Category

Countries

Better Sales from the Downstream Automotive Industry Improves the US and Brazil 2-EHA Market
Better Sales from the Downstream Automotive Industry Improves the US and Brazil 2-EHA Market

Better Sales from the Downstream Automotive Industry Improves the US and Brazil 2-EHA Market

  • 26-Sep-2023 4:14 PM
  • Journalist: Jung Hoon

The US 2-EHA market has marginally adjusted during early September on the back of improved sales from the downstream Automotive sales which slightly surged the demand for the product from the paints and coating industry. Likewise, the Brazil 2-EHA market has experienced a similar trend under the influence of the USA market.

Despite the decline in economic activities in the USA, the 2-EHA market marginally improved under the influence of new orders from the downstream automotive industry, which enhanced the prices of the product to settle at USD 2640/MT 2-EHA CFR New York during the first half of September 2023. As per Fred, the total vehicle sales in the USA increased by 1% in July to settle at 16.254 million units whose market sentiments are expected to follow the same trend during August too. Similarly, as per the trading reports, the Automotive sales volumes have improved by 2% in the USA during August which further strengthened the requirement of 2-EHA from the downstream paint and coating industry. The market sentiments of previous month are expected to carry forward during September too. Moreover, the unplanned shutdown of Chevron Phillips Chemical of feedstock propylene in Sweeny, Texas having a capacity of 165,000 mt/year further influenced the production cost of 2-EHA during this timeframe.

Similarly, the 2-EHA market of Brazil revived to settle at USD 2592/MT FOB Manaus during this timeframe after witnessing a continuous declining trend in the previous month amidst improvement in inquiries from the importing nations. Several new orders for 2-EHA from the downstream Automotive industry in the USA kept the Brazilian market healthy. According to the export data, the demand for 2-EHA in the US increased in this period, leading to a 9% increase in total Brazilian exports. Moreover, as per Instituto Brasileiro de Geografia e Statistical, the inflation rate of Brazil has increased by 0.23% during August, which is expected to showcase the previous market sentiments in September on the back of a mild uptick in new orders and a renewed increase in production value.

As per ChemAnalyst, the outlook for 2-EHA value seems optimistic amid the tight supply of feedstock propylene in the domestic market of the USA, which might surge the prices during the second half of September. As per the data, various unplanned shutdown of feedstock propylene plants shown in Texas during early September 2023 which includes Gulf Coast Growth Ventures in Portland, Dow Chemical in Freeport, and BASF Total Energies Petrochemicals in Port Arthur, having a capacity of 55,000 mt/year, 750,000 mt/year, and 550,000 mt/year respectively. This might hamper the availability of raw materials in the near term which could change the market dynamics of the USA and Brazil.

Related News

Globally 2-EHA Market Prevails Optimism as the demand Strengthen
  • 26-Feb-2024 4:11 PM
  • Journalist: Bob Duffler
Global 2-EHA Market Continue to Surge Amidst Rising Input Cost and Firm Demand
  • 22-Jan-2024 4:29 PM
  • Journalist: Peter Schmidt
Price Increase by OQ Chemicals Keeps 2-EHA Prices Buoyant in US Throughout November 2023
  • 04-Dec-2023 2:37 PM
  • Journalist: Gabreilla Figueroa
European 2-EHA Prices Rebound in November on the Back of Strong Automotive Demand
  • 28-Nov-2023 12:21 PM
  • Journalist: Francis Stokes