A Dip in Downstream Demand Plunges the Detergent Alcohol Prices in Germany at the End of May 2023

Since the start of this month, the prices of Detergent Alcohol have been continuously dropping in one of the key regional markets in Europe. Following the ban imposed by the Indonesian government on Palm Oil supplies has led to stockpiling of the product in the domestic region and a subsequent reduction in the price offers for importing nations. India's imports of Palm Oil have plummeted to their lowest level in 27 months owing to sufficient availability to produce its downstream derivatives. On the other hand, the continuous inflationary pressures have been limiting the purchasing power of end-use industries across the Western market,  supporting the plunge observed in the price realizations of Detergent alcohol. As per the federal statistics agency Destatis, the German economy has shrunk by 0.3% over the first three months of 2023 amidst the concerns raised by high energy prices after the fallout between Russian and Ukraine.

The ChemAnalyst database has shown that the prices of Detergent Alcohol have declined approximately 4.5% on the week ending 26th March, compared to the prices observed in early May 2023. A drop in purchasing power, limited orders from the downstream industries, and the impact of the most aggressive monetary policy tightening in decades have dragged down the nation's economic growth. On the global front, the US debt ceiling has impacted the trade activities of various chemicals, including Detergent Alcohol. The market players have reported that the high Detergent Alcohol inventories have been inflicting them to reduce their quotations to boost new shipments.

Furthermore, as per the market sources, 261,000 tonnes of upstream Palm Oil were unloaded at various Indian ports in the first 20 days of May, and another 150,000 tonnes are anticipated to be discharged in the final 11 days, for a total of 411,000 tonnes. However, inquiries from the downstream surfactant industries have remained active in the domestic region. Hindustan Unilever, a significant downstream participant in the Detergent Alcohol industry, reported a 13% rise in consolidated net profits over the previous year to Rs 2,600 crore in the quarter ending March 2023.

According to the pricing intelligence of ChemAnalyst, the prices of Detergent Alcohol might witness a downward trajectory in the regional markets. The inquiries from the downstream surfactant and detergent industries might remain on the lower end foreseeing the economic volatility in the Western markets. In addition, the European market now has access to adequate natural gas on account of the moderate temperatures, and a recovery in China's market has reduced pressure on the cost of producing Detergent Alcohol.