For the Quarter Ending June 2023
North America
Defoamer surfactant prices in the US market showed mixed trends in the second quarter of the year on the back of changing market dynamics. The construction industry started the quarter on a sluggish note; however, the industry picked up pace and can be observed from the improvement in the housing market, where inventories declined towards the second half of the quarter. The paints & coatings industry forms the second most-demand segment for defoamer surfactants after the oil & gas industry. Thus, improved offtakes towards the second half of the quarter culminated in a rise in Defoamer surfactant prices. After the conclusion of Q2 2023, Defoamer surfactant prices in the US were assessed at USD 2610 per MT on a FOB basis.
APAC
In the second quarter of 2023, the Chinese market witnessed a notable uptick in the prices of Defoamer Surfactant. This surge was primarily driven by increased demand from downstream industries such as paper and pulp, coating, and water treatment. However, a positive trend was observed in the production costs of Defoamer Surfactant, as the expenses saw a continuous decline. This decline was attributed to the 5.1% drop-in cost support from the upstream Crude Palm oil. On the broader economic front, China's consumer price index showed a continued decline at an annual rate of 0.2 during the same period. This indicated a stable pricing environment for consumers, but factory-gate prices experienced even more significant reductions. This pricing trend posed challenges for manufacturers who were grappling with pricing pressures in the market. The NBS manufacturing purchasing manager's index (PMI) showed a marginal improvement, rising to 49 in June from 48.9 in May, matching market forecasts. However, the index still signified that factory activity had contracted for three consecutive months and remained at the lower end of the 50-point range. This indicated that the manufacturing sector was facing challenges in its recovery, although there was a slight improvement in new orders during the month. In June 2023, Defoamer Surfactant prices in China were assessed at USD 2410 per MT on a FOB basis.
Europe
In Q2 2023, the defoamer surfactant market in Europe was dominated by the oil and gas industry. The increasing demand for defoamers in the oil and gas industry is due to the need to prevent foam formation in oil and gas wells and pipelines. Foam formation can lead to a number of problems, such as reduced oil and gas production, damage to equipment, and safety hazards. Dow Chemicals, in its quarterly report ending June 2023, revealed and highlighted the underwhelming performance of the construction industry. Olefins, aromatics, and others witnessed diminishing margins, weak demand, and limited procurements in the regions amid persistent competition from Asian imports and declining energy prices as Europe has been ahead in its LNG procurements for the upcoming winter, unlike the last year's trend. Defoamer surfactant prices in Europe were assessed at USD 2555 per MT on FD basis after the conclusion of Q2 2023.
For the Quarter Ending March 2023
North America
In the North American region, the Defoamer Surfactant market showcased a mixed pricing trend in the first quarter of 2023. The cost support from the feedstock Palm oil fluctuated throughout this period in the US domestic market. In January, product prices plummeted in the region amidst a lack of market competitiveness and slow procurement rates. Amid the Chinese Lunar New Year Festival, the participation of Asian market players was low. In February, the prices inclined slightly amidst an increase in demand from the downstream paper, pulp, and water treatment industries and increased production rates in the region. In the last month of Q1, the market sentiments stabilized, and the prices declined slightly amidst built-up inventories of the product and moderate downstream demand in the domestic and overseas markets.
APAC
The Defoamer Surfactant market exhibited a bearish pricing trend in the first quarter of 2023, and throughout this period, the overall cost support from the feedstock Palm oil has remained on the lower edge in the Chinese domestic region. In the first month, the prices declined slightly amid higher inventory levels and a sluggish demand outlook from the downstream water treatment and paper manufacturing industries in the region. In the second and third months of Q1, the market observed a sharp drop in spot prices due to stagnant demand for the product and ample stocks of the product. As per the market participants, the production rates dropped in the domestic manufacturing firms. Thus, the market prices of Silicon-Based Defoamer Surfactant FOB Shanghai settled at USD 2439 per tonne at the end of Q1 2023.
Europe
In the European region, the Defoamer Surfactant market showcased a bearish pricing trend in the first quarter of 2023 amidst weaker cost support from the upstream Palm oil. In the first month, the prices were stable amid moderate demand and adequate supply of the product in the region. In the second month, the prices tumbled due to a weaker demand outlook from the downstream paper, pulp, and water treatment industries in the region. The downstream consumers were reluctant for new purchases amid uncertainty regarding economic conditions and inflationary pressure. In the last month of Q1, the prices slipped down further in the region as manufacturing PMI fell amid weaker demand and a drop in input costs in the European region. Thus, the market sentiments for Defoamer Surfactant were observed to be in negative territory in the Q1 of 2023.
In the fourth quarter of 2022, the Defoamer Surfactant market in the North American region was ambiguous. As the first half observed substantial operating loads at crucial trading facilities, in contrast, the second half of the quarter was suppressed to a certain extent. The extreme weather disruptions have halted operations and impacted both supply and demand in the domestic market. Although, the demand for Defoamer Surfactant already staggered on lower levels, and it was further hampered by the force majeure in facilities amidst the supply chain and power disruptions. On the supply side, it has also faced several issues regarding transportation facilities. As a ripple effect, the discussions for Defoamer Surfactant have remained on the lower side and consistently subdued throughout the period, with CFR Vancouver discussions assessed at USD 4092 per tonne in December.
Overall, the Defoamer Surfactant market in the Asia Pacific region has observed mixed sentiments in the fourth quarter of 2022, differing based on subregions. However, the bearish sentiment is a prominent dominating factor throughout the period. This development has been instigated by the weakened cost support from feedstock that has further coupled with hampered demand in the regional market. The future of palm oil has manipulated the mindset of producers tremendously, and the discussions for Defoamer Surfactant at the spot market consistently fluctuated. At the same time, the low operating loads amidst the COVID surge and restricting the cash outflow have levied a considerable impact on the demand for Defoamer Surfactant in the Asia Pacific region. As a ripple effect, the CFR Busan discussions were assessed at USD 3856 in December 2022.
In the fourth quarter of 2022, the Defoamer Surfactant market in Europe has substantially pressurized despite observing a substantial surge in offers. Since the market activities resumed in the previous quarter, the downstream players are consistently inquired about Defoamer Surfactant. Although, the decision of the market players and major operating facilities in the values chain decided to reduce the operations to curb high gas prices. As a ripple effect, it levied a considerable impact on the supply-demand for Defoamer Surfactant, and the FD Antwerp discussions for Defoamer Surfactant were assessed at USD 3678 per tonne in December.
