During the week through August 1, 2025, the worldwide 2-Ethylhexanoic Acid (2-EHA) market showed a mixed trend of prices, with stability prevailing in the majority of regions whereas certain markets registered moderate gains in 2-EHA pricing.
In India, the 2-EHA prices were stable in the face of subdued market action, deviating from the ongoing 12-week downtrend. Well-balanced supply and demand situations, along with the absence of feedstock or transportation problems, prevented spot negotiations from changing. Buyers and traders posted level volumes as there were no fresh downstream or macro drivers, with prices likely to stay range-bound in the short term. In July 2025, the Federation of Automobile Dealers Association (FADA) witnessed a fall in retail numbers in different vehicle segments. These pessimistic moods dominating the large end-user industry have curtailed the buying activity for 2-EHA in the Indian market, a major ingredient utilized in automotive coatings and paint.
In a similar vein, China's 2-EHA prices remained stable due to a plentiful supply and cheaper feedstock prices for propylene, which also decreased production costs. But because of ongoing port congestion, inventories rose, forcing traders to concentrate on stock liquidation. With fewer than anticipated inquiries for 2-EHA both the domestic and foreign markets, demand remained mixed. According to data from the China Association of Automobile Manufacturers (CAAM), domestic car sales in China grew 14.7% year over year in July 2025 after rising 13.8% in June.
During the similar week under review, the price of Malaysian 2-EHA declined. Strong domestic supply and declining downstream consumption are the main causes of the current bearish mood. Stable product availability is ensured by BASF's operations operating at healthy utilization and its ample inventory. Meanwhile, uncertainty from tariff policies has limited buying interest, resulting in muted international demand, particularly from the U.S. While global port congestion and preemptive inventory buildups have further softened fundamentals, buyers are struggling with weak end-use demand, which has caused import prices in North America to slightly decline. The Malaysian market is seeing ongoing downward pressure on 2-EHA pricing into early August as a result of adequate stocks, consistent BASF output, and restrained U.S. buying amidst tariff headwinds.
Germany's 2-EHA market diverged from the generally stable world trend with a 1.30% week-on-week gain, spearheaded by strong domestic demand from coatings and lubricants markets. Seasonal restocking activity for 2-EHA also supported sentiment, as buyers showed willingness to take higher prices offered without any major prompting from upstream costs. In line with sentiments from market players, the demand pickup was supported in part by better performance in Germany's automotive industry, as official statistics indicated a significant increase in new car registrations last month. While this news is evidence of a fleeting pickup in market sentiment, analysts are more circumspect, pointing out that the wider recovery of Europe's largest car market is a long way off as macroeconomic headwinds persist.
According to ChemAnalyst, with port congestions, inflationary headwinds, and macroeconomic uncertainties still prevailing, the near-term prospect for 2-EHA is one of price stabilization or more gentle decreases.
