Bullish Upstream Boosts German Ethoxylates Prices, Breaking January Stagnancy
Bullish Upstream Boosts German Ethoxylates Prices, Breaking January Stagnancy

Bullish Upstream Boosts German Ethoxylates Prices, Breaking January Stagnancy

  • 09-Feb-2024 2:30 PM
  • Journalist: Robert Hume

Hamburg, Germany: The prices of Ethoxylates have recently increased after remaining stable for several weeks in the domestic market of Germany. Ethoxylates maintained a steady price trend last month as average inquiries from the downstream Personal Care sector prevented manufacturers from making any significant price changes. Throughout 2023, Germany, a leading European economic powerhouse, faced significant economic challenges, including persistent inflation, volatile energy costs, and geopolitical tensions arising from the conflict in Israel. Furthermore, demand for Ethoxylates in the Asian market has also not escalated much, leading to price stagnation.

The ChemAnalyst database has shown that the prices of Ethoxylates increased by USD 30 per ton in the week ending on February 9th. Last week, as upstream Ethylene Oxide prices rose, the manufacturing costs of Ethoxylates experienced a bullish trend. Additionally, production cuts implemented in the last month have also affected the availability of Ethoxylates in the German market. This increase in costs and reduction in supply has resulted in a tighter market for Ethoxylates, potentially leading to higher prices for consumers and businesses. Furthermore, according to Gas Infrastructure Europe, gas storage facilities in Germany began the year with an above-average filling level of 91%. However, by mid-January, German stores were nearing 84% of their capacity to cater to the requirements of downstream manufacturing firms.

On the other hand, amid the commencement of the Spring Festival Holidays in China, procurement activities from downstream firms have remained suppressed. As the Spring Festival approached, markets in various parts of China gradually entered a state of shutdown and vacation, leading to reduced demand. Additionally, logistics have gradually closed, and road transportation has been hindered. Furthermore, upstream Ethylene Oxide prices have remained unchanged, contributing to a stable market environment. Moreover, the conflict in the Red Sea has increased shipping costs, transit times, and risk premiums for some crude oil shipments, bolstering bullish sentiment in crude oil prices. Additionally, labor shortages have intensified as workers return home, further reducing the operating rates of Ethoxylate firms.

According to the pricing intelligence of ChemAnalyst, the outlook for Ethoxylate prices in Germany remains cautiously optimistic. However, demand from the Personal Care industries is expected to improve with the progression of the first quarter of 2024, potentially leading to an increase in the pricing dynamics of Ethoxylates. In addition, upstream Crude Oil prices are likely to remain buoyant amidst supply disruptions, which is also expected to potentially impact the market dynamics of Ethoxylates.

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