Global Detergent Alcohol price continues to rally upwards
- 22-Mar-2022 2:41 PM
- Journalist: Francis Stokes
Since the start of the month, the prices of Detergent Alcohol continued to beat the records to an all-time high value across the globe. This dramatic increase in the downstream oil and fat industry is the cause of a potential push from the ongoing Russia-Ukraine military conflict. The supply chain disruptions and trade shocks because Russia’s invasion of Ukraine led the oil industry to witness a jump of $2 on Monday.
In the last month, OPEC+ fell short of its oil production target by more than 1 million barrels per day (BPD) as the significant oil producers worldwide have stated that they are having difficulty in meeting their limits under a supply deal of the war. Saudi Arabia and the United Arab Emirates, the two OPEC members with the ability to rapidly increase oil supply, have so far resisted pleas from big consuming nations to increase their production to bring down soaring oil prices.
In addition, increased export levies and tight supplies of feedstock Palm Oil from major exporting countries like Malaysia and Indonesia have created havoc in the downstream derivative market. Despite strong feedstock Palm Oil prices that impacted the cost pressures of the downstream Detergent sector, the demand for Detergent Alcohols has been increasing with their enhanced usage in washing machine liquids, detergents, household cleaners, and personal care products to improve hygiene maintenance since the outbreak of Covid.
As per ChemAnalyst, the utilization rate of Detergent Alcohol is likely to increase globally in the forecast period on the back of the consistently increasing demand for the product. Indonesia, being the prime exporter of edible oil, has announced the removal of export restrictions against Palm Oil products on Friday, which straight-away hit progressive rates that might trigger global fluctuations in the futures of soaps and detergent industry.