Diminished Demand and Lowered Propylene Costs Impact the 2-Ethylhexanoic Acid Market in Asia
- 16-Nov-2022 3:57 PM
- Journalist: Motoki Sasaki
2-Ethylhexanoic Acid's overall market sentiments in Asia appeared to be nearly identical for a few months and continue to follow a similar trajectory.
A number of factors impacted the 2-Ethylhexanoic Acid market in China. The shortage of power supply was the primary factor that lowered prices, affecting production activities in both upstream and downstream businesses. The businesses could completely halt or reduce their manufacturing activities.
Paints, beauty care products, and auto enterprises that utilize this item for their various manufacturing purposes were viewed as having an ostensible interest in this item in light of deficient power supply for downstream handling. Another factor is the implementation of the zero-covid strategy by various provincial governments, which significantly impacted both upstream and downstream companies' production rates. Therefore, on a spot ex-Qingdao basis, the average price of 2-Ethylhexanoic Acid in the second week of November was between USD 2,370 and 2,390 per MT.
In addition to these factors, the prices of 2-Ethylhexanoic Acid in China were affected by a decrease in the price of propylene as a result of the poor performance of the upstream crude oil market.
ChemAnalyst, on the other hand, projects a shift in the 2-Ethylhexanoic Acid market in China by the beginning of the coming year. It predicts that downstream businesses in both countries will place additional procurement orders for this product to manufacture end-products and that the market will expand by nearly 4% in January 2023.
Like the Chinese markets, 2-Ethylhexanoic Acid's market in Japan has been impacted by the lower prices of propylene used in its production and the moderate demand it was receiving from downstream businesses. Similar to China, Japanese markets moved in the same direction, and by the end of the year, ChemAnalyst anticipates a further 5.2% decline in the market.
In India, the market of 2-Ethylhexanoic Acid began to decline in the first week of August and has continued to do so to this day. The demand for 2-Ethylhexanoic Acid was getting from businesses for processing down the line was driving the Indian market. The prices of 2-Ethylhexanoic Acid were also influenced by lower prices for the raw materials used to make 2-Ethylhexanoic Acid. On a spot basis (ex-Mumbai), this product was approximately USD 2,460 per MT as of November 11, 2022. By the end of this year, ChemAnalyst anticipates that the Indian market will continue to fall by 3.21 percent, following in the footsteps of the Japanese market.