For the Quarter Ending March 2022
North America
The USA, a major importer of 2-Ethylhexanoic Acid from Germany and Brazil, witnessed a market surge in price in the first quarter of 2022 due to an increase in freight charges in the exporting countries. Quarterly growth of 6% was seen with rising feedstock and energy costs because of Russian invasion in Ukraine leading to increase in the value of 2-Ethylhexanoic Acid. The upstream market of butyraldehyde and 2-ethyl hexanal also saw a spike in the price. The pace of economic growth in transportation and manufacturing affected the demand prospects, and dramatically, crude oil market sentiments swung changes in economic fundamentals. In the USA, the price of 2-Ethylhexanoic Acid surged to USD 5331/ton CFR New York.
Europe
The price of 2-Ethylhexanoic Acid in Europe rose in Q1 2022 with strong market sentiments and insufficient supply. The product price towards the start of the month in Q1 was observed to be USD 3680/ton FOB Hamburg. An increase in consumption and demand from the downstream market, such as catalysts, dyes, and construction materials, are contributing to the surging prices. Freight charges increased, and a decrease in supply and inventories further pushed the prices. The price of upstream crude oil responded to more significant price moves to be brought into the market.
Asia Pacific
In Asia, the price of 2-Ethylhexanoic acid surged because of the lower supply of raw materials and surge in the price of crude oil due to the Russia-Ukraine war. In China, demand for the product from the domestic market has been stable throughout February, while inadequate supplies due to Lunar holidays and movement restrictions pushed prices up. High imports in Asian countries and exorbitant exports from Japan increased the price of the product. Overall, the cost of the product rose in China, India, Japan, Malaysia, and Taiwan. In China, the price of 2-Ethylhexanoic acid towards the last month of the quarter was observed to be USD 2560/ton Spot Ex-Qingdao.
For the Quarter Ending December 2021
North America
2-Ethyl Hexanoic Acid offtakes remained stable across North American market during Q4 2021. Global key players heard revising their offers for North America too, which also opportune domestic traders to improve their margin under the shadow of these trend setters. However, USA market remained less competitive compared to other countries of Asia and Europe. In the meantime, OQ chemicals raised their offer by more than USD 500/MT effective from January 2022. Furthermore, Perstorp also raised their offers to future purchases by more than USD 240/MT effective from January 2021. However, effect of these hikes has already been observed across US market.
Asia
Asian market witnessed mixed sentiments for 2-Ethyl Hexanoic Acid prices, which varied country over country during this quarter. Major manufacturers heard revising their offers to sustain their profitability as high input cost remained a major factor behind these hikes. However, demand from the domestic downstream industries remained stable to firm throughout Q4 2021. Meanwhile Japanese giant KH Neochem announced stopped providing price quotations due to maintenance turnaround on their 2-Ethyl Hexanoic Acid unit. Furthermore, China also imposed production cuts on the back of dual energy policy during November and later for winter Olympics during December. Conclusively, 2-Ethyl Hexanoic Acid price remained firm during this quarter in Asian market which assessed around USD 2733/MT in Japan during December.
Europe
Rising feedstock and energy costs led to an increase in the prices of 2-Ethyl Hexanoic Acid in Europe. As Natural gas is the main energy source in Europe and entire Europe was facing abrupt escalations in the material cost, several chemical producers in eastern Germany were on the verge of shutting down their plants as they are coping with the recent spike in energy prices during October. To meet the market dynamics, Perstorp AB, which is a major manufacturer of 2-Ethyl Hexanoic acid increased its product prices for all regions with effect from November. Furthermore, OQ chem announced price revision during the first week of December, which would be applicable from January 2022. Conclusively, 2-Ethyl Hexanoic Acid price hovered around USD 4290/MT FOB during mid of December.
In 2021, post Q2 the demand for 2-Ethylhexanoic Acid registered a sharp rise in the North American region. However, the supply was restricted as the threat of delta variant of COVID continued to weigh over supplies across the region in Q3. There was a major rise in the demand for raw materials after the occurrence of climate calamities disrupted supplies during Q1 and Q2 in the US Gulf region, which led to an increment in 2-EH Acid prices across North America. Many players announced the shortage of raw materials as the demand hiked in the Q3 from the automotive, chemicals, paint, and coatings, along with the rising demand from the construction sector.
During the third quarter of 2021, the prices of 2-Ethylhexanoic Acid witnessed an upsurge in the Asia Pacific region. In China, due to the shutdown of the major port Ningbo-Zhoushan in August, prices of 2-Ethylhexanoic Acid in the Asia Pacific region were largely impacted leading to the disruptions in the demand and sales of the key end-user industries. 2-Ethylhexanoic Acid price trend in Taiwan escalated in Q3 as the prices rose from USD 3414 to USD 3522 per MT CFR Kaohsiung from July to September. The Taiwanese 2-Ethylhexanoic Acid price chart showed a stable range across Asia despite significant gains noted in the Swedish stocks due to raw material tightness. The demand and supplies remained firm from the downstream pharma and other end-use industries. Export demand in Japan also observed an uprise in the 2-Ethylhexanoic Acid market.
During the Q3 in 2021, the supplies of the 2-EHA in the European region restored as Oxea’s plant in Oberhausen (Germany) ended its turnaround after the fire broke out at one of its 2-EHA manufacturing facility. Many recovering downstream industries along with the strong demand from the construction activities surged the offtakes of 2-Ethylhexanoic Acid, further supporting the demand outlook in the regional market. The prices increased from USD 3348 to USD 3865 per MT FOB Hamburg, Germany in the third quarter from July to September. Perstorp Oxo AB surged the prices for its carboxylic acid derivatives owing to the increased raw material pricing and rising demand for the product in the market. Propylene prices stayed firm in the recent weeks. Rise in prices can also contribute to strengthening crude and record prices for natural gas around the globe.
