US Detergent Alcohol Prices Soar in November Amid Increased End-User Inquiries

Texas, USA: The prices of Detergent Alcohol have witnessed an upward momentum in the USA's domestic market. With the advancement of US economies towards stabilization, the consumption power of the terminal personal care industries has been reinforced. In addition, the weaker ringgit and expected production cuts in the key manufacturers of upstream Palm Oil in Malaysia have been prompting upward pressure on the price realizations of its downstream derivatives such as Detergent Alcohol, etc. In addition, the inflationary pressure has started to ease, alleviating the strains from the purchasing power of the terminal Detergent Alcohol industries. During their most recent policy meeting, officials from the US Federal Reserve reached a consensus to approach the matter with caution, committing to raising interest rates only if the progress in controlling inflation encountered obstacles.

The ChemAnalyst database has shown that the prices of Detergent Alcohol have increased by approximately USD 50 per ton in the week ending 24th November. The Detergent Alcohol traction has gained momentum amidst the increase in consumption from the downstream Personal Care industries. In addition, the rising costs of Palm Oil have further pressured the price realizations of Detergent Alcohol to remain buoyant. Furthermore, Indian purchasers have reduced their orders for palm oil intended for December and January shipments. This decision comes from escalating prices and refiners encountering unfavorable profit margins due to extensive imports made in recent months.

As per the observed market scenario, restocking fundamental chemicals and synthetic materials essential for diverse manufactured goods increased slightly in September in the United States after a prolonged destocking phase. However, this uptick was counteracted by a decrease in the production of specialty chemicals, including Detergent alcohol. As per the American Chemistry Council (ACC), there was an upward trend in the Global Chemical Production Regional Index (CPRI) by 0.6% in September, following a revised increase of 0.6% in August.

On the other hand, El Nino is expected to impact major upstream Palm Oil-growing regions in the second half of 2024, leading to a minimal growth of 0.2 million tonnes in production for 2023-24. This is significantly lower than the 2.5 million tonnes average annual growth seen in the past decade, as moisture deficits linked to El Nino affect parts of Indonesia from August to October, pressuring the manufacturing costs of Detergent Alcohol.

According to the printing intelligence of ChemAnalyst, the prices of Detergent Alcohol might remain on the upper end in the US market. The rise in inquiries from the downstream Personal Care sector, coupled with a hike in upstream raw material prices, is expected to accelerate the pricing dynamics of Detergent Alcohol in the forthcoming weeks. In addition, the limited production rate in the previous quarter is also likely to exert pressure on the supply dynamics of Detergent Alcohol in the US market.