMI for China fell marginally from 95.3 (April 2023) to 94.1 (May 2023), depicting industrial activities to be low. Majorly declining upstream propylene prices within the quarter supported the downturn in product prices. Due to the muted demand, low upstream propylene prices have made the manufacturers produce fewer products. This has led to a decrease in the supply of 2-EHA, which in turn decreases the demand. Several production units for propylene have been turned down during May and June amid muted demand from the downstream industry, including PetroChina in Lanzhou, Jiangsu Yanchang Zhongran Chemical, and Mitsui Chemicals in Chiba, Japan. 2-EHA has been readily available in the Asian market, including China, Japan, and Malaysia, at a lower cost, which has been pressuring Asian key players to revise their offers negatively.
Europe
The average pricing trend of 2-Ethylhexanoic Acid (2-EHA) during the second quarter in the European market declined compared with the first quarter. Despite the low upstream propylene prices, the 2-EHA market has grown amid Paint and cosmetics manufacturers showing typical interest in acquiring 2-EHA for their manufacturing requirements during April. Moreover, the significant shipping transport disruption rebounded the price trend. However, the Price trend for feedstock propylene correlated with 2-EHA during the second half of the quarter. Low feedstock propylene prices have made it less profitable to produce 2-EHA, so producers have made less of it. Moreover, decreased demand for the product dragged down by the downstream construction material manufacturing industry declined the overall market trend within Europe. According to the data, Producer prices in the Industry of Belgium fell from 163.7 (April) to 161.3 (May), which influenced the production unit to be sluggish during this timeframe. Henceforth, the muted demand from importing countries like the United States further supported the price trend during June. The prime reason for the fall in the values of 2-EHA within Europe is the waning demand for materials in downstream industries.
South America
During the second quarter, the overall 2-Ethylhexanoic Acid (2-EHA) market in Brazil declined compared with the first quarter. However, the uptrend of 2-EHA prices has been observed during April, followed by the first quarter amid an increase in product demand for downstream paints and coating additives. The price trend in Brazil correlates with the demand for the product in the USA, an importer country. Hence, surged prices in Brazil were supported by the US product's demand. As per the data, export prices in Brazil increased from 124.84 (March) to 125.60 (April), which has contributed to the expensive freight charges. This has further surged the prices of 2-EHA during April. On the contrary, low feedstock propylene prices during May and June drove the production cost for 2-EHA to be low. The downturn of 2-EHA prices was closely correlated with feedstock prices to settle within 2629 USD/ tonne 2-EHA FOB Manaus (Brazil)during June. Moreover, according to the data, Brazil's Composite PMI fell to 51.5 in June of 2023 from 52.3 in the previous month's contraction for the manufacturing sector for 2-EHA, along with the decline in export prices. Muted economic activities and low demand hampered the prices to showcase a downtrend.
For the Quarter Ending March 2023
North America
In the US, on the back of rising cost support and firm demand sentiment, 2-Ethyl hexanoic Acid prices have risen consistently throughout the first quarter of 2023. 2-Ethyl hexanol, the feedstock of 2-Ethy hexanoic Acid, prices constantly throughout the quarter which kept the cost pressure on the prices. Meanwhile, demand from the plasticizers industry sharply increased, which culminated in ample new orders and inquiries for the product. Despite the economic headwinds in the US, petrochemical remained largely unscathed in the first quarter. Thus, after the conclusion of the first quarter of 2023, 2-Ethyl Hexanoic Acid prices were assessed at USD 2855 per MT.
APAC
In the Chinese market, 2-Ethyl Hexanoic Acid prices declined consistently in the first quarter of 2023 on the back of weak cost pressure from the feedstock market and stagnant to sluggish demand sentiment. Feedstock 2-Ethyl Hexanol prices dropped for a major part of the quarter which resulted in soft cost support, and consequently, prices remained weak. Meanwhile, demand from the downstream paints & coatings segment remained largely stable as the construction industry faced an off-season lull while consumption from plasticizers increased during the quarter. Thus, after the conclusion of March 2023, 2-Ethyl Hexanoic prices in China were assessed at USD 2400 per MT on a FOB basis.
