For the Quarter Ending June 2025
North America
• The 2-Ethylhexanol (2-EH) spot price in North America declined by 7.9% quarter-over-quarter in Q2 2025, reflected in a declining Price Index.
• Low demand conditions from the primary construction sector and automotive sector continued to remain the prime factor for the downward pull on the prices.
• Procurement activity remained as per need only basis due to lower offtakes from the paints and coating sector which kept the bearishness of the market mostly intact
• Trade war from the primary importer Chinese and North American markets led to sluggish export activity as buyers from Asia pulled out from market discussions
• Export conditions to the primary Mexican and Canadian markets remained low amidst a decline in weekly railcar loadings
• Suppliers were heard to have been moving backlogged inventories at lower prices
Why did the price of 2-Ethylhexanol (2-EH) change in July 2025 in the US?
• In July 2025, the Price Index of 2-Ethylhexanol (2-EH) was reported to have declined as procurements sentiments dampened during the official start of the North Atlantic Hurricane Season
• Post the 4th of July 2025 holidays suppliers were heard moving inventories at lower prices
• Uncertainty in trade conditions largely kept procurement from abroad low during the month which resulted in a downward pull to the prices
Europe
• The 2-Ethylhexanol (2-EH) spot price in Europe declined by 10.1% quarter-over-quarter in Q2 2025, reflected in a softer Price Index.
• Lower production costs witnessed as indicated by drop of 14% in the prices of feedstock Propylene.
• Low demand conditions from the primary construction sector continued to remain the prime factor for the downward pull on the prices
• Export demand and conditions remained sluggish amidst the Euro appreciation, congestions witnessed across the Northwest European ports which continued to impart a bearish pressure on the prices
• European originated 2-Ethylhexanol (2-EH) inventories faced competition from Asian and North American suppliers as Turkish buyers leaned away from higher priced European cargoes in favour of more attractively priced Asian and North American originated inventories.
• Despite producers have been heard maintaining curtailed run rates to lengthen the market situation, suppliers were heard moving backlogged inventories at lower prices which maintained the bearish conditions persistent in the market.
Why did the price of 2-Ethylhexanol (2-EH) change in July 2025 across Europe?
• In July 2025, the Price Index of 2-Ethylhexanol (2-EH) was reported to have decreased because of inactive market amidst the seasonal summer holidays.
• Suppliers were to have been moving backlogged inventories at lower prices leading toa broadly bearish market fundamentals.
• Market players have mostly expressed pessimism in the demand conditions from the construction industries and in the paints and coating sectors
APAC
• The 2-Ethylhexanol (2-EH) Price Index in the APAC region declined by 0.9% on a quarter-over-quarter basis in Q2 2025, primarily driven by a persistently oversupplied market, especially in Japan and surrounding East Asian countries.
• Material availability remained ample throughout the quarter, as the Japanese market experienced delayed cargo arrivals in April and steady inflows of Chinese-origin cargoes in May, which maintained downward pressure on the Price Index despite moderate domestic consumption.
• Feedstock Propylene prices trended downward across Asia during the quarter, aided by higher PDH (Propane Dehydrogenation) plant operating rates in June, which helped reduce input costs for 2-Ethylhexanol (2-EH) producers and contributed to a stable-to-soft Price Index.
• Demand fundamentals were mixed, with moderate support from paints and coatings applications amid intermittent construction recovery in April and May; however, a sharp decline in Japan’s housing starts in June and persistent weakness in the automotive sector curtailed any substantial upward momentum in the Price Index.
• Despite temporary supply tightness due to reduced exports from China and Taiwan in June, the impact was largely offset by falling upstream costs, stable freight rates, and subdued demand, ultimately keeping the Price Index on a mildly downward trajectory across the APAC region for Q2 2025.
Why did the price of 2-Ethylhexanol (2-EH) change in July 2025 across APAC?
