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.
For the Quarter Ending December 2023
North America
During the fourth quarter of 2023, Fatty Alcohol Ethoxylates prices in the North American region have seen an upward trend due to increased interest from the downstream Personal Care industries. This has strengthened the market fundamentals of Fatty Alcohol Ethoxylates, driven by the recovery in demand from these sectors.
The supply of finished goods has been adequate to meet demand, despite manufacturing firms not operating at full capacity amid inflationary pressures. While there has been limited support from Ethylene Oxide in terms of costs, the rise in palm oil prices, a key raw material, has potentially impacted the production expenses of Fatty Alcohol Ethoxylates. However, a decrease in energy prices, especially natural gas, has helped alleviate manufacturing costs.
In terms of market sentiment, the decision of the US Federal Reserve to maintain stable interest rates for the third consecutive time has contributed to the recovery in the US markets. The US economy has shown resilience, with improved economic conditions supporting the market fundamentals of key raw materials. Overall, Fatty Alcohol Ethoxylates prices have remained stable, prompting manufacturers to make slight price adjustments to protect their profit margins.
APAC
In Q4 of 2023, the prices of Fatty Alcohol Ethoxylates have demonstrated mixed market fundamentals. In October, the market players were cautious about the Golden Week Holidays, leading to increased inquiries to the exporting nations. As a result of rising demand from the Chinese market, the manufacturers in Indonesia and Malaysia (Key Exporter of Palm Oil and its Derivatives) have raised their quotations. Furthermore, in November, the prices of Fatty Alcohol Ethoxylates gained upward momentum in the domestic market of China. Considering production, the operating rates of Fatty Alcohol manufacturing firms have not fully rebounded. However, despite the lower operating rates, the manufacturers faced no significant supply-side pressure as the global demand from the downstream Personal Care industries remained subdued. In late qa4-END, The decline in inquiries from the downstream Personal Care sector has reduced the demand for Fatty Alcohol Ethoxylates, as a result, its price prices dropped. On the upstream front, the prices of Palm Oil have also dropped lower exports as a result of weak destination demand and low trade The year-end holidays and the destocking season have traditionally reduced industrial activity and lowered demand for raw materials.
Europe
Throughout the fourth quarter of the year, the prices of Fatty Alcohol Ethoxylates in Germany have shown a fluctuating pattern, marked by an initial rise followed by a subsequent decline. This mixed movement in prices can be attributed to several key factors impacting the market. Ongoing inflationary pressures have pushed costs higher, influencing the pricing dynamics of Fatty Alcohol Ethoxylates. Additionally, subdued demand from downstream industries has added to the challenging market conditions, as these sectors have struggled to maintain strong levels of consumption. In terms of production, manufacturers have not been operating at full capacity due to moderate demand from downstream industries. However, the supply of Fatty Alcohol Ethoxylates has been adequate to meet the needs of the Surfactant and detergent sectors. In December, there was a sluggish pace of inquiries from downstream Surfactant and detergent industries, which has not led to any significant improvement in the market fundamentals of Fatty Alcohol Ethoxylates. Most transactions have involved smaller orders, prompting manufacturers to consider cost-cutting measures in response to both inflationary pressures and a persistent decline in demand.
For the Quarter Ending September 2023
North America
In the US market, the prices of Fatty Alcohol Ethoxylates have exhibited a volatile market trend. In the first half of 2023, The demand from the downstream surfactant and detergent industries has stayed at a moderate level and has not been enough to push the pricing dynamics of Fatty Alcohol Ethoxylates higher. The market participants have reported that inventories were sufficient and could cater to the terminal demand. The new orders were limited, and the market operated at low levels. On the upstream front, the Palm Oil market was oversupplied, which has resulted in price cuts for end-use industries. However, the prices of Fatty Alcohol Ethoxylates started to improve in the second half of Q3. One of the leading manufacturers of Surfactant products, Dow Chemical, announced an increase in surfactant prices in North America from September, potentially by around $0.22 per kilogram. In addition, with its latest quarter-point increase in July, bringing the policy rate target range to 5.25%-5.5%, The Fed has reduced the frequency of rate hikes to stabilize the market operations across the domestic region of the USA.
