Asia's Fatty Alcohol Ethoxylates Market Tightens Amid Plant Shutdowns and Robust Personal Care Consumption
- 06-May-2025 8:15 PM
- Journalist: Stella Fernandes
As we enter into May 2025 the prices of Fatty Alcohol Ethoxylates in the Asia-Pacific region showed a strong upward trend especially in key markets like India and China. The consistent price rise for Fatty Alcohol Ethoxylates was mainly due to tight supply conditions that continued to affect the market. Suppliers faced ongoing disruptions which limited the availability of Fatty Alcohol Ethoxylates pushing prices higher. At the same time the demand side remained firm, with buyers showing strong interest through bulk spot purchases. These purchases were largely driven by steady consumption from the downstream personal care sector which has remained resilient in recent months.
The overall market for Fatty Alcohol Ethoxylates remained strong supported by active trading and a positive sentiment among suppliers and buyers alike. Many sellers increased their offers to benefit from the supply tightness and stable demand. One of the key reasons behind this bullish market was the rising cost of raw materials including Fatty Alcohol. In Southeast Asia, the price of fatty alcohol the main feedstock for Fatty Alcohol Ethoxylates climbed due to a decline in production amid lower inventory levels. These higher raw material prices passed down the value chain and added pressure to the Fatty Alcohol Ethoxylates market making the product costlier.
A major reason behind the reduced supply of fatty alcohol was the unexpected shutdown of two major plants in Malaysia. Edenor Technology and KLK OLEO located in Selangor were forced to halt operations after a gas pipeline fire disrupted the supply of natural gas on April 1. Edenor’s plant with production capacity of 80000 tonnes per year and KLK OLEOs with production capacity of 3000000 tonnes per year were adversely affected. As reported by Gas Malaysia Energy Services (GMES), around 190 plants faced gas supply cuts due to the fire. Moreover, it is expected that gas supply restoration will be delayed to at least July. This prolonged shutdown of upstream plants added further pressure on Fatty Alcohol Ethoxylates production and contributed to tighter supply and higher prices in Asia.
In the downstream personal care sector demand for Fatty Alcohol Ethoxylates remained strong. These non-ionic surfactants are widely used in shampoos, facial cleansers and lotions for their mild cleansing and foaming properties. Tracing back to March 2025 the personal care market in Asia continued to perform well driven by rising interest in climate-smart and wellness-focused products. Even though companies like Estée Lauder announced job cuts due to weaker travel retail sales particularly in China e-commerce platforms showed strong growth. For example, Beiersdorf reported a 1.9% increase in organic division with cosmetics sales concluding at €641 million across the Asian region. Their Derma business including the rollout of Epicelline® in over 15 countries also showed good performance. These trends reflected continued demand for personal care products indirectly supporting the Fatty Alcohol Ethoxylates market.
As per ChemAnalyst Pricing Intelligence, the price trend for Fatty Alcohol Ethoxylates in Asia is expected to remain bullish in the near term. With upstream supply limitations continuing and strong demand from the personal care sector prices of Fatty Alcohol Ethoxylates are likely to stay on the higher side of the spectrum.