Phenoxyethanol prices in India softened in the first half of November after a 1.06% rise in October. The early November decline was due to slower offtake from personal care and cosmetics manufacturers who were cautious as domestic supply was steady. Comfortable inventory with distributors reduced the need for fresh purchases and hence the upward momentum was limited. Production at key plants was steady and hence the supply was adequate, and the market was balanced but mildly bearish. In October Phenoxyethanol Ex-Mumbai price increased due to firm Phenol feedstock prices despite soft Ethylene Oxide trend. Post monsoon normalcy at production sites and smooth logistics ensured smooth supply and hence the mild increase before November. Going forward market is expected to decline in second half of November. Slower offtake, adequate stock and cautiousness among downstream users will keep the pressure mildly bearish and the price movement will be moderate as long as supply and demand is balanced.
Phenoxyethanol prices in the Indian market softened in the first half of November after a slight increase in October. The early month decline was mainly due to slower offtake from downstream personal care and cosmetics manufacturers who were cautious in their buying as supply was steady. Distributors across major hubs had comfortable Phenoxyethanol inventory levels and hence there was no urgency to buy and hence no upward movement in the market. The Phenoxyethanol market was balanced but slightly pressured as buyers were buying for only essential needs. Domestic production was stable as well which added to the softening as there was enough Phenoxyethanol inventory in the region.
In October, Phenoxyethanol Ex-Mumbai had a modest monthly increase. The slight up move was due to increase in cost of feedstock Phenol which moved up with global energy and added to production costs. While Ethylene Oxide was flat, the feedstock offset allowed the Phenoxyethanol market to remain mildly firm. Post monsoon normalization of operations at major manufacturing sites helped to stabilize supply and improved logistics around Mumbai ensured smooth dispatches without any delays. The combination of stable production, manageable energy related cost pressures and reliable feedstock availability kept the market firm in the previous month and hence the adjustment in early November.
In the supply side, October market was operational. Mumbai based units were running at consistent levels due to easing of monsoon related constraints and better raw material coordination. Inventory cycles normalized as producers cleared earlier backlogs and hence Phenoxyethanol was flowing smoothly across the regional distribution network. Government’s emphasis on chemical self-reliance through incentive schemes encouraged domestic sourcing and hence there was no need for high volume imports and hence a stable supply base. Though feedstock fluctuations added to cost sensitivity, producers managed to produce efficiently without any disruption. Port operations were stable and hence both domestic and export commitments were serviced smoothly.
October demand for Phenoxyethanol was steady with personal care and skincare sectors continuing to buy for formulation needs. Phenoxyethanol remained a key preservative across creams, lotions and cosmetic blends and consumption was steady. However, downstream manufacturers were cautious in forward buying due to macroeconomic uncertainty. No big surge in new business was seen but replenishment continued uninterrupted for Phenoxyethanol. Adequate distributor stocks also reduced the need for big volume orders and the market was in a steady but controlled mode. Downstream industries performed well and Phenoxyethanol remained a key preservative throughout the month.
Into November the balance of supply and demand started to shift as Phenoxyethanol procurement slowed down. Many formulators decided to stagger their purchases as they expected stable supply and minimal price risk. This slowdown in market activity contributed to the early month decline and reinforced the cautious sentiment among traders and distributors. No strong restocking signals and stable local output allowed the Phenoxyethanol market to stay down without much volatility.
According to market experts Phenoxyethanol prices are expected to go down in the second half of November as procurement slows down and buyers delay their purchases. Comfortable stock levels of Phenoxyethanol among distributors will prevent any immediate upsurge and cautious sentiment from downstream users will keep the Phenoxyethanol market mildly bearish.
