2-Ethyl Hexanol Price Shows Increase Trend in Europe After Six Months of Fall
- 29-Mar-2023 11:07 AM
- Journalist: Motoki Sasaki
The price of 2-Ethyl Hexanol (2-EH) in Europe has stopped falling this month after following a decreasing price trend for six months. In order to increase profit margins, producers want to get Propylene at more affordable costs in 2023; hence the market's attention has switched to contracts for that year. There were negotiations about reducing contractual obligations while increasing flexibility with spot volumes and negotiating lower costs on term contracts to raise the prices of 2-EH.
2-EH cost in the European region has been dropping since the start of the final quarter of 2022 due to poor demand for plasticizer products in the European and Asian markets. The oxo-alcohol markets have been severely impacted in Europe due to the growing indications of sluggish industrial activity and lower demand from the automotive sector. In 2023, worries about slowing global economic growth will still be prominent in European markets, weakening the prices of 2-EH throughout the first two months of this year.
Negative fundamentals were observed in Europe as Crude prices were dropping globally, and upstream Propylene spot prices remained relatively low. The first two months of 2023 witnessed the continued pressure on spot prices as European manufacturers of oxo-alcohol worry about beginning the year with large supplies that they were unable to clear owing to a lack of demand, further depressing the already oversupplied market. Poor performance of the downstream construction and automotive industry in European regions abetted the decreasing price trend of 2-EH.
According to ChemAnalyst, the 2-EH prices are expected to increase as downstream construction, especially commercial construction, steadily has increased demand for 2-EH in Europe. The recovered automotive industry in the European region played a major role in altering the 2-EH price trend as the commodity is widely used in plastics and coating used in the automotive sector.