APAC
Average consumption from the downstream Personal Care sector has kept the market sentiments for Fatty Alcohol Ethoxylates bearish in early Q3 in the domestic market of China. The stockpiles of upstream Palm Oil in the key manufacturing nations, Indonesia and Malaysia, amid increased output and favorable weather conditions, have led to price adjustments for the procuring nations, including China. The stocks of finished Fatty Alcohol Ethoxylates goods were sufficient to meet the demand from the downstream industries. Amidst a slowdown in economic conditions across the nation, the operating rates of manufacturing firms remained under pressure to maintain market balance. Moreover, the freight charges remained at the lower end amidst a slowdown across major regional markets. Furthermore, towards the end of the third quarter, the prices of Fatty Alcohol Ethoxylates have started to gain momentum. Demand from the downstream personal care sector has been observed to have risen, boosting market sentiments. As reported by market sources, downstream manufacturers have been willing to replenish their inventories before the Golden Week Holidays. Consequently, FAE 3 Mole EO CFR Ningbo prices were settled at USD 1780 per ton in September.
Europe
Through the third quarter of 2023, the prices of Fatty Alcohol Ethoxylates have demonstrated mixed market sentiments in the German market. The decline in consumption from the downstream Personal Care sector has led to a decline in the procurement of Fatty Alcohol Ethoxylates. On the upstream front, The sluggish Fatty Alcohol market has been driven by the broader trend of abundant supplies and weak demand from the downstream surfactant and detergent industries. Additionally, inflationary pressures have diminished spending capacity within the manufacturing sector, leading to reduced consumer willingness to make purchases and dampening the overall demand for Fatty Alcohol Ethoxylates. On the other hand, The increase in upstream Ethylene Oxide has translated into price gains for Ethoxylates. In addition, the production cuts incorporated due to the holiday season last month have resulted in relatively low availability of finished goods to meet the demand from the downstream Personal Care industries. Thus, the prices of Fatty Alcohol Ethoxylates have increased towards the end of the third quarter of 2023.
For the Quarter Ending June 2023
North America
The prices of Fatty Alcohol Ethoxylates have remained on the lower end at the start of the second quarter of 2023. The declining prices of Fatty Alcohol have inflicted the manufacturing costs of Fatty Alcohol ethoxylates to settle lower in the US market. The demand from the downstream surfactants and detergent industries was also average and insufficient to cause a major shift in the pricing dynamics of Fatty Alcohol Ethoxylates. The weak demand from the downstream surfactant and detergent industries combined with declining values of upstream Palm Oil has impeded the market growth of Fatty Alcohol ethoxylates in the US market. The manufacturers were forced to slash their offers as the demand showcased no significant growth. In addition, inflationary pressures have deterred consumer demand. The supply-chain constraints have been eased, and the logistics were restored. The shipping costs from North Europe to North America East Coast have declined amidst a slowdown in the global trade of chemicals. Furthermore, on the input energy front, the increased production of Natural Gas in the US market has led to a decrease in prices for the end-use industries. As a result, the manufacturing costs of several specialty chemicals have been reduced including Fatty Alcohol Ethoxylates.
APAC
In the domestic market of China, the Fatty Alcohol Ethoxylates prices have demonstrated mixed market sentiments. After demonstrating robust growth in the manufacturing sector in mid-Q1, the market sentiments have slowed down entering the second quarter. The inquiries from the downstream personal care industries have also plummeted, thus inflicting the manufacturers to revise their quotations. On the upstream front, the cost support from Fatty Alcohol and Ethoxylates was insufficient. The availability of FAE stocks was at a higher end in the domestic region. The downstream production facilities were operating at slightly reduced rates to maintain market balance as the inventories were optimum to cater to the terminal demand. According to data from the National Bureau of Statistics, the official manufacturing purchasing managers’ index (PMI) has remained in the contraction zone (Below 50 Points) throughout the second quarter of 2023 amidst weak global economic growth. Furthermore, the stockpiles of upstream Palm Oil in the key manufacturing nations, Indonesia and Malaysia, amid increased output and favorable weather conditions, have led to price adjustments for the procuring nations, including China. In addition, The slowdown in economic activities amid the Dragon Boat Festival in mid-June has further pressured the trade activities of various chemicals, including Fatty Alcohol ethoxylates.
