China’s Fatty Alcohol Ethoxylates Market to Shoot Up from 1st June
- 31-May-2022 4:59 PM
- Journalist: Kim Chul Son
Shanghai, China: The domestic Fatty Alcohol Ethoxylates market in China has been experiencing stable market sentiments on the back of various factors. The rising cases of Covid had led to stricter control measures, which weighed on factory activities and demand till the last week.
Even with the recent announcement of an easing of Covid lockdowns, the pace of lifting restrictions remains very slow. The traders faced difficulties with skyrocketing upstream Palm oil and increasing demand-side concerns. The supplies were ample, with abundant inventories in the country. Consequently, as per our latest insights, terminal demand is likely to remain tepid in the near term.
According to monitoring data from ChemAnalyst, the domestic Fatty Alcohol Market showcased a marginal increment of 0.7 per cent in China. The surfactant trader margins remain squeezed as they could not achieve previous sales. They have been carefully monitoring Indonesia’s export ban on crude and Refined Bleached Deodorized (RBD) Palm oil, which has affected traders’ margins even after its removal. The logistic challenges from the top Palm oil-producing country continued against ongoing supply chain disruptions worldwide.
Meanwhile, the infection rate declined, and covid cases traced downhill in the recent weeks. The Chinese factory production has improved compared to the previous month. But a Shanghai-based trader quoted that the market growth will remain weak until the country eases its strict restrictions. Also, the market experts downgraded the forecasted economic growth of China.
Additionally, according to our sources, the construction of an alkoxylates joint venture with Petronas Chemicals at Kertih in Malaysia is on schedule. Production is expected to begin in the third quarter of 2023.
“The Fatty Alcohol Ethoxylates price is expected to rebound from 1st June across the Chinese market in the coming weeks. The terminal demand may increase in the short term with the expected resumption in domestic market activities. The utilization of existing inventories and the firm upstream market might keep the surfactant traders under cost pressure. Meanwhile, Indonesia is likely to reimpose the export embargo on Palm oil, which might impact the current market scenario." as per ChemAnalyst.