• In July 2025, the Price Index of 2-Ethylhexanol (2-EH) was reported to have decreased as the seasonal onset of the rainy season across Asia continued to lead to weaker enquiries from customers
• Competitively priced inventories originating from China and Southeast Asia continued to enter at competitive prices amidst expansion in capacity and lower intra-Asia freight charges
• Chinese suppliers were aggressive in offloading existing inventories which resulted in Chinese suppliers moving their cargoes at lower prices across the broader Asian market
• The return of major producer and supplier in Taiwan namely Formosa Chemical to production during mid-July 2025 is likely to have improved supply conditions across the broader Asian market.
For the Quarter Ending March 2025
North America
The North American 2-Ethylhexanol (2-EH) market surged by 7.2% in Q1 2025, supported by gradual recovery in demand and constrained supply. In January, supply tightened due to maintenance at Nan Ya Plastics, while rising freight charges and anticipation of a potential port strike influenced pricing. Despite delays from Iso-Tank shortages, ample pre-strike inventories helped stabilize the market.
February saw price hikes by OQ Chemicals and Perstorp amid low imports from East Asia due to ongoing outages at key plants. Export demand improved slightly, but lingering inventories kept export prices subdued. In March, resumed production at major Asian plants and a 6% freight rate drop pressured import prices. However, domestic supply remained tight due to reduced US refinery run rates, leading to firm domestic pricing. Restocking and seasonal demand recovery from downstream plasticizer sectors, particularly DOP, supported the bullish trend.
Suppliers increasingly preferred domestic 2-EH to avoid potential tariff impacts. Overall, while imports became more affordable, domestic shortages and rising demand sustained price momentum across the quarter, positioning 2-EH as tighter than n-Butanol but more available than Iso-Butanol in the oxo-alcohol market.
Europe
The European 2-Ethylhexanol (2-EH) market witnessed an 8.1% price surge in Q1 2025, driven by higher production costs, reduced operating rates, and persistent supply constraints, despite sluggish demand from downstream plasticizer and coatings sectors. In January, ample inventories from year-end destocking in Germany and Belgium exerted downward pressure on prices. Supply remained adequate but lighter than n-butanol, and logistical bottlenecks at ports like Antwerp hindered cargo movement. In February, prices rose due to a 4.3% increase in Propylene costs and multiple outages at upstream plants. Producers maintained low run rates, some near 60%—while key manufacturers like OQ Chemicals and Perstorp Oxo-AB implemented price hikes. However, weak demand from adhesives, sealants, and construction chemicals persisted, with the construction sector in a downturn and firms reducing procurement. March saw a further 8% rise in Propylene prices, amplifying 2-EH costs. Continued supply limitations, low cracker operations, port congestion, including Red Sea disruptions, tightened availability. Demand showed slight improvement due to pre-spring restocking but overall remained weak. Suppliers were cautious, as construction and automotive sectors continued to have underwhelming performance.
APAC
The Asia-Pacific 2-Ethylhexanol (2-EH) market faced bearish conditions through Q1 2025, primarily due to weak demand from the paints, coatings, and plasticizer sectors. Despite minimal price depreciation, production outages and reduced output helped curb steeper declines. In January, limited imports and curtailed production due to maintenance at Nan Ya Plastics’ plant supported prices, while declining freight charges offset upward cost pressures. Propylene prices rose by 1.1%, but weak domestic consumption restrained price hikes. In February, supply remained abundant, boosted by post-Lunar New Year Chinese exports, including a 14,500 MT parcel from Tianjin. Despite price hikes by major global producers like OQ Chemicals and Perstorp, intense competition and falling freight rates (down 12%) prevented significant price increases. Additional supply disruptions due to force majeure at Nan Ya Plastics and maintenance at Hanwha Solutions tightened output but failed to shift bearish sentiment. In March, falling feedstock prices and rising PDH rates reduced production costs. Chinese suppliers cut prices further, increasing low-cost inventories. Japan’s persistent construction sector slump—reflected in declining housing starts—kept demand subdued. Overall, ample supply and weak demand sustained the bearish market outlook.
For the Quarter Ending December 2024
North America
The U.S. 2-EH market experienced mixed trends during the fourth quarter of 2024. Prices initially rose by approximately 2% in October due to disruptions caused by the hurricane season. Force majeure declarations at several U.S. Propylene production facilities led to reduced 2-EH production, pushing prices up during the early part of the quarter. However, as production conditions improved later in the quarter, prices fell by around 6%.