Europe
In Germany, the prices of Ftty Alcohol Ethoxylates progressed in the northwards direction in early Q2. The cost support from upstream Fatty Alcohol and ethoxylates was on the higher end amid the backdrop of relatively high manufacturing costs. The inquiries from the downstream surfactant and detergent industries have settled higher and reinforced the market dynamics of Fatty Alcohol Ethoxylates. Although, The rising Crude Oil prices in April after the production cut decision taken by OPEC+ members have compounded the market challenges concerning the direction of inflation and the appropriate amount of interest rate increase for the maintenance of the market balance. Additionally, the upstream Palm Oil has also imparted positive cost support as its supplies were limited amid the export ban by the key manufacturing nation, Indonesia. However, towards the second half of Q2, The limited offtakes from the downstream surfactant and detergent industries weakened the market sentiments, and as a result, the Fatty Alcohol Ethoxylates market operated at low levels. The German economy has been battered by continued inflationary pressure, which has been curbing the purchasing power of end-use industries.
For the Quarter Ending March 2023
North America
The prices of Fatty Alcohol Ethoxylates have demonstrated mixed market sentiments in the US market. With the global economic slowdown, the demand for Natural Gas has started to decline, easing the input cost pressures on the price realizations of Fatty Alcohol Ethoxylates. However, the cost support from upstream Fatty Alcohol and Ethoxylates was limited as the contrary price trend was observed in Q1. Furthermore, the inquiries from the downstream surfactant and detergent industries were moderate and didn’t support the upshift observed in the offers at the end of the first quarter. The freight charges were on the lower end amid an over-availability of containers at the US ports. Moreover, the financial sector worries amidst the failure of two banks have constrained the market growth of Fatty Alcohol Ethoxylates in Q1-end.
APAC
In the domestic region of China, the prices of Fatty Alcohol Ethoxylates (FAE) have demonstrated a volatile price trend. After the exemption of COVID-19 restriction in early Q1, the manufacturing activities have started to streamline. The spring festival holidays have further impacted the production and logistics across the nation as a limited workforce was available. With the expansion in the manufacturing sector, the purchasing manager index has also settled above 50 points in mid-Q1. However, the demand from the downstream surfactant and other end-use industries remained moderate as there was already enough material availability to carry out production. On the upstream cost front, the prices of Ethoxyates and Fatty Alcohol also prompted downward pressure on the price realizations of FAE. However, in late Q1, the prices of FAE improved amid the tight availability of feedstock Palm Oil, reported by market participants. Therefore considering the aforementioned reasons, FAE 3 Mole EO CFR Ningbo prices were settled at USD 1960 per ton in March.
Europe
With the start of the first quarter, ease in input cost inflation was triggered by falling TTF natural gas costs. The production costs have started to decline, alleviating the pressure from the price realizations of Fatty Alcohol Ethoxylates (FAE) in the German market. However, in order to rein the spiraling inflation, which has curbed the purchasing sentiments of end-use industries, the European Central Bank has tightened its monetary policy by increasing its interest rates. Furthermore, the demand from the downstream surfactant and detergent industries didn’t escalate much and remained on the lower end. However, towards the end of the first quarter, the price realizations of FAE have inched higher amid a rise in the market value of upstream Fatty Alcohol and Ethoxylates. The supply of raw materials was relatively tight, and the shortage of skilled workforce further compounded the market challenge for Fatty Alcohol Ethoxylates at the end of the first quarter.
For the Quarter Ending December 2022
North America
The prices of Fatty Alcohol Ethoxylates have observed a volatile trajectory. In the first half of Q4, the prices of upstream Fatty Alcohol were narrowed down, and the weak demand from the downstream surfactant and detergent industries at the terminal end has led to the accumulative of inventories. In November, the cost pressures from the upstream raw materials increased, and the market sentiments for Fatty Alcohol strengthened. However, towards the end of the fourth quarter, the destocking season and reduced transactions from the end-use industries have resulted in the inflow of low-priced goods in the US market. Additionally, the prices of Fatty Alcohol and Ethylene Oxide have plummeted, and the FAE market entered a downward channel in December.
