Prices of USA Nonylphenol Ethoxylates surging due to exorbitant prices of feedstock
- 17-Mar-2022 3:43 PM
- Journalist: Patrick Knight
In this week, the price of Nonylphenol Ethoxylates in the USA surged to record heights where the prices were USD 1924/MT Gulf Coast with a week-on-week inclination. Bullish crude and Natural Gas in addition to hastening conflict between Russia and Ukraine, raised the prices of feedstock Ethylene Oxide and Nonylphenol in the regional market, which potentially pushed the NPE prices.
Upstream crude oil market escalated to USD 110/bbl. An all-time high price with a jump of USD 12/bbl in just two days. This steep rise was a consequence of intensified Russia-Ukrainian war that could additionally cause supply disruptions taking the prices much higher than expected.
Furthermore, the robust consumer demand for Nonylphenol Ethoxylates is primely due to the improvement in hygiene maintenance after seeing the deadly pandemic, as its usage is associated with cleaning agents. It was heard that this gradual rise in the downstream surfactant demand affected the product inventory volumes across the region. High production costs because of surcharged energy caused the leading producer ‘Dow’, to announce increased base price in the domestic market expecting strong product futures. This revision was seen creating a supply-demand gap in the United States. Thus, improvement in the forecast period can be expected only if the product supplies increase, easing the end-user demand patterns.
As per ChemAnalyst, Nonylphenol Ethoxylate prices in the US will spike with rushing upstream crude and Natural gas prices. The feedstock Ethylene Oxide market is also poised to continue in an upward price trajectory together with increasing spot prices in the regional market. Improving consumption of Nonylphenol Ethoxylates in the cleaning sector for hygiene maintenance is a crucial factor expected to steer the revenue growth during the forecast period.