Global 2-EHA Prices Hold Steady in Early June 2025 Amid Balanced Supply-Demand Dynamics
- 10-Jun-2025 9:00 PM
- Journalist: Kim Chul Son
The worldwide market for 2-Ethylhexanoic Acid (2-EHA) showed sustained price stability in the period up to June 6, 2025, as no major price fluctuations were observed in major markets like China and India. The trend is that of steady supply levels, reducing feedstock prices, and subdued domestic as well as global demand.
Chinese 2-EHA prices remained steady with well-balanced supply-demand conditions in place, during the review period. Soft raw material prices—particularly of 2-Ethylhexanol (2-EH) and Propylene—curbed production costs and maintained secure feedstock supplies, thereby alleviating any urge for price increases. Even though the local auto industry posted a strong set of performances, with a 10% month-on-month increase in passenger vehicle sales and a 14% gain in electric vehicle sales in May, total downstream demand for 2-EHA from industries like paints and coatings remained soft.
Expectations of higher exports to North America were dampened by below-forecast volumes despite the availability of a short-term 90-day tariff window. This deficiency resulted in built-up inventories in the Chinese market. Consequently, dealers preferred to keep stable price levels for 2-EHA to sustain competitiveness and push purchasing demand. Further, congestion at key Chinese ports—such as an increasing number of ships at Shanghai, Ningbo, and Qingdao—added to operational challenges, further deterring aggressive price action.
Concurrently, the Indian market replicated this stability in 2-EHA prices. Local manufacturing remained uninterrupted, supported by sustained feedstock availability and well-functioning ports. Adani Ports achieved a record high cargo throughput of 41.8 million metric tonnes in May, a year-on-year growth of 17%, which provided for uninterrupted material movement and stable inventory levels. This, just like in China, provided for no near-term supply-side drivers of price adjustments for 2-EHA.
Demand for 2-EHA in India stayed flat but soft, especially from the auto industry. Sales of vehicles in May were down 3.3% compared to the previous month, with entry segments of vehicle sales taking a significant hit as financing became tight and consumer confidence was eroding. Also, geopolitical issues along border states didn't help sentiment on the buy side. On the international side, demand out of the western markets is still listless due to continued inflation factors plus too much inventory lingering around.
In summary, the worldwide 2-EHA market is in limbo, with firm prices supported by sufficient supply, declining production costs, and modest downstream demand.
As per ChemAnalyst, the prices of 2-EHA are expected to dip in the near term owing to expectations of persistently low demand amidst economic uncertainties and inflationary pressure.