Downshift in Upstream Palm Oil Prices Undermine the Market Growth of Detergent Alcohol

Downshift in Upstream Palm Oil Prices Undermine the Market Growth of Detergent Alcohol

Downshift in Upstream Palm Oil Prices Undermine the Market Growth of Detergent Alcohol

  • 11-Nov-2022 11:00 AM
  • Journalist: Motoki Sasaki

Detergent Alcohol market sentiments have been battered by sluggish demand in China and high energy prices in Europe. The slowing global economies due to raging inflation have deteriorated the price of Detergent Alcohol and its derivatives. However, despite the turbulent economic environment and lower crude and higher gas prices in Q3 compared to Q2 2022, one of the leading market players, Shell plc, has demonstrated robust performance with adjusted earnings of $9.5 billion and adjusted EBITDA of $21.5 billion.

In China, The COVID-19 pandemic has slowed down the consumption levels reported by downstream surfactant and detergent industries. The upstream Palm Oil prices have declined amidst the average market transaction from the world's top importer, China. Moreover, the build-up of inventories in Malaysia has also pushed the traders to slash their offers for importing countries. Additionally, the cumulative drop in the coking coal market due to weak procurement by manufacturing firms and the strengthening values of the US dollar has further pressured the market dynamics of Detergent Alcohol.

Furthermore, the ChemAnalyst database has shown that the prices of Detergent Alcohol in Germany have tumbled by USD 30 per tonne on November 11, 2022, compared to the prices observed in the first week of November 2022. The challenging economic conditions have a noticeable impact on Germany's export rate. The slowdown in the German manufacturing industry has affected trade with its partners, including China. In addition, the reduction in freight charges has been a negative impulse to the positive development in the price fundamentals of Detergent Alcohol among the manufacturers.

As per ChemAnalyst, the uncertainty in upstream Palm Oil prices is anticipated to prevail further and impact the manufacturing costs of Detergent Alcohol in the near term. The weak downstream purchases have clouded the market growth and are more likely to impose a downside risk to the pricing dynamics of Detergent Alcohol in the forthcoming weeks.



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