Despite the uncertainties in China, the 2-Ethylhexanoic Acid shows an Uptrend globally
- 01-Apr-2022 2:21 PM
- Journalist: Patrick Knight
The global plasticizer sector is on an uptrend, as season demand has already started in most countries. Apart from this high demand from the respective market, global crude oil values have been putting pressure upon manufacturers' margins, making it less feasible to sustain profitability. As per the latest assessment by ChemAnalyst, the Global market has witnessed a significant hike in prices of 2-Ethylhexanoic Acid during the February-March timeframe, that varied from 1.3% to 3.6% in different economies.
In Asia, regional market sentiments bolstered all the positive price revisions in the market, as major Asian countries heard witnessing a significant growth in the economic activities coupled with seasonal offtakes in their respective market. As per the data, a hike of around 3.3% in Japan, 2.2% in Taiwan, 1.3% in India, and 3.6% in China was observed during the February-March timeframe, primarily driven by improved seasonal offtakes and rising input costs across the global market owing to soaring crude oil value. However, some other factors like prolonged maintenance turnaround by a Japanese giant, spiralling freight value, and market uncertainties due to the Russia Ukraine conflict also contributed to these hikes.
Meanwhile, in USA and Germany, the hike of around 3% was assessed by ChemAnalyst during the same period, bolstered by ample offtakes from the domestic market coupled with rising crude value in the country. In the USA, WTI crude breached the threshold of USD 100/b and reached the mark of USD 123.7/b on 8th March, which put inflationary pressure upon converters and consumers as well. Meanwhile, German manufacturers were under pressure due to the looming scarcity of natural gas across the regional market, which originated after the Russia Ukraine conflict escalated on 20th February.
As per the ChemAnalyst analysis, “ 2-Ethylhexanoic Acid prices are expected to remain buoyant across the global market under the influence of rising demand from niche buyers, supported by seasonal offtakes. However, the sudden rise in pandemic cases in China has pressured the government to impose lockdown restrictions to curb the infection rate in the country, which has allowed global crude oil value to decline. Conclusively, it would be interesting to see future market movement for global 2-Ethylhexanoic Acid, as the dynamics are changing rapidly. “