What Made 2-EH to Tumble Several Months Low in India
- 13-Dec-2021 4:56 PM
- Journalist: S. Jayavikraman
Procurers might be happy with the fact that 2-Ethyl Hexanol (2-EH) prices have almost touched the bottom in Indian market, on the back of improved supplies and bearish demand fundamentals. Major Indian players have reduced their offers on spot purchases, compelling traders to negatively revise their prices to sustain offtakes. However, demand fundamentals have also remained muted under this seasonal lull post festive season in India. As per ChemAnalyst data, an astonishing fall of around 45% has been observed for 2-EH prices in last 3 months, where current prices were assessed to be more than 9 months low.
Global shortage and halts in imports from major exporting countries, was pushing up the price of 2-EH to a sky-high value till September, which started showing ease later on the back improved availability. Furthermore, despite of the festive season in India prices were heard declining from its previous skyrocketed value, as traders were receiving scheduled cargoes on time coupled with significant ease in freight cost. Analysing the recent scenario, major manufacturers like BPCL and Andhra Petrochem have been quoting lower prices since a long time across Indian market, which has been widening the window of negotiations between procurers and traders. On the perspective of regional market, mixed sentiments were observed for different countries, like in China significant pickup in demand was observed from downstream plasticizers manufacturers during October and November, while some other Asian countries were witnessing just opposite fundamentals.
As per ChemAnalyst Analysis, 2-Ethyl Hexanol prices are expected to remain rangebound for further period in India, as demand fundamentals are not showing any sign of improvement on the near-term basis. Meanwhile, traders and manufacturers are trying to empty their previous stocks by the end of this year while demand from downstream sectors have been wavering off since a long time.