Uphill Ethoxylates Prices in the USA with Uncertain Feedstock Shipments
- 24-May-2022 2:29 PM
- Journalist: Patricia Jose Perez
Houston, USA: According to the latest monitoring data from ChemAnalyst, the Ethoxylates price has been rallying upwards across the United States. Domestic manufacturers were under pressure from unprecedented situations around the world. The uphill pricing trend was owing to the frequent price revisions made by the players, taking pressure from the soaring upstream Palm oil and Crude oil values.
The world's largest palm oil producer banned shipments of palm oil to cut surging local oil costs, upsetting global oil markets that are already dealing with sunflower oil supply constraints owing to the ongoing Russia-Ukraine conflict.
After a three-week suspension, Indonesian President Joko Widodo announced easing the export prohibition on crude palm oil and other derivative goods. Thus, Indonesia permitted palm oil exports to resume on Monday, expressing optimism that bulk cooking oil prices would eventually reach a target of 14,000 rupiahs (USD 0.96) per liter. However, shipments were not anticipated to begin until new guidelines aimed at assuring the domestic oil supply were finalized, as per our insights.
Meanwhile, Ethylene oxide, the second raw material used in the industrial synthesis of Ethoxylates, stayed buoyant with bullish market sentiments. With significant cost support from upstream crude oil, recovering Chinese demand, and rising domestic production costs, ethylene oxide prices strengthened across the domestic market.
Consequently, the Ethoxylates price soared during the current week in the United States. The manufacturing costs were also high with increased energy charges. Additionally, the overall demand fundamentals from various downstream industries, particularly surfactants and cosmetics, were very robust. Thus, the export demand also supports the upward price trajectory.
As per ChemAnalyst, "The Ethoxylates market in the United States is expected to further trace up in the near term. The domestic market players may possibly have to deal with tight supplies with no early sign of shipments from Indonesia. Strong offtakes from the downstream surfactant and cosmetic industries may further aid in boosting the pace of the overall price hike.