APAC
In the fourth quarter of 2022, the prices of Fatty Alcohol Ethoxylates have demonstrated mixed market sentiments. The decline in demand from the downstream surfactant and detergent industries has led to a reduction in the manufacturers’ quotations. The production activities across the domestic region have also dropped, coupled with declining freight charges across Asia’s major trade routes. Furthermore, towards the end of Q4, the prices have improved as rising covid cases have hampered the supply-chain dynamics. In addition, the rise in upstream Ethylene Oxide has also supported the increment in Fatty Alcohol Ethoxylates prices in the domestic region. However, on the demand side, the market has operated at low levels. Consequently, FAE 3 Mole EO CFR Ningbo prices were assessed at USD 2205 per ton in December.
Europe
Fatty Alcohol Ethoxylates prices have been observed to be on a bearish run in the German market. Plummeting prices of upstream Fatty Alcohol and muted demand from the downstream surfactant and detergent industries have obstructed the rise in the market values of Fatty Alcohol Ethoxylates. Furthermore, the manufacturing plants were in normal operation, and there has been an active movement of goods in the domestic market. At the same time, the spot resources were abundant and could cater to downstream inquiries. In addition, inflation has escalated above the mark of 10% and pressured the market sentiments of several commodities, including Fatty Alcohol Ethoxylates.
For the Quarter Ending September 2022
North America
In the USA, the Fatty Alcohol Ethoxylates prices fluctuated in the third quarter of 2022. The economic challenges brought on by rising inflation and curtailed availability of input materials in the domestic region have impacted the market fundamentals of FAE among the downstream manufacturers. The natural gas prices first fell and then significantly increased in mid-Q3 due to rising inquiries from European nations. The natural gas prices fell by 6% in September, inflicting the manufacturing cost to reduce. However, the supply chain has been eased, and inflationary pressures have improved in the domestic region. The prices of upstream Palm Oil have also been crippled in Asian countries, and the manufacturers have improved the material at reduced prices.
Asia- Pacific
Fatty Alcohol Ethoxylates prices have escalated in the first half of the third quarter in the domestic region of China. The resurgence of COVID cases and crippled manufacturing activities have impacted the price realizations of Fatty Alcohol Ethoxylates. As a result of stagnant domestic consumption and uncertainties in the terminal sector, the Chinese economy experienced a W-shaped recovery in early Q3. Furthermore, the upstream Ethylene Oxide and Palm Oil prices also fell, prompting negative cost support on the market values of Fatty Alcohol Ethoxylates. However, the prices deteriorated in September amid the slump in upstream crude oil prices and slackened demand from downstream surfactant and detergent industries. Prices of FAE 3 Mole EO CFR Ningbo were assessed at USD 2340 per ton in Q3-end.
Europe
In the third quarter of 2022, the Fatty Alcohol Ethoxylates prices demonstrated mixed sentiments across the European region. In early Q3, the stocks of FAE increased as new orders diminished from the downstream surfactant and detergent industries. Apart from rising energy prices brought on by the conflict between Russia and Ukraine, many industrial companies had difficulty filling orders due to an acute lack of upstream raw materials. In September, the Purchasing Manager Index (PMI) fell to 47.8 amid the deterioration in terminal demand and soaring energy costs. The supply chain constraints and high-power costs have further impacted the trade activities for Fatty Alcohol Ethoxylates in the regional market of Europe.
For the Quarter Ending June 2022
North America
The Fatty Alcohol Ethoxylate (FAE) market in the North American region remained bullish during the second quarter of 2022. The inflation majorly caused this market development after the U.S, and the E.U, with the support of G20 nations, imposed sanctions on Russia. The cost support from the upstream fatty alcohol and oil market remains persistently on an upward trajectory, although some relief was bought due to the COVID shutdown in China that eased the PKO prices. The contract negotiations diverge against competing for feedstock and supply/demand fundamentals in the domestic market. However, prices of FAE reduced during the second half of June amidst the easiness in the PKO cost.
Asia Pacific
During the second quarter of 2022, the Fatty Alcohol Ethoxylates market in the Asia Pacific was bearish. The resurgence of COVID in China forced the authorities to impose the shutdown, which was prolonged for three months in northeast China. Therefore, the Fatty Alcohol Ethoxylate supply chain disruption significantly impacted the inquiries for the PKO. A major market source stated that the Chinese players in the Southeastern market were absent for a significant period. In response to the lower cost support from the upstream PKO coupled with the slowed demand in the Chinese domestic market, weakened the sentiments of the Fatty Alcohol Ethyoxylate producers, and the quotations were dropped in the Asia Pacific region despite the ongoing ban on the exports of the Indonesian Palm Oil.