Europe
In the European region, 2-Ethyl Hexanoic Acid prices constantly rose throughout Q1 on the back of firm cost support from 2-Ethyl Hexanol and stable demand from downstream industries. The plasticizers industry witnessed improvements after sluggish Q4 2022, which culminated in increased consumption rates of 2-Ethyl Hexanoic Acid. However, demand from the paints and coatings industry remained sluggish due to the off-season for the construction industry amid economic headwinds in the European continent. Meanwhile, Europe reported a stable flow of imports from the Asian market as the freight market remained bearish. Thus, after the conclusion of the first quarter, 2-Ethyl hexanoic Acid prices were assessed at USD 2770 per MT.
For the Quarter Ending December 2022
North America
The North American markets for 2-Ethylhexanoic Acid continued to decline during this quarter. In the United States, suppliers had reduced their imports, and sellers were offering discounts to increase sales. The factors that contributed to the price variations of this product were the variations in propylene prices, the base material that was used in the production of this product, and the degree of interest that downstream companies showed in this product, which was moderate throughout this quarter. As a result, domestic manufacturers were also maintaining modest production rates.
APAC
This quarter, market sentiments for 2-Ethylhexanoic Acid varied in the Asia-Pacific region. The cost of this commodity in China fell until the second week of November due to moderate demand; however, from that point on, the cost started rising despite the continued moderate demand. This was because there was limited availability of this product in warehouses and inventories due to the re-implementation of Covid- 19 curbs, which hampered upstream production. This product's price dropped this quarter in Japan. The upstream naphtha and crude oil prices, as well as the average level of interest shown by the lubricants, automobile, and paint industries in this product for the production of their final product, were the driving forces in the Japanese market. The market for 2-Ethylhexanoic Acid in India was comparable to the Japanese market.
Europe
The Asian and European markets for 2-Ethylhexanoic Acid were identical during this quarter. During this quarter, the market in Germany was experiencing a decline. The cost of this commodity was significantly impacted by the subpar performance of the propylene market, as well as by the average amount of interest that downstream organizations were displaying in the product since they were concerned about the enhanced energy costs due to the ongoing conflict between Russia and Ukraine. As a result, suppliers were lowering their quotes to boost sales while upstream companies were maintaining average production rates. In this quarter, the market for Belgium's 2-ethyl hexanoic Acid was similar to Germany's.
For the Quarter Ending September 2022
North America
The North American 2-Ethylhexanoic Acid market began this quarter with a downfall, yet it bounced back in the month of August, and again witnessed a downfall, which lasted till the end of this quarter. The variations that took place in the cost of this product was hugely influenced by the changes that took place in propylene prices, base material used in the production of this product and the magnitude of interest that downstream companies showed towards this product, which changed from time to time. Apart from these, modifications in the exchange rates of the U.S. dollar with Euro too had an impact on the cost of 2-EHA. As on 30th September, the cost of 2-Ethylhexanoic Acid in the U.S. was about USD 3,860 per MT on CFR – New York basis.
APAC
2-Ethylhexanoic Acid was witnessing varied market sentiments in the Asia–Pacific region during the third quarter of 2022. In Japan, the price of this product was growing till the fourth week of August; however, it started to decline from then till the end of this quarter. The factors which drove the Japanese market were the changes that took place in the upstream naphtha and crude oil prices and the degree of interest that lubricants, automobile, and paint industries were showing for this product for their end product’s production. In the final week of September 2022, the price of 2-Ethylhexanoic Acid stood at USD 3,430 per MT on EXW – Yokkaichi basis. Similarly, in China, this product’s price expanded in the month of July and then declined till the end of this quarter. The decline in cost was primarily because of the average demand for this product from downstream companies, as they had to absolutely halt or lower their production rates because of inadequate power supply. The Indian 2-Ethylhexanoic acid market was identical to that of China’s 2-EHA market.
Europe
In this quarter, the European markets of 2-EHA were identical to that of the North American 2-Ethylhexanoic acid markets. The market started this quarter with a defeat, yet it returned in the long stretch of August and again saw a fall, which endured till the finish of this quarter. The variations that occurred in the cost of this item were gigantically affected by the progressions that occurred in propylene costs, base material utilized in the development of this item, and the size of interest that downstream organizations displayed towards this item, which changed occasionally. The drop in the exports of this product also brought down the costs of this product, and in the final week of this quarter, this product was getting bartered in Germany at USD 3,760 per MT on FOB – Hamburg basis.
