How Rising Oleochemical Values Affecting Defoamer Surfactant Prices in the Global Market
- 14-Apr-2022 8:06 PM
- Journalist: Jung Hoon
Defoamer Surfactant prices have risen substantially in the global market in early April due to a prominent rise observed in the costs of oleochemicals. In Europe, prices for Defoamer Surfactant showcased a firm trend in April due to the ongoing Russia-Ukraine crisis, which has led to a surge in the upstream palm oil and fatty acids values. Meanwhile, strong demand from the downstream detergent segment in the Asian market has been witnessed amidst the resurgence of Covid-19 in several Asian countries. Furthermore, delays in the supply of cargoes from several container terminals gateways have led to a sudden shortage of the material. The supply disruption has directly impacted buyers' profits at a strong demand pattern.
Demand for Defoamer Surfactant is robust due to consistent consumption in the downstream paints and coatings industry due to various construction projects initiated by governments in Asia. Moreover, a hike in the upstream palm oil cost by 6% also played an important role in supporting the values of Defoamer Surfactants in April. In Europe, the shortage of shipping containers amidst congestion on several interoceanic trade routes led to the high shipping charges, which ultimately affected the Surfactants market in the region.
The global supply chain experienced few disruptions due to congestion at several ports of China, such as Ningbo, amidst the resurgence of Covid in the country. In India, an exponential rise in the prices of Defoamer Surfactant is being observed due to expensive shipments amidst the crippled availability of shipping containers and insufficient production to cater to the demand.
As per ChemAnalyst, “prices of Defoamer Surfactants are likely to surge in the coming weeks due to the expected rise in the costs of upstream oleochemicals amidst the ongoing geopolitical Russia-Ukraine conflict”. Additionally, the fear of resurgence of Covid is also expected to increase the prices of Surfactant Defoamer as a result of the likelihood of an increase in the demand from the detergent segment.