Weak Demand Puts Headwinds on the US and EU Nonyl Phenol Market
Weak Demand Puts Headwinds on the US and EU Nonyl Phenol Market

Weak Demand Puts Headwinds on the US and EU Nonyl Phenol Market

  • 27-Sep-2023 6:37 PM
  • Journalist: Harold Finch

The Nonyl Phenol prices experienced an overall weak market sentiment across the US and European markets during the second half of September 2023, based on the minimal procurement of the product in the downstream Nonyl Phenol Ethoxylates, surfactant segments. In addition, the downstream market has been adversely affected due to the oversupplied market across the US and Europe in the line of tepid economic conditions. Additionally, the downstream market players were cautious about the limited crude oil inventories, as a ripple effect reduced production run rates, reducing the Nonyl Phenol offtakes in the global market.

In the USA, the Nonyl Phenol prices were stable for the week ending 22 September 2023, as the downstream offers from the Surfactant industry were unchanged in the line of limited supplies. As per the latest insights, in the recent survey conducted by the American Chemical Council in the middle of the third quarter, it has been observed that the challenges faced by the US chemical manufacturing industry have shifted from supply restraints to regulatory burdens amidst weak purchasing sentiments in the international as well as the domestic market. Conclusively, the Nonyl Phenol manufacturers reported falling sales, reduced production, and weaker output, with a regional demand dwindling across major customer end markets in the H2 of the month.

The European Nonyl Phenol prices have fluctuated in a specific range towards the termination of September 2023 and stabilized this week after seeing oscillations in the price trend in the first half of the month. The pessimistic demand from the downstream surfactant industry in the line of weakening consumer confidence pulled the Nonyl phenol prices in the southward direction in the H2 of the month. Additionally, the ECB (European Central Bank) raised interest rates at a higher end to pause inflation in the country and improve economic conditions, which currently remained the external factor for the downstream bearish market situation. Meanwhile, the recent stagnancy in the Nonyl Phenol prices was primarily impacted by the modest demand-supply gap as the feedstock Phenol prices rose amidst elevated Crude oil values this week, and minimal downstream Ethoxylates demand across the European market.

As per the ChemaAnalyst, Nonyl Phenol prices may consolidate within the narrow range across the global market due to a marginal change in downstream Ethoxylates surfactant segment demand and adequate supplies. While the challenges may persist for the Nonyl Phenol industry, the downstream surfactant demand remains a glimmer of hope in the line of global headwinds in the year's later months.

Related News

The Global Nonyl Phenol Market Holds a Balanced Position for the Year Ending 2023
  • 28-Dec-2023 5:31 PM
  • Journalist: Nicholas Seifield