For the Quarter Ending June 2022
North America
In the North American region, the price of 2-Ethylhexanoic Acid fluctuated throughout the quarter and upsurged by 11% from Q1 of 2022. At the beginning of Q2, prices rose due to a surge in upstream Naphtha costs in the region. However, towards the end of the quarter, the values contracted slightly due to decreased quotations from exporting South American and European exporters after a fall in feedstock prices reduced the product's manufacturing costs. The demand for material remained consistent from the downstream phthalate and paint manufacturers throughout the quarter, and the price trend was stable at the end of Q2.
Asia
In Q2 of 2022, the price trend of 2-Ethylhexanoic Acid remained firm, and prices increased by 18% from the previous quarter in the Asian region. During H1, freight charges surged noticeably, causing a significant downward cost pressure on the values. However, upward cost pressure got reduced due to decreased feed Propylene prices, and the demand for product upsurged significantly in the PVC plasticizer manufacturers for the growing automotive sector in the region. The price started declining at the end of the quarter due to a reduction in upstream costs of the region and stable demand sentiments from the downstream industries.
Europe
During Q2, the price trend of 2-Ethylhexanoic Acid remained strong and rose quarterly by 15% in the European region. In the first half of the quarter, the prices were continuously upsurging due to increased upstream costs post-global inflation. However, from the mid-quarter, the price movement shifted, and values started declining due to decreased feed Propylene prices in the region, reducing production costs. Hence, the price of 2-EHA dropped until the end of the quarter. The demand for the product remained steady during the period. However, port congestion affected the supplies with unstable but consistent offtakes of material from the market.
For the Quarter Ending March 2022
North America
The USA, a major importer of 2-Ethylhexanoic Acid from Germany and Brazil, witnessed a market surge in price in the first quarter of 2022 due to an increase in freight charges in the exporting countries. Quarterly growth of 6% was seen with rising feedstock and energy costs because of Russian invasion in Ukraine leading to increase in the value of 2-Ethylhexanoic Acid. The upstream market of butyraldehyde and 2-ethyl hexanal also saw a spike in the price. The pace of economic growth in transportation and manufacturing affected the demand prospects, and dramatically, crude oil market sentiments swung changes in economic fundamentals. In the USA, the price of 2-Ethylhexanoic Acid surged to USD 5331/ton CFR New York.
Europe
The price of 2-Ethylhexanoic Acid in Europe rose in Q1 2022 with strong market sentiments and insufficient supply. The product price towards the start of the month in Q1 was observed to be USD 3680/ton FOB Hamburg. An increase in consumption and demand from the downstream market, such as catalysts, dyes, and construction materials, are contributing to the surging prices. Freight charges increased, and a decrease in supply and inventories further pushed the prices. The price of upstream crude oil responded to more significant price moves to be brought into the market.
Asia Pacific
In Asia, the price of 2-Ethylhexanoic acid surged because of the lower supply of raw materials and surge in the price of crude oil due to the Russia-Ukraine war. In China, demand for the product from the domestic market has been stable throughout February, while inadequate supplies due to Lunar holidays and movement restrictions pushed prices up. High imports in Asian countries and exorbitant exports from Japan increased the price of the product. Overall, the cost of the product rose in China, India, Japan, Malaysia, and Taiwan. In China, the price of 2-Ethylhexanoic acid towards the last month of the quarter was observed to be USD 2560/ton Spot Ex-Qingdao.
For the Quarter Ending December 2021
North America
2-Ethyl Hexanoic Acid offtakes remained stable across North American market during Q4 2021. Global key players heard revising their offers for North America too, which also opportune domestic traders to improve their margin under the shadow of these trend setters. However, USA market remained less competitive compared to other countries of Asia and Europe. In the meantime, OQ chemicals raised their offer by more than USD 500/MT effective from January 2022. Furthermore, Perstorp also raised their offers to future purchases by more than USD 240/MT effective from January 2021. However, effect of these hikes has already been observed across US market.
Asia
Asian market witnessed mixed sentiments for 2-Ethyl Hexanoic Acid prices, which varied country over country during this quarter. Major manufacturers heard revising their offers to sustain their profitability as high input cost remained a major factor behind these hikes. However, demand from the domestic downstream industries remained stable to firm throughout Q4 2021. Meanwhile Japanese giant KH Neochem announced stopped providing price quotations due to maintenance turnaround on their 2-Ethyl Hexanoic Acid unit. Furthermore, China also imposed production cuts on the back of dual energy policy during November and later for winter Olympics during December. Conclusively, 2-Ethyl Hexanoic Acid price remained firm during this quarter in Asian market which assessed around USD 2733/MT in Japan during December.
