For the Quarter Ending December 2024
North America
The North American Fatty Alcohol Ethoxylates market experienced a significant price surge throughout Q4 2024. The surge in prices stemmed from its’ reliance on palm oil as a key raw material.
October's price increase was driven by higher global palm oil costs due to reduced Malaysian production and robust Asian demand. November witnessed a sharp rise, caused by severe Malaysian floods disrupting palm oil supply and Indonesian policy changes restricting availability. The upward trend continued in December, with a further price increase in US Fatty Alcohol Ethoxylates market, driven by persistently tight global palm oil supplies and strong US personal care sector growth. Increased demand for premium products and higher input costs further contributed to this price pressure.
Overall, Q4 2024 showed a consistently strong upward price trend for Fatty Alcohol Ethoxylates in North America, strongly influenced by global palm oil market instability. The robust US personal care sector demand strongly indicated significant price increases throughout the quarter. The market's vulnerability to global palm oil price fluctuations and broader inflationary pressures on raw material costs was clearly demonstrated.
APAC
The APAC fatty alcohol ethoxylates market, specifically in China, experienced a volatile Q4 2024. October and November saw significant price increases driven by palm oil market instability. However, December witnessed a dramatic price reversal due to a confluence of factors: weak global demand, high inventories, policy adjustments, and currency fluctuations. While the Chinese personal care sector showed moderate growth, the overall market trend was dominated by the palm oil market's volatility.
October and November saw significant increases driven by soaring palm oil costs due to high demand (India, China), Malaysian production issues (dry season, tariff, flooding), Indonesian policy changes (B40), and increased export levies. Strong personal care demand and a slight ethylene oxide price rise also contributed.
However, December brought a dramatic 26% price drop. This reversal stemmed from weakened global edible oil demand (economic concerns), high importer inventories, and policy adjustments. The bearish market sentiment, high palm oil stockpiles in Malaysia and Indonesia, and currency fluctuations (stronger Malaysian ringgit) created a supply glut, overshadowing the impact of high ethylene oxide prices. Despite moderate growth in China's personal care sector, the overall quarterly trend was dominated by the palm oil market's dramatic shift.
Europe
The European Fatty Alcohol Ethoxylates market, exhibited a strong upward price trend throughout Q4 2024, largely mirroring the volatility in the palm oil market.
The European Fatty Alcohol Ethoxylates market experienced an upward price trend in October. The primary driver was the increase in palm oil costs due to factors such as increased demand from India and China, production declines in Malaysia (dry season, new tariff), and low Indonesian stock levels. While specific data for Fatty Alcohol Ethoxylates is unavailable, the strong correlation with palm oil prices suggests a considerable price increase. The strong personal care demand in Germany likely contributed to this upward pressure, as Fatty Alcohol Ethoxylates are key ingredients in many personal care products.
November saw a significant price increase for Fatty Alcohol Ethoxylates in Europe. The jump in Fatty Alcohol Ethoxylates prices was fueled by Malaysian flooding, Indonesian policy changes (B40 implementation), and increased export taxes in Indonesia. The increased demand for Malaysian palm oil, caused by Indonesia's policy changes, impacted Fatty Alcohol Ethoxylates. The mixed performance of the European personal care sector—festive shopping boosting retail but rising input costs negatively affecting manufacturers, influencing the market dynamics for Fatty Alcohol Ethoxylates.
Elevated prices persisted in December for Fatty Alcohol Ethoxylates Indonesia’s low palm oil inventories and biodiesel policies, which created a tight supply situation for Fatty Alcohol Ethoxylates. Despite moderate year-end demand in the personal care sector, the overall supply constraints stemming from the palm oil market's instability-maintained price levels.
For the Quarter Ending September 2024
North America
In Q3 2024, the pricing landscape for Fatty Alcohol Ethoxylates in North America displayed a mixed trend, influenced by varying demand across sectors, raw material costs, and supply chain dynamics.
The quarter began with elevated prices, driven by robust demand from the detergent and personal care sectors. Increased inquiries led to supply constraints, particularly as manufacturers faced challenges in sourcing adequate palm oil, a key raw material. Higher crude palm oil (CPO) prices contributed to this upward pricing pressure. Later, a stabilization in prices was observed, as the market adjusted to earlier demand spikes. Although inquiries remained steady, supply levels improved, allowing for better inventory management among producers. The price fluctuations in raw materials, particularly CPO, continued to exert influence, but the overall market sentiment suggested a balancing of supply and demand.
In the second half of the quarter, prices experienced a slight uptick again due to renewed demand, particularly in personal care applications. However, concerns about palm oil production, stemming from seasonal impacts and climatic factors, led to uncertainty in the market. While some segments reported price increases, others faced pressure to maintain competitiveness amid fluctuating costs.
