Robust Offtakes leading to Global Detergent Alcohol Prices to Trace Uptrend
- 03-Jun-2022 6:17 PM
- Journalist: Nicholas Seifield
Louisiana, USA: The global Detergent Alcohol market showcased bullishness in the first week of June. Tightening supplies with shipment delays amidst strong export demand is the primary factor promoting price hikes in the international Detergent Alcohol market.
The raw materials used to manufacture Detergent Alcohol are usually sourced from Southeast Asian countries. Any fluctuation in the SE Asian feedstock market would impact the regional downstream surfactant and cosmetic players worldwide. Lower-than-expected supplies, higher demand, Brent crude oil price volatility, and geopolitical concerns are all factors influencing price direction, according to Mohd Izham, the Deputy Director of MPOC. He added that oil exports in 2022 are expected to be close to 97 million metric tons, with palm oil accounting for as much as 60%. On Wednesday, the Crude Palm Oil (CPO) futures contract on Bursa Malaysia Derivatives ended higher for the second day as market sentiment continues to be lifted by improved exports.
According to a Louisiana-based trader, lower production is projected in the following weeks, which can boost Detergent Alcohol prices. Thus, as per ChemAnalyst, the international price discussions for downstream Detergent Alcohol inclined towards the week ending 6th June.
On the other hand, Indonesia has relaxed its prohibition on palm oil exports two weeks back, but firms faced regulatory hurdles that slowed the process of getting their cargoes out till the last week. The delays in resuming shipments have resulted in plentiful palm fruit supply and low pricing for farmers, who protested earlier this month when palm fruit prices dropped by 70% in the Indonesian market.
As per the ChemAnalyst Database, global Detergent Alcohol prices may stabilize with gradually rising feedstock supplies from Indonesia and Malaysia. Additionally, with eased covid restrictions, Asia-Pacific is likely to dominate the Detergent Alcohol market in the upcoming weeks. However, the current market dynamics might change if the production decreases from top Palm oil exporters, which could negatively impact the regional surfactant players.