Europe
Rising feedstock and energy costs led to an increase in the prices of 2-Ethyl Hexanoic Acid in Europe. As Natural gas is the main energy source in Europe and entire Europe was facing abrupt escalations in the material cost, several chemical producers in eastern Germany were on the verge of shutting down their plants as they are coping with the recent spike in energy prices during October. To meet the market dynamics, Perstorp AB, which is a major manufacturer of 2-Ethyl Hexanoic acid increased its product prices for all regions with effect from November. Furthermore, OQ chem announced price revision during the first week of December, which would be applicable from January 2022. Conclusively, 2-Ethyl Hexanoic Acid price hovered around USD 4290/MT FOB during mid of December.
For the Quarter Ending September 2021
North America
In 2021, post Q2 the demand for 2-Ethylhexanoic Acid registered a sharp rise in the North American region. However, the supply was restricted as the threat of delta variant of COVID continued to weigh over supplies across the region in Q3. There was a major rise in the demand for raw materials after the occurrence of climate calamities disrupted supplies during Q1 and Q2 in the US Gulf region, which led to an increment in 2-EH Acid prices across North America. Many players announced the shortage of raw materials as the demand hiked in the Q3 from the automotive, chemicals, paint, and coatings, along with the rising demand from the construction sector.
Asia Pacific
During the third quarter of 2021, the prices of 2-Ethylhexanoic Acid witnessed an upsurge in the Asia Pacific region. In China, due to the shutdown of the major port Ningbo-Zhoushan in August, prices of 2-Ethylhexanoic Acid in the Asia Pacific region were largely impacted leading to the disruptions in the demand and sales of the key end-user industries. 2-Ethylhexanoic Acid price trend in Taiwan escalated in Q3 as the prices rose from USD 3414 to USD 3522 per MT CFR Kaohsiung from July to September. The Taiwanese 2-Ethylhexanoic Acid price chart showed a stable range across Asia despite significant gains noted in the Swedish stocks due to raw material tightness. The demand and supplies remained firm from the downstream pharma and other end-use industries. Export demand in Japan also observed an uprise in the 2-Ethylhexanoic Acid market.
Europe
During the Q3 in 2021, the supplies of the 2-EHA in the European region restored as Oxea’s plant in Oberhausen (Germany) ended its turnaround after the fire broke out at one of its 2-EHA manufacturing facility. Many recovering downstream industries along with the strong demand from the construction activities surged the offtakes of 2-Ethylhexanoic Acid, further supporting the demand outlook in the regional market. The prices increased from USD 3348 to USD 3865 per MT FOB Hamburg, Germany in the third quarter from July to September. Perstorp Oxo AB surged the prices for its carboxylic acid derivatives owing to the increased raw material pricing and rising demand for the product in the market. Propylene prices stayed firm in the recent weeks. Rise in prices can also contribute to strengthening crude and record prices for natural gas around the globe.
For the Quarter Ending June 2021
North America
The supplies of the 2-Ethylhexanoic Acid improved in the North American region after the winter storm disrupted several manufacturing facilities in Q1. The industrial infrastructure in the US Gulf region restored and refineries ramped up the operating rates to cope with the demand-supply imbalance. Export market outlook improved as the demand piled up from the overseas market with downstream construction sector gaining pace during Q2. Raw material escalations continued to send ripples to the 2-EHA prices across the globe. In response to the global factors, Perstorp announced increase in 2-EHA prices by USD 330 per tonne in June starting and OQ chemicals also raised 2-EHA prices by USD 100 per tonne later in June for the US deliveries. Players reported acute shortage in the material availability and high demand as the key factor raising the regional offers.
