Fatty Alcohol Market Remains Bleakish in the United States
- 23-Jun-2022 4:31 PM
- Journalist: Francis Stokes
Louisiana, USA: According to the recent assessment by ChemAnalyst, the Fatty Alcohol market players were observed to be dealing with losses consecutively towards the fourth week of June in the North American region. This month, the price trend for the extensively used surfactant has continued downward in most countries, including the United States. The sliding upstream Palm oil value has negatively impacted all the palm derivative market players worldwide.
As the primary palm oil producer and exporter, Indonesia increased cargoes for clearing and has issued permits to export more than 1.4 million tons. With a surplus of reserves, Palm oil fell by approximately 9 per cent on Monday. At the same time, the resurgence of Covid lockdowns has caused the demand to worsen in the Asian market. Additionally, on Tuesday, Malaysian Palm Oil contracts tumbled for the fifth time in a row by 1.8 per cent to about 1,112 US Dollars per ton. Further entering a bear market, Palm oil value reached its lowest level since January thanks to rising Indonesian exports of palm oil.
Consequently, the downstream surfactant industries were negotiating on the Fatty Alcohol inventories they already have stockpiled in the previous weeks. As per our market sources, the terminal demand outlook has further weakened in the United States. Additionally, the country's rising temperatures were also unfavorable to the domestic Fatty Alcohol traders. Thus, the DEL Louisiana price discussions for Fatty Alcohol C12-C15 and C16-C18 were declining approximately 0.9% and 0.7% in the week ending 24th June.
As per the ChemAnalyst expert's assumptions, the market dynamics of Fatty Alcohol might not showcase any robustness in the coming weeks across the United States. The surging Indonesian exports are forecasted to challenge Malaysian cargoes in the near term. With higher-than-expected availability of raw materials, the downstream Fatty Alcohol traders will not show interest in purchasing new stocks.