Europe
In the second quarter of 2022, the Fatty Alcohol Ethoxylate market in the European region observed a mixed sentiment that varies across the region. The retaliatory measures against Russia have resulted in a record high inflation in the European markets. Buyers were more keener toward procuring the finished goods than manufacturing as the demand has significantly dropped in the European markets amidst the holiday season. In addition, the discussions for palm oil in the domestic market eased significantly. As a ripple effect, the discussion of Fatty Alcohol Ethoxylates varies across the sub-regions in Europe.
For the Quarter Ending March 2022
North America
In the North American region, Fatty Alcohol Ethoxylates (FAE) prices continued to trace an upward trajectory in the first quarter of 2022. The market remained buoyed by raw material scarcity, logistic disruption, and various production constraints in the region. Following a fire accident at ExxonMobil's Baytown refinery in late December, refinery's activities were halted, resulting in a supply deficit of upstream olefins. As a result, considerable price revisions were observed in the domestic market. Accordingly, raw material costs were dragged by the high upstream pricing, which was transferred to feedstock. Thus, offers for FAE were assessed as USD 2817/MT in the United States towards the end of the quarter.
Asia Pacific
Fatty Alcohol Ethoxylates market entered the first quarter of 2022 with an upsurge in the prices and maintained the uptrend throughout the period. Stronger feedstock values in the international market and supply shortage due to limited imports from Malaysia kept the prices on the higher side. Closing December floods in Malaysia have squeezed palm oil production so intense that the downstream industries and trade activity crippled this quarter. Asian buyers were heard turning to Indonesia, a competitor country, to obtain Fatty Alcohol Ethoxylates stocks. In the meantime, the demand for the product in Chinese downstream cleaning industries continued to spiral with a broader and stronger Omicron impact. Conclusively, the pricing for Fatty Alcohol Ethoxylates 3 Mole was assessed at USD 2654/MT EO CFR JNPT in India during March, after registering a hike of 3.1% from the prices assessed in the last quarter.
Europe
During the first quarter of 2022, the Fatty Acid Ethoxylates market witnessed a bullish pricing trend in the European region. The worsening economic crisis, set against the backdrop of the Russia-Ukrainian conflict, caused this upward trend. Because of the restricted freight movements linked with the war in the entire region, the PCC company (Poland), a leading exporter, could not obtain raw materials from Russia. As a result, the regional Fatty Alcohol Ethoxylates market and the downstream surfactant and cosmetic industry were hit by limited product supplies from Poland. In addition, the German prices of FAE reached USD 3260/MT FOB Hamburg in March, owing to supply constraints and inflationary pressures in the bullish raw material market.
For the Quarter Ending December 2021
North America
In North America, prices of Fatty Acid Ethoxylates started the fourth quarter on firm note based on the substantial price hike of energy feedstocks. Proportionally, upstream Ethylene Oxide and Fatty Alcohols displayed a remarkable spike in prices because of limited material availability in the market. Feedstock EO prices remained strong as volatility about energy feedstocks that continued to hover predominantly over petrochemical industry. Increased penetration of Fatty Acid Ethoxylates into the international market, growing production of ethoxylates based products as per DowDuPont Inc., Huntsman International LLC, and continuously growing pharmaceutical sector, have supported the healthy supply-demand fundamentals of the product. The increased consumption of cosmetics and personal care products was also observed owing to the improved lifestyle, which significantly effected in price rise in North America.
Asia Pacific
Fatty Alcohol Ethoxylates (FAE) market in India entered the fourth quarter of 2021 with an upsurge in the prices. The stronger feedstock in the overseas market and supply shortage due to limited imports from Malaysia caused the prices to stay buoyed in October. The Malaysian floods have affected the feedstock palm oil production to a severe extent causing the downstream industries, especially surfactant industry and their export activity to cripple. With an increased demand-supply gap resulted from Malaysian import dullness, buyers in India were shifting to the contender country Indonesia for acquiring Fatty Acid Ethoxylates stocks. Thereby, Fatty Acid Ethoxylates market stabilized in the month of December as the demand from the domestic market remained satisfied, while availability also remained ample enough to fulfill the overall demand in the region. The prices fluctuated between USD 2529.74/MT in October and USD 2506.92/MT in December FAE 3 Mole EO CFR JNPT (India).