Export conditions remained unfavorable for much of the period, with the strike between the International Longshoremen’s Association (ILA) and the U.S. Maritime Alliance (USMX) resulting in vessel backlogs, leading to inventory accumulation at ports. Demand conditions showed mixed trends, with positive momentum from the automotive sector but bearish pressure from the construction sector's downturn.
Toward the end of the year, supply conditions improved as suppliers engaged in destocking to avoid inventory devaluation and year-end tax repercussions. While export conditions showed some improvement, the market remained largely oversupplied, limiting any significant price recovery. Additionally, export prices of 2-EH faced competition as approximately 1.3 million tons of oxo-alcohol capacity came online across Asia in December 2024. This led to U.S. suppliers importing attractively priced inventories from the Asian market, further exerting downward pressure on domestic prices.
Europe
During late Q4 2024, prices of 2-EH across the German market fell by approximately 15% due to ample supplies amid low demand conditions. Following OQ Chemicals' return to production in early May, the market struggled to recover from its bearish trend, as demand from primary sectors like paints and coatings remained weak. The downturn persisted throughout the latter part of the quarter, with destocking activities intensifying as early as mid-November 2024. Producers faced challenges in passing on higher feedstock Propylene costs to customers, further pressuring the market. Arbitrage opportunities in and out of Europe stayed largely closed, and inland trading encountered disruptions, exacerbated by maintenance at several ports in Northwestern Europe. These issues hindered product flow, leading to inventory accumulation and further price declines. Toward the year’s end, producers attempted to stabilize the market by reducing production, but these efforts were largely unsuccessful. The European 2-EH market was marked by limited outages and ample supplies as suppliers sought to move inventories in bulk to avoid tax repercussions. This effort to clear stocks became a dominant factor behind the persistent bearishness observed in the market.
APAC
During Q4 2024, the Asian 2-EH market experienced fluctuations, with prices rising by 1.2% early in the quarter before dropping 2.8% by its end. In Japan, production costs increased in November as feedstock Propylene prices rose by 1.1%, driven by maintenance turnarounds and limited PDH operating rates in South Korea. Supply constraints worsened as Taiwan’s Formosa Plastics and South Korea’s Hanwha Solutions cut production, while rising shipping costs pushed import prices higher. The Intra-Asia Container Index surged 45% in November, from $573 to $829 per 40ft container, amid pre-Christmas demand. JNC Corporation raised 2-EH prices by Yen 10,000/MT for October 2024 deliveries due to rising logistics and storage costs. However, sluggish demand from the paints and coatings sector, impacted by Japan’s weak construction activity, reversed the bullish trend. Additionally, over 1 million tonnes of oxo-alcohol capacity came online in China late in the quarter, driving prices downward. By year-end, the Japanese market faced a downturn due to high costs and subdued downstream demand.
For the Quarter Ending September 2024
North America
In Q3 2024, the North American 2-Ethylhexanol market faced significant challenges that led to a marked decline in prices. Key factors included supply disruptions caused by the ongoing hurricane season, which impacted production costs and contributed to the downward pricing trend. Additionally, weak demand from critical sectors such as construction and automotive further exacerbated the situation. Focusing on the USA, which experienced the most pronounced price fluctuations, the overall trend for 2-Ethylhexanol was decidedly negative. Prices dropped by 5% compared to the same quarter last year and fell 3% from the previous quarter. A comparison of the first and second halves of the quarter revealed an additional 2% decrease, highlighting a persistent downward trajectory.
Although Eastman Chemicals, a major producer of 2-Ethylhexanol, raised prices by USD 110/mt effective August 1, 2024, this increase failed to offset the overall market sentiment, which was dampened by weakened demand that did not recover amid seasonal fluctuations. Production disruptions from shutdowns in feedstock propylene added to the bearish environment, as did unfavorable export conditions stemming from strikes organized by the International Longshoremen's Association, which disrupted shipping and logistics. The ongoing hurricane season further complicated operations in vital manufacturing areas across the USA.
By the end of the quarter, the price for 2-Ethylhexanol DDP New York stood at USD 2,385/MT, reflecting the prevailing downward trend in the region's pricing landscape.