APAC
In Q3 2024, prices for Fatty Alcohol Ethoxylates demonstrated a marked upward trajectory, driven by heightened demand from downstream Personal Care industries and fluctuating palm oil costs. July saw prices on the higher end, supported by increased inquiries from the surfactant and detergent sectors. The crude palm oil (CPO) reference price rose from USD 778.82 in June to USD 800.75, a 2.3% increase, fueled by rising palm oil exports and anticipated duty hikes in India. In August, prices stabilized amid adequate supply, with Malaysian palm oil stocks peaking at 1.88 million metric tons, up 7.34%. The CPO reference price increased to USD 839.53, a 4.6% rise. September continued the upward trend, with prices rising due to steady demand in the personal care sector. Despite a 3.8% decline in CPO output, stocks increased by 10.91%, pushing the reference price to USD 893.64, a 6.4% increase. In China specifically, the pricing trend exhibited a consistent upward trajectory throughout Q3 2024. The quarter recorded a notable percentage change of 4% from the previous quarter, with a further 3% increase noted between the first and second halves of the quarter. The quarter-ending price for Fatty Alcohol Ethoxylates CFR Ningbo in China stood at USD 2051/MT, reflecting the prevailing positive sentiment in the pricing environment. Overall, Q3 2024 concluded with a positive outlook, supported by robust market dynamics and strategic supply considerations.
Europe
The European market for Fatty Alcohol Ethoxylates experienced a mixed pricing landscape during Q3 2024. While consistent demand from the Personal Care sector provided a stable foundation, seasonal factors and rising production costs led to fluctuations. The Personal Care sector, a key downstream consumer, maintained steady demand, reflected in moderate inquiry levels for Fatty Alcohol Ethoxylates. However, manufacturers began to scale back their purchasing activities in anticipation of the holiday season and due to scheduled maintenance shutdowns. These factors led to temporary reductions in production levels across the industry. Despite these operational adjustments, the availability of palm oil remained sufficient to meet the needs of downstream sectors. However, prices for palm oil have been on the higher side, which contributed to increased production costs for Fatty Alcohol ethoxylate manufacturers. This pressure on costs has led to upward pricing adjustments in the market. In nutshell, the Q3 2024 pricing trend for Fatty Alcohol Ethoxylates in Europe reflected a complex interplay between steady demand from the personal care industry, seasonal production adjustments, and rising raw material costs. As manufacturers navigate these dynamics, prices are expected to remain elevated, influenced by the ongoing costs of palm oil and market conditions.
For the Quarter Ending June 2024
North America
In the second quarter of 2024, the North American market for Fatty Alcohol Ethoxylates faced a blend of challenges and stability. Demand from the downstream personal care and cleaning product industries was average, ensuring no significant price fluctuations. Rising crude oil prices, driven by OPEC+'s production cuts, pressured the cost of ethylene oxide, a crucial input for Fatty Alcohol Ethoxylates. This, along with increased wage demands and tight labor conditions, exerted pressure on production costs. However, the steady supply of fatty alcohol helped mitigate some of these cost pressures.
In June, Energy input costs, particularly WTI crude futures, stayed just below $82 per barrel, influenced by geopolitical tensions in Eastern Europe and the Middle East. The ongoing Israel-Hamas conflict, despite US-backed mediation efforts, remained unresolved, adding to the geopolitical uncertainty. Despite these headwinds, the availability of upstream raw materials was sufficient to meet the moderate demand from downstream industries.
With no major turnaround in procurement volumes, the operating rates of the manufacturing firms have remained under pressure. The absence of major disruptions, such as plant shutdowns, ensured that supply chains remained stable throughout the quarter. In summary, the second quarter of 2024 for Fatty Alcohol Ethoxylates was marked by average demand, rising production costs, and economic challenges, leading to a stable yet challenging market environment.
APAC
In Q2 2024, Fatty Alcohol Ethoxylates (FAE) prices in the APAC region experienced an upward trend influenced by various key factors. The primary drivers included robust demand from downstream personal care industries, which sustained market stability, and increased upstream Palm Oil availability, which ensured ample supply for manufacturers. Additionally, the rise in palm oil exports and crude palm oil stocks in major exporting countries further supported the manufacturing sector.
Focusing on China, which saw the most significant price changes, the quarter reflected a strong bullish sentiment. The consistent demand for FAE from personal care industries, combined with the government's proactive fiscal policies aimed at improving economic conditions, contributed to this trend. Ocean freight rates also played a crucial role, with rising costs due to adverse weather and shipping disruptions exacerbating the price increases. The manufacturing PMI indicated a contraction, reflecting production slowdowns and maintenance shutdowns, such as the unscheduled halt of operations at China Sanjiang Fine Chemicals Company Limited due to floods.
