Detergent Alcohol market witnessing bearish market sentiments this week
- 22-Apr-2022 6:00 PM
- Journalist: Bob Duffler
Since early April, the Detergent Alcohol market has been continuing a declining price trend in the global market. This fall was owing to the weak consumer sentiments and overall demand dullness for the downstream cleaning agents and cosmetics this month. In addition, the intensifying war situation between Russia and Ukraine has disrupted the market fundamentals of all the commodities, and Palm Oil derivatives are one of them.
The impact of accelerating geopolitical tension in the East European region has also triumphed in the second quarter. Even palm oil has become so premium that it is now compared to gold. Since the war started on February 24, sunflower oil supplies from the most prominent producers, Ukraine and Russia, have stopped causing the world to turn to Palm oil, the closest substitute. Thus, the Palm market has witnessed unprecedented price hikes with soaring global demand fundamentals. According to the Malaysian Palm Oil Board, the latest prices were USD 1750 per MT on a FOB basis in Malaysia, while Indonesia has set its reference price for April at around USD 1787 per tonne.
Even though upstream Palm Oil prices have stayed buoyant all through the first quarter, the sluggish demand from downstream detergent and personal care segments has contained the prices of Detergent Alcohol from rising any further in the international market. According to the ChemAnalyst Database, Detergent Alcohol price drops were assessed at approximately 3.6% in the United States, 2.3% in Germany, 2.2% in the United Kingdom, 2.2% in China, and 2.4% in India, this week compared to the previous month.
As per ChemAnalyst, “In the coming weeks, the prices of detergent Alcohol will continue to rally downhill with bearish market sentiments across the world. However, the uncertainties associated with Covid might increase the demand patterns for downstream cleaning products, which further may become the driving factors propelling Detergent Alcohol market growth in the near term.”