Europe
During the fourth quarter of 2021, the Fatty Acid Ethoxylates market has witnessed an upward price trajectory in the European region due to a steady increase in the feedstock Fatty Alcohol and Ethylene Oxide prices. The skyrocketing palm oil feedstock prices in the global market also overwhelmed Fatty Acid Ethoxylates prices in the region. In the fourth quarter, major contributors to the regional market growth were Germany, Italy, Spain, France, and U.K, catered the demand against the pandemic. In addition, the freight charges for the international expresses from Asia Pacific region to Europe are currently staggering to all time high and induces additional costs support in the domestic quotations of Fatty Acid Ethoxylates.
For the Quarter Ending September 2021
North America
In Q3 2021, Fatty Alcohol Ethoxylates (FAE) values experienced an upward rally in North America. Inflation in the pricing trend of FAE was supported by the soaring upstream prices as well as the firm demand from downstream manufacturers in the third quarter. Constrained availability of Fatty Alcohols and Ethylene Oxide due to the supply chain disruption and lower production rates as an impact of Ida hurricane in August end has adversely affected their prices across the region. Thus, Fatty Alcohol Ethoxylates market outlook appeared to be bullish with robust demand and tight fundamentals in this timeframe.
Asia
In the Asian market, Fatty Alcohol Ethoxylates prices witnessed an upward trend during Q3 of 2021. In India, Fatty Alcohol Ethoxylates market encountered squeezed supplies of the feedstock backed by the delayed imports from major exporting countries such as Malaysia and Indonesia which resulted into the hike in the prices of FAE in the regional markets. In addition, skyrocketing freight charges further sent ripples to the prices of FAE in India. Besides, the demand from the downstream sectors remained firm throughout the quarter which also exerted pressure on the Fatty Alcohol market in India. Therefore, Fatty Alcohol Ethoxylates Ex Mumbai prices rose to USD 2734.46 from USD 2629.09 from July to September.
Europe
In Europe, Fatty Alcohol Ethoxylates prices remained firm throughout Q3 backed by the constant rise in the feedstock Fatty Alcohol and Ethylene Oxide values. Moreover, many manufacturers in Europe were compelled to curtail their production rates due to the natural gas crisis that further exerted burden on the FAE market. Delayed imports from Asian countries because of the congestion on several ports of China followed by the coronavirus zero tolerance policies also aided the spike in the values of FAE in this timeframe in Europe during this quarter.
For the Quarter Ending June 2021
North America
Fatty Alcohol Ethoxylates (FAE) prices-maintained buoyancy during this quarter, backed by firm demand from downstream surfactant manufacturers in the North America region. However, the feedstocks Ethylene Oxide and Fatty Alcohol showcased mixed sentiments during this period. Fatty Alcohol prices remained bullish throughout the quarter in USA, due to firm demand and expensive imports from Asia. The overall price trend of FAE remained bullish, supported by firm offtakes and high feedstock prices in USA, during this quarter. In addition, logistical issues further added value in the prices of FAE, amidst tight supply of fatty alcohols.
Asia
The demand of Fatty Alcohol Ethoxylates (FAE) showcased bearish sentiments during this quarter in APAC region, due to reduced demand from downstream surfactant manufacturers. However, manufacturers from China exported more than 1014 MT to Indian downstream surfactant manufactures during the month of June. Overall import activities remained muted in May, under the pressure of pandemic in India. In addition, compared to the previous quarter, imports of FAE increased to almost double in Q2 2021, while most of the shipment were traded from China to India. The reason behind this rise in imports was inadequate availability of FAE in the country, as importers were planning to procure cargoes for future demand in domestic market. Therefore, overall scenario created a jump in prices of FAE in the Indian market, where the price settled at USD 1735/MT for C18-22 and USD 1705/MT for C16-18 in India during June.
