Detergent Alcohol Market Continues to Take Pressure from Upstream
- 13-May-2022 9:43 PM
- Journalist: Nicholas Seifield
Jakarta, Indonesia: The global surfactant sector has been hampered by inflationary pressures and market volatility caused by various circumstances. The uncertainties associated with upstream Palm oil have been the major influencing factors.
Also, the demand is firm across all the regional markets because the inventories were falling short with healthy terminal user consumption. According to the latest monitoring data of ChemAnalyst, Detergent Alcohol prices continued to rally upwards again in the global market.
Our sources revealed that the recent export halt from the top exporter, Indonesia has become a concern for all the Palm derivative players. As to soften the soaring prices across the domestic market, Palm Oil shipments were banned from 28th April. Consequently, the supplies tightened, and prices further heightened in the global market.
After the interview, a key US-based player revealed that the ban is likely to be temporary as Indonesia's palm oil production is much higher than its local requirement.
Meanwhile, Malaysia has increased its delivery to try to fill the hole left by Indonesia due to rising global commodity prices. In the first ten days of May, it increased supply by 40 percent compared to the same period in April.
"Even so, it won't be able to meet Indonesia's demand, which accounts for more than 50% of worldwide palm oil exports," ChemAnalyst says.
Additionally, Malaysia is considering reducing its export taxes this month to ease the global supply crisis.
However, as a Domino effect, the downstream Detergent Alcohol prices remained under pressure for the reasons mentioned above.
Conclusively, "The global Detergent Alcohol market is expected to trace upwards in the coming weeks. The market players might have to deal with tight supplies with robust demand fundamentals. If the Indonesian export ban continues for a longer period. In that case, the Detergent Alcohol market may witness a sky-high pricing trend in the near term," as per ChemAnalyst.
However, it would be interesting to see how the market sentiments change in the coming days. Please stay connected with us to know more about Detergent Alcohol market.