The overall trend in China showed a substantial price increase from the previous quarter, with a gradual 3% rise between the first and second halves of the quarter. The latest price at the quarter's end stood at USD 1958/MT for FAE 3 Mole EO CFR Ningbo, underlining a positive pricing environment driven by strong market fundamentals and supply chain challenges.
Europe
In the second quarter of 2024, the Fatty Alcohol Ethoxylates market encountered several challenges. Demand from major downstream sectors, such as personal care and cleaning products, remained weak, influencing the overall market outlook. The slow rebound in the personal care industry, along with sluggish economic activity, kept demand for Fatty Alcohol Ethoxylates below expectations.
Production costs were driven up by higher wage demands and tight labor conditions domestically, adding pressure on manufacturers. Additionally, the increase in crude oil prices due to OPEC+'s production cuts intensified market difficulties. The rising crude oil prices led to higher costs for ethylene oxide, a key ingredient in Fatty Alcohol Ethoxylates, further increasing production expenses.
Economic difficulties were compounded by stringent monetary policies across Europe, which suppressed economic activity and reduced purchasing power, resulting in weaker demand. Despite these challenges, the supply of upstream raw materials, including fatty alcohols, was sufficient to meet the limited demand from downstream industries. However, the operating rates of downstream manufacturing firms had not returned to their pre-pandemic levels, contributing to the overall weak demand. In summary, the second quarter of 2024 for Fatty Alcohol Ethoxylates was characterized by subdued demand, rising production costs, and economic obstacles, leading to a challenging market environment.
For the Quarter Ending March 2024
North America
In the first quarter of 2024, the North American market for Fatty Alcohol Ethoxylates exhibited a predominantly positive pricing environment. Several key factors influenced the pricing dynamics of this chemical during this period. One significant factor contributing to the market prices was the increased demand from various industries, particularly the Personal Care sector. This heightened demand created a bullish market sentiment, leading to higher prices. Additionally, limited supplies of finished goods and reduced operating rates of manufacturing firms added to the upward pressure on prices.
Moreover, the rise in upstream prices of Palm Oil further supported the increasing trend in Fatty Alcohol Ethoxylates prices. The tightening physical energy markets, driven by OPEC+ members' decision to extend production cuts, resulted in bullish Crude Oil prices. This, in turn, led to elevated manufacturing costs for Fatty Alcohol Ethoxylates.
In the USA, which experienced the most significant price changes in the region, the pricing trend was predominantly positive. While there was a slight decrease in prices compared to the same quarter last year, the prices increased significantly from the previous quarter in 2024. There was also a noticeable price difference between the first and second half of the quarter, with prices rising in the latter half.
APAC
The pricing environment for Fatty Alcohol Ethoxylates (FAE) in the APAC region during Q1 2024 has been influenced by various factors. Overall, the market sentiment has been mixed, with some regions experiencing price increases while others have seen declines.
In China, which has seen the maximum price changes, FAE prices have been on the higher end. This can be attributed to an uptick in demand from the downstream Personal Care industries, coupled with high prices of upstream Palm Oil. The limited availability of FAE and reduced production rates during the Spring Festival Holidays have also contributed to bullish market sentiments. In India, on the other hand, FAE prices have witnessed a decline. The low demand from the downstream Personal Care industries during the destocking season, combined with high supplies of FAE and lower prices of upstream Ethoxylates, have led to bearish market sentiment.
In terms of overall trends and seasonality, the market has seen a decrease in demand during the winter season, leading to lower prices. In China, the price of FAE 3 Mole EO CFR Ningbo at the end of the quarter was USD 1635/MT, reflecting the bearish market sentiment during this period.
Europe
In the first quarter of 2024, the market for Fatty Alcohol Ethoxylates in Europe experienced a period of increasing prices. Several factors contributed to this trend. The rising cost of raw materials, including Fatty Alcohols and Ethylene Oxide, played a role in driving prices higher. The limited availability of Ethylene Oxide further constrained supply, contributing to the price increase. The lower run rates of the manufacturing firms have led to relatively limited availability of the finished goods. However, the manufacturers have faced moderate pressures as the inquiries from the downstream Personal Care industries have remained average.
In Germany, which saw significant price changes in the region, prices trended upwards, consistent with the broader European market. Furthermore, towards March the demand from the downstream surfactant and Personal Care industries remained moderate. On the input energy front, the declining prices of TTF Natural have alleviated the pressure from the manufacturing firms.
Although prices decreased compared to the same quarter last year, there was a notable increase from the previous quarter in 2024. Prices remained stable throughout the quarter, with a slight increase from the first half to the second half of the period.
