For the Quarter Ending March 2023
In the US, on the back of rising cost support and firm demand sentiment, 2-Ethyl hexanoic Acid prices have risen consistently throughout the first quarter of 2023. 2-Ethyl hexanol, the feedstock of 2-Ethy hexanoic Acid, prices constantly throughout the quarter which kept the cost pressure on the prices. Meanwhile, demand from the plasticizers industry sharply increased, which culminated in ample new orders and inquiries for the product. Despite the economic headwinds in the US, petrochemical remained largely unscathed in the first quarter. Thus, after the conclusion of the first quarter of 2023, 2-Ethyl Hexanoic Acid prices were assessed at USD 2855 per MT.
In the Chinese market, 2-Ethyl Hexanoic Acid prices declined consistently in the first quarter of 2023 on the back of weak cost pressure from the feedstock market and stagnant to sluggish demand sentiment. Feedstock 2-Ethyl Hexanol prices dropped for a major part of the quarter which resulted in soft cost support, and consequently, prices remained weak. Meanwhile, demand from the downstream paints & coatings segment remained largely stable as the construction industry faced an off-season lull while consumption from plasticizers increased during the quarter. Thus, after the conclusion of March 2023, 2-Ethyl Hexanoic prices in China were assessed at USD 2400 per MT on a FOB basis.
In the European region, 2-Ethyl Hexanoic Acid prices constantly rose throughout Q1 on the back of firm cost support from 2-Ethyl Hexanol and stable demand from downstream industries. The plasticizers industry witnessed improvements after sluggish Q4 2022, which culminated in increased consumption rates of 2-Ethyl Hexanoic Acid. However, demand from the paints and coatings industry remained sluggish due to the off-season for the construction industry amid economic headwinds in the European continent. Meanwhile, Europe reported a stable flow of imports from the Asian market as the freight market remained bearish. Thus, after the conclusion of the first quarter, 2-Ethyl hexanoic Acid prices were assessed at USD 2770 per MT.
For the Quarter Ending December 2022
The North American markets for 2-Ethylhexanoic Acid continued to decline during this quarter. In the United States, suppliers had reduced their imports, and sellers were offering discounts to increase sales. The factors that contributed to the price variations of this product were the variations in propylene prices, the base material that was used in the production of this product, and the degree of interest that downstream companies showed in this product, which was moderate throughout this quarter. As a result, domestic manufacturers were also maintaining modest production rates.
This quarter, market sentiments for 2-Ethylhexanoic Acid varied in the Asia-Pacific region. The cost of this commodity in China fell until the second week of November due to moderate demand; however, from that point on, the cost started rising despite the continued moderate demand. This was because there was limited availability of this product in warehouses and inventories due to the re-implementation of Covid- 19 curbs, which hampered upstream production. This product's price dropped this quarter in Japan. The upstream naphtha and crude oil prices, as well as the average level of interest shown by the lubricants, automobile, and paint industries in this product for the production of their final product, were the driving forces in the Japanese market. The market for 2-Ethylhexanoic Acid in India was comparable to the Japanese market.
The Asian and European markets for 2-Ethylhexanoic Acid were identical during this quarter. During this quarter, the market in Germany was experiencing a decline. The cost of this commodity was significantly impacted by the subpar performance of the propylene market, as well as by the average amount of interest that downstream organizations were displaying in the product since they were concerned about the enhanced energy costs due to the ongoing conflict between Russia and Ukraine. As a result, suppliers were lowering their quotes to boost sales while upstream companies were maintaining average production rates. In this quarter, the market for Belgium's 2-ethyl hexanoic Acid was similar to Germany's.
For the Quarter Ending September 2022
The North American 2-Ethylhexanoic Acid market began this quarter with a downfall, yet it bounced back in the month of August, and again witnessed a downfall, which lasted till the end of this quarter. The variations that took place in the cost of this product was hugely influenced by the changes that took place in propylene prices, base material used in the production of this product and the magnitude of interest that downstream companies showed towards this product, which changed from time to time. Apart from these, modifications in the exchange rates of the U.S. dollar with Euro too had an impact on the cost of 2-EHA. As on 30th September, the cost of 2-Ethylhexanoic Acid in the U.S. was about USD 3,860 per MT on CFR – New York basis.
2-Ethylhexanoic Acid was witnessing varied market sentiments in the Asia–Pacific region during the third quarter of 2022. In Japan, the price of this product was growing till the fourth week of August; however, it started to decline from then till the end of this quarter. The factors which drove the Japanese market were the changes that took place in the upstream naphtha and crude oil prices and the degree of interest that lubricants, automobile, and paint industries were showing for this product for their end product’s production. In the final week of September 2022, the price of 2-Ethylhexanoic Acid stood at USD 3,430 per MT on EXW – Yokkaichi basis. Similarly, in China, this product’s price expanded in the month of July and then declined till the end of this quarter. The decline in cost was primarily because of the average demand for this product from downstream companies, as they had to absolutely halt or lower their production rates because of inadequate power supply. The Indian 2-Ethylhexanoic acid market was identical to that of China’s 2-EHA market.
In this quarter, the European markets of 2-EHA were identical to that of the North American 2-Ethylhexanoic acid markets. The market started this quarter with a defeat, yet it returned in the long stretch of August and again saw a fall, which endured till the finish of this quarter. The variations that occurred in the cost of this item were gigantically affected by the progressions that occurred in propylene costs, base material utilized in the development of this item, and the size of interest that downstream organizations displayed towards this item, which changed occasionally. The drop in the exports of this product also brought down the costs of this product, and in the final week of this quarter, this product was getting bartered in Germany at USD 3,760 per MT on FOB – Hamburg basis.
For the Quarter Ending June 2022
In the North American region, the price of 2-Ethylhexanoic Acid fluctuated throughout the quarter and upsurged by 11% from Q1 of 2022. At the beginning of Q2, prices rose due to a surge in upstream Naphtha costs in the region. However, towards the end of the quarter, the values contracted slightly due to decreased quotations from exporting South American and European exporters after a fall in feedstock prices reduced the product's manufacturing costs. The demand for material remained consistent from the downstream phthalate and paint manufacturers throughout the quarter, and the price trend was stable at the end of Q2.
In Q2 of 2022, the price trend of 2-Ethylhexanoic Acid remained firm, and prices increased by 18% from the previous quarter in the Asian region. During H1, freight charges surged noticeably, causing a significant downward cost pressure on the values. However, upward cost pressure got reduced due to decreased feed Propylene prices, and the demand for product upsurged significantly in the PVC plasticizer manufacturers for the growing automotive sector in the region. The price started declining at the end of the quarter due to a reduction in upstream costs of the region and stable demand sentiments from the downstream industries.
During Q2, the price trend of 2-Ethylhexanoic Acid remained strong and rose quarterly by 15% in the European region. In the first half of the quarter, the prices were continuously upsurging due to increased upstream costs post-global inflation. However, from the mid-quarter, the price movement shifted, and values started declining due to decreased feed Propylene prices in the region, reducing production costs. Hence, the price of 2-EHA dropped until the end of the quarter. The demand for the product remained steady during the period. However, port congestion affected the supplies with unstable but consistent offtakes of material from the market.
For the Quarter Ending March 2022
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.
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.
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
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.
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.
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.