Europe
Rise in feedstock fatty alcohol prices supported the uptrend of Fatty Alcohol Ethoxylates (FAE) in Europe during Q2 2021. While the demand from downstream surfactant sector remained bullish throughout the quarter, backed by improving offtakes from domestic end users. However, ready availability of FAE remained low in the region that increased the demand for imports. While the imported feedstock prices were higher than the previous quarter, due to extreme rise in prices of upstream palm oil in Asian countries like Malaysia. Therefore, the overall price trend of FAE remained high in Europe during Q2 2021.
For the Quarter Ending March 2021
North America
Shortage of feedstock chemicals compelled makers to raise their FAE prices across the region. Under winter freeze in the US gulf coast several plant operations remained idled, creating acute shortage of feedstock Ethylene Oxide (EO) and Fatty Alcohols. More than 65% of EO production was observed halted which led to rise in its prices. In addition, low availability and fuming prices of palm kernel oil (PKO) drove the prices of Fatty Alcohols to crazy high. Continued shipping delays, persistent labour shortages and tight shipping lent a strong support to price curve. While the demand for downstream surfactants remained well support many consumers awaited lift in raw material plant shutdowns. Shell confirmed to lift the force majeure at its linear alcohols and ethoxylates plant at US Geismar, Louisiana, by the end of April.
Asia
In the Asian markets, sufficient availability and high demand amid soaring feedstock prices, caused fluctuation in the prices Fatty Alcohol Ethoxylates (FAE). Due to consistent increment in the upstream crude oil value, prices of downstream chemicals also increased including feedstock EO in the region. In addition, Chinese Lunar New Year holidays and container shortages across prime trade routes drove the prices of several chemicals to rise effectively including FAE. In the meantime, the price of Fatty Alcohol Ethoxylates (FAE) kept oscillating and hovered around USD 2207.7/MT in the Indian market.
Europe
The European countries also faced the shortage of feedstock EO and Fatty Alcohols, which ultimately skyrocketed the prices of Fatty Alcohol Ethoxylates, finding key usage in surfactants. Huge shortage and crazy high prices of palm oil further supported the prices of fatty alcohols, and volatile prices of EO due to shortage of Ethylene also marked a steep rise during the quarter. In addition, all these factors, battered with high freight and container cost, compelled the prices of Fatty Alcohol Ethoxylates (FAE) to gain a significant value.
For the Quarter Ending December 2020
North America
Buoyant performance of the surfactant industry propped up the regional Ethoxylates production as manufacturers reported high plant utilization rates and improved sales. Upstream Ethylene Oxide and Fatty Alcohols showed significant jump in prices due to limited material availability. Traded volumes remained affected due to constrained ocean logistics in the last three months of the year, keeping the CFR prices significantly up from the previous quarter. The quarter started with a mega deal between two chemical giants-Lyondellbasell and Sasol wherein the former proposed to buy 50% stake in the latter’s newly constructed Lakes Charles project. As per the deal, Sasol will retain its alcohols, ethylene oxide/ethylene glycol, and ethoxylation plants, and hand over 50% stake in its ethylene cracker and in LDPE and LLDPE plants to Lyondellbasell.
Asia
Realizations for FAE were pegged higher than the previous quarter amid traders turning cautiously optimistic on the demand front. Acute volatility on the raw material front which seemed oscillating in terms of pricing over periods of time significantly raised FAE offers for Q1 2021. Malaysian palm oil prices jumped straight to eight-year highs in November after hampered production levels in October. Demand from the cleaning sector seemed buoyant after restocking activity from the buyers took a big leap before the year-end. The raw material surge triggered a sharp spike in Fatty Alcohol offers in India which were averaged around USD 1665 per tonne in December. Some producers expressed anticipations that reduced annual palm harvest in Southeast Asia will put upwards pressure on the regional market even in the next quarter.
Europe
The European FAE market remained weighed under supply chain disruptions despite some unplanned cracker turnarounds during the quarter ending September. Abrupt surge in the Asian Fatty Alcohol rates starting mid-November raised the overall production cost for the European FAE producers. While volatility in the feedstock palm oil prices continued to pose the industry at risk, resilient demand for surfactants raised the regional offers. The Malaysian Petronas Chemicals Group (PCG) and the German chemicals and energy company PCC entered into a strategic partnership to construct the oxyalkylates (ethoxylates and polyether polyols) facility within the Kertih Integrated Petrochemical Complex, Terengganu. The construction is likely to begin in 2021.