Asia Pacific
During the second quarter of 2021, 2-EHA supplies in the Asia Pacific region improved to meet the surging end use demand. Several Japanese manufacturers opted to positively revise the offers amidst continued pressure from the raw material front and consistent gains in crude prices. Vaccine rollouts stimulated hope for continued recovery. The uptrend in Asian 2-EHA prices was mainly influenced by the overseas market conditions while the demand remained outlook remained stable. OQ Chemicals hiked the prices for 2-EHA deliveries to the APAC region by USD 220 per tonne in the second half of the quarter. Demand from China surged amidst improved demand from the paints and coating sector and rising enquiries from the refrigeration lubricant manufacturers. Prices in India followed the global trajectory, but the demand outlook showcased mixed sentiments due to the restrictions imposed by the authorities to contain the spread of second COVID wave.
Europe
During the second quarter of 2021, the supplies of the 2-Ethylhexanoic Acid in the European region surged as Oxea’s plant in Oberhausen (Germany) ended its turnaround after the fire broke out at one of its 2-EHA manufacturing facility. The recovering automotive industry and strong demand from the construction activities surged the offtakes of 2-Ethylhexanoic Acid, thereby supporting the demand outlook in the regional market. Raw material Propylene continued to trade higher during the quarter which maintained cost pressure over the manufacturer’s margins. Also, the demand from the refrigeration lubricant sector was bolstered throughout the region which further led to an increment in the regional 2-Ethylhexanoic Acid offers. Prices were revised by USD 80 per tonne by the quarter ending, keeping the values rangebound between $2430-2450/mt in June.
For the Quarter Ending March 2021
North America
During the first quarter of 2021, supplies remained tight in the North American region as various manufacturer in mid-February announced unplanned force majeure due to unprecedented severe freeze weather conditions in Texas and nearby US Gulf region. Furthermore, high freight charges amid the shortages reduced the export to the other regions. The demand however surged amid the shortages from the plasticizers sector. Consequently, several renowned companies surged the prices of 2-Ethyl Hexanoic Acid by +USD 511 per ton in March.
Asia-Pacific (APAC)
2-Ethyl Hexanoic Acid supplies were limited in the Asia Pacific region, during Q1 2021, due to the unprecedented plant turnarounds amid the Chinese lunar new year holidays, and several plant turnarounds in USA due to the freezing temperatures. The scenario led to the global supply shortage and reduction in imports. The exports from Europe region witnessed multi-fold surged by +USD 500 per MT in March.
Europe
The supplies were tight in the first quarter of 2021, due to several plant turnarounds and reduced production rates in the Northwest European region. US supplies to the region declined due to bad weather-related disruptions. Perstorp Oxo AB surged the prices of 2-Ethylhexanoic Acid by +USD 506/MT for the domestic market and by +USD 510/MT for the deliveries for USA due to the feeble production and high shipping freight charges. However, demand witnessed an uptrend in the first quarter, due to better offtake from export segment as a repercussion of global supply shortage.
For the Quarter Ending December 2020
Asia
The demand of higher carboxylic acids in the Asian markets remained high with prices witnessing an upswing supported by strong demand prospects during Q4 2020. In China, product availability seemed hampered amidst production related constraints heard across several upstream (Propylene) units. Market players reported favourable buying sentiments as restocking activity by downstream plasticizer manufacturers was high throughout the quarter. Prevailing demand and supply imbalance in December prompted a major producer to raise its offers for 2-EHA by USD 100 per MT w.e.f. January 2021. 2-EHA is widely used as an intermediate in the production of plasticizers, PVC stabilizers, lubricants, cosmetics and drying additives for coatings.
North America
2-EHA market in the Americas remained well supported in terms of pricing throughout the fourth quarter. Some manufacturers were heard revising their offered prices several times within Q4 to match pace with the surge observed in raw material pricing. Demand-supply situation seemed dented under the seasonal hurricanes which caused supply chain disruptions and container shortages across Asia. In October 2020, leading oxo-alcohol and intermediates manufacturer positively revised the price of 2-EHA by USD 100-111/metric ton for all its shipments across North America. Due to an overall increase in the production cost and tight supply situation, the trend remained likewise in almost all the American countries.
Europe
The European 2-EHA market showed a substantial growth in Q4 2020 despite looming uncertainties due to surging COVID-19 infections exacerbated by the emergence of new virus strain and fresh lockdowns imposed in some highly infected countries. The demand was primarily driven by pigments and plasticizer industries. OQ Chemicals, Germany’s leading 2-EHA producer revised its offered rates for 2-Ethylhecanoic Acid by USD 116/Mt w.e.f. mid-November due to persistent tightness in the product supply by a consistent demand rise.
