Key Oxo Alcohol manufacturer in Japan, JNC Corporation has recently announced scheduled maintenance turnaround on its 2-Ethylhexanoic Acid (2-EHA) production facility for forthcoming quarter. As per ChemAnalyst sources, the company has stopped providing quotations on spot purchases, as they have to maintain their inventories for May. This announcement has put further halt in availability while the product prices are already tracing an uptrend since January.

Rising inflationary pressure has been compelling manufacturers to raise their product prices in order to sustain their margin, which has pushed up prices of several commodities in global market. Furthermore, 2-Ethylheanoic Acid prices has been rising since January in Japanese market on the back of rising crude oil value coupled with firm offtakes from the domestic market. However, demand fundamentals varied with countries as different nations responded differently for ease in pandemic related uncertainties. Meanwhile, rising concern over geopolitical tension between Russia and Ukraine is already a key concern for world leaders, which is widening the gap between spot and contract purchases for crude oil and derivatives. Moreover, this maintenance turnaround has also opportune domestic traders to gain better margin by raising their offers on existing inventories.

As per ChemAnalyst analysis, prices are expected to remain buoyant for further period in Asia, as the demand fundamentals for the product is likely to remain stable to firm in the regional market. However, escalating political tension in Europe is also affecting future trade dynamics and pushing up prices most of crude derivatives. Conclusively, 2-Ethylhexanoic acid prices is anticipated to remain buoyant for further period in Japanese market, due to several reasons including maintenance turnaround by JNC Corp.