For the quarter Ending December 2021
Rising on high raw material cost and inflationary pressure, AES prices remained high throughout the quarter across US market during this period. Demand fundamentals for the product form the downstream surfactant segment remained stable despite pandemic related uncertainties strike global market. In addition, raw material price remained a matter of concern for most of the regional players, as imported cargoes were either getting cancelled or delayed due to container unavailability at Asia-US trade route. However, price remained buoyant and heard hovering around USD 1520/MT during December in USA.
Asian market kept on oscillating on the back of raw material scarcity amid logistics related issues. The price of AES effectively rose in Indian market during this timeframe, due to limited raw material availability and firm demand from the local market. Due to scarcity of raw material palm kernel oil, AES prices kept on rising during October and November, as demand for palm oil were high from other segments. Major surfactant and detergent manufacturers were compelled to raise their product costs, while logistical issues have exacerbated the overall dynamics. AES price hovered around USD 2071/MT during October in India. Meanwhile Chinese market faced other issues like rise in coal prices during monsoon season, and later implementation of dual energy policy in the country. Thus, AES also remained buoyant in Chinese market during this timeframe.
Surfactant sector maintained overall firmness stability during this timeframe too, as the domestic market was healing from prolonged pandemic related uncertainties. Furthermore, enormous surge in natural gas price increased the overall production cost for several commodities in the regional market. Meanwhile, low imports of raw material from Asia remained a matter of consideration, as it was leading to consistent hike in its prices. Furthermore, high freight cost and congestion across Asian market exacerbated the overall pricing dynamics of AES in the European market.
For the Quarter Ending September 2021
During the third quarter of 2021, the prices of Alkyl Ether Sulfates escalated at an exponential pace in the North American region. The skyrocketing freight cost followed by the delay in the shipping of chemical commodities from Asia led to the increment in the pricing of AES in Q3 2021. A substantial hike in the demand for surfactants was seen during the quarter by the downstream cosmetics and personal care, and detergents industry across the region.
The demand for Alkyl Ether Sulfates surged from the downstream industries including cosmetic and personal care, textile, and detergents during the third quarter of 2021 in Asia. Constant pressure from the feedstock scarcity amid stable to firm demand from the domestic market, prompted the prices of AES to rise effectively in Q3 2021. Major surfactant and detergent manufacturers revealed that they had to increase their product prices due to the shortage of raw materials amid high demand, while logistical issues also amplified the overall situation. It was observed that the skyrocketing freight cost affected the prices of several imported commodities in the country. In India, the EXW witnessed a major increment from USD 1512/MT to USD 1668/MT within the quarter.
The European market experienced a marginal increase in the prices of Alkyl Ether Sulfates during Q3 2021. Increased shipping charges and a halt in the supply of upstream feedstock from the Asian countries resulted in the steep rise in the prices of AES in Q3. A hike in the demand was observed from the downstream cosmetic and personal care industry across the region. Additionally, the surfactant and detergent market grew significantly during this quarter as well.