Category

Countries

European Nonylphenol Ethoxylates Market Grapples Amidst Sluggish Demand in Late Q4
European Nonylphenol Ethoxylates Market Grapples Amidst Sluggish Demand in Late Q4

European Nonylphenol Ethoxylates Market Grapples Amidst Sluggish Demand in Late Q4

  • 12-Dec-2023 2:05 PM
  • Journalist: Timothy Greene

Hamburg, Germany: The prices of Nonylphenol Ethoxylates have been witnessing several headwinds in the European market. Tighter financing conditions and weakening domestic demand are critical reasons behind the deceleration of business activity for Nonylphenol Ethoxylates in the past quarters. The persistent inflationary pressures have taken a toll on the purchasing power of the consumers, resulting in lower purchases from the downstream Surfactant and detergent industries. Additionally, the reduction in upstream Ethylene Oxide has further pressured the costs of Nonylphenol Ethoxylates to settle lower.

As per the ChemAnalyst database, the prices of Nonylphenol Ethoxylates demonstrated a decrease of USD 30 per ton in the week ending 08 December. The manufacturing activities have slightly strengthened in the German domestic market, leading to sufficient availability of finished stocks of Nonylphenol Ethoxylates to meet the demand from the terminal market. As per the market sources, European Nonylphenol Ethoxylate consumption trends have suggested a slower recovery from the post-COVID era, with current levels below last year's average. The energy-intensive industry sector in Germany has also demonstrated minimal signs of recovery, remaining largely stagnant throughout the year.

On the other hand, in September, the ECB raised its rates by 25 basis points for the tenth time since July 2022, totaling 450 basis points, with the deposit rate now at 4.0 percent. This might be the final increase if inflation hits the 2 percent target soon. However, considering tough financing conditions and a slower economy, the ECB will likely maintain these rates until the year ends. On the input energy front, Gas flows to Germany are consistent and in equilibrium, with only minor withdrawals from storage. According to Gas Infrastructure Europe, Germany's total gas storage stands at 91.85%, indicating a robust supply and balance in the gas reserves, fulfilling the needs of downstream manufacturing firms, including Nonylphenol Ethoxylates.

According to the pricing intelligence of ChemAnalyst, the prices of Nonylphenol Ethoxylates are expected to narrow down in the German market amidst the lackluster demand from the downstream Surfactant and detergent industries. The market players are also willing to destock their Nonylphenol Ethoxylates inventories before the beginning of next year's production activities. In addition, the reduction in natural gas prices amid the above-average inventories coupled with the mild winter season is also likely to exert downward pressure on the price realizations of Nonylphenol Ethoxylates in the forthcoming weeks. Moreover, no major restarts are anticipated in Europe before 2025 unless there is an unexpected surge in demand in the region.

Related News

German Nonylphenol Ethoxylates Prices Progress Northwards in March 2024
  • 02-Apr-2024 4:56 PM
  • Journalist: Jung Hoon
Amid Escalated Raw Materials Prices, Nonylphenol Ethoxylates Prices Edge Higher in Mid-March 2024
  • 14-Mar-2024 2:55 PM
  • Journalist: Francis Stokes
European Nonylphenol Ethoxylates Prices End February High, Early March Witnesses Stagnation
  • 04-Mar-2024 2:48 PM
  • Journalist: Francis Stokes
Bullish Upstream Boosts German Ethoxylates Prices, Breaking January Stagnancy
  • 09-Feb-2024 2:30 PM
  • Journalist: Robert Hume