2-Ethylhexanoic acid prices skyrocketed in the Asian market during May
- 13-May-2022 9:58 PM
- Journalist: Jai Sen
Beijing, China: The cost of 2-Ethylhexanoic Acid surged in the Asian market with strong market sentiments and insufficient product availability. According to Chemanalyst data sources, product prices increased by 7.4% in China, 3% in Japan, 4.3% in Malaysia, and 1.8% in the Indian market during May 2022 compared with last month. Although, a downward trend in the feed Propylene prices was seen in the Asian region due to decreased upstream values impacted by US strategic oil reserves at the end of March 2022.
The demand for 2-EHA rose significantly from the plasticizer industries. An escalation in demand for plasticizer products was observed due to increased purchasing activities from the Construction Sector in the Asian region. From past few months, construction industry in India escalated with surge in the material costs in major cities like Delhi and Mumbai. As escalating fuel prices affected the market sentiments, consumers tried to shift to a more convenient option, the EV automobile, where 2-EHA is used in coolants.
The manufacturing and trading activities of 2-EHA also remained uncertain in the Asian market. Container clogging activities at the Chinese ports because of lockdowns due to China's zero-covid policy affected the trading activities in China. It also impacted the shipping activities from Taiwanese ports with constraints on logistics and surging transportation costs.
As per Chemanalyst data, “The prices of 2-Ethylhexanoic Acid are likely to remain firm in the Asian market in the forecast period. The demand for 2-EHA is expected to be consistent in the downstream plasticizer and paint industries. With increased fuel prices, manufacturing and trading activities are likely to recover in the Japanese and Indian markets, and the demand-supply gap is expected to narrow. As for the Chinese market, shipping activities are likely to recover in the upcoming period.