Europe
In Q3 2024, the European 2-Ethylhexanol market faced a dramatic downturn, with Germany leading the way in price declines. Several key factors contributed to this shift, including the return to full production by major manufacturers such as OQ Chemicals and an influx of supply due to enhanced production capabilities. The significant drop in feedstock propylene prices further reduced production costs, but demand from vital downstream sectors—particularly construction and plasticizers—remained tepid, putting additional downward pressure on market prices. August brought a brief respite from the downward trend as many propylene plants temporarily shut down for maintenance during the summer holidays, including a force majeure declaration by Shell Chemicals at its Moerdijk facility in the Netherlands. This disruption led to a notable decrease in 2-Ethylhexanol output across Europe. In response to persistent bearish conditions, OQ Chemicals attempted to stabilize the market by implementing a price increase of $110/MT in the European market. However, by September, most propylene plants had resumed operations, and the arrival of propylene cargoes from the Middle East and Asia created a supply glut, exacerbating the already negative market sentiment. The overall pricing environment for 2-Ethylhexanol in Europe during Q3 2024 was notably grim, with prices plummeting by 4% compared to the same quarter last year and a staggering 24% decline from the previous quarter. A comparison of prices from the first half to the second half of the quarter revealed an additional 3% drop, culminating in a quarter-ending price of USD 1,240/MT FOB Hamburg in Germany. This sharp decline underscores the challenges facing the European market as it grapples with oversupply and sluggish demand.
APAC
In the third quarter of 2024, the Asian 2-EH market experienced a pronounced bearish trend, with prices plummeting by over 23% by the quarter's end. This decline was primarily driven by an oversupplied market that continued to exert downward pressure on prices. Formosa Plastics Corporation, a key producer in the region, maintained its Mai Liao facility’s run rates at 100% capacity, producing 200,000 metric tons of 2-EH. Similarly, Luxi Chemical, with a production capacity of 300,000 metric tons per year, also kept its run rate steady at 100% throughout the quarter, contributing to an overall supply glut. This situation resulted in historically low prices for 2-EH across the Asian market. Despite moderate availability of feedstock propylene—which was expected to impact production—the continued high supply overwhelmed demand. Furthermore, a downturn in the construction sector limited demand from the paints and coatings industries, further exacerbating the price decline. The combination of abundant supply and subdued demand created significant challenges for the 2-EH market in the region.
FAQ’s
1. What factors influence the price of 2-Ethylhexanol (2-EH) in the market?
2-Ethylhexanol (2-EH) pricing is primarily influenced by feedstock costs (notably Propylene), supply-demand dynamics, production rates at regional oxo-alcohol units, international trade flows (particularly from China, Taiwan, and South Korea), and freight costs across intra-Asia routes.
2. How do fluctuations in Propylene prices affect 2-Ethylhexanol (2-EH) pricing?
As a key feedstock, Propylene price trends directly impact the production cost of 2-Ethylhexanol (2-EH). A decline in Propylene prices typically lowers manufacturing costs, which can lead to downward pressure on the 2-Ethylhexanol (2-EH) Price Index, assuming stable demand.
3. Why do import volumes from countries like China and Taiwan impact 2-Ethylhexanol (2-EH) prices in other regions?
Export volumes from major suppliers such as China and Taiwan significantly affect regional supply availability. Reduced exports from these countries can tighten supply in importing regions, potentially supporting or increasing the 2-Ethylhexanol (2-EH) Price Index, while oversupply from these regions can suppress prices.
4. What role does the construction sector play in determining 2-Ethylhexanol (2-EH) prices?
The construction industry is a major consumer of paints, coatings, and adhesives, which rely on 2-Ethylhexanol (2-EH) as a solvent. A surge or slump in construction activity directly influences downstream demand and can either support or weaken the Price Index.
5. How do logistics and currency fluctuations influence 2-Ethylhexanol (2-EH) pricing?
Port disruptions, freight cost changes, and currency movements (like a stronger yen or yuan) can affect landed costs of imported 2-Ethylhexanol (2-EH). These factors often shape supplier pricing strategies and, in turn, impact the overall Price Index in regional markets.
