For the Quarter Ending March 2023
North America
Sluggish procurement from the downstream surfactant and detergent industry has led to a bearish market trend for Detergent Alcohol in the US market. The input cost pressures have started to ease, and the product was available in the domestic region. The market transactions were also average, and the Detergent Alcohol prices have continued to remain in negative territory. The market decline of the detergent sector this month has been exacerbated by the adverse economic conditions brought on by the collapse of two banks, Silicon Valley and Signature Bank. As a result, manufacturers have slashed their offers. In addition, as per the market sources, the data indicates that the transportation cost for shipments from the USA to Asian markets such as South Korea and India has been lowered by significant figures. Thus, Detergent Alcohol C12-15 DEL Louisiana prices were concluded at USD 1756 per ton at the end of the first quarter.
APAC
Throughout the first quarter, the prices of Detergent Alcohol sustained their downward trajectory. Despite the improvement in the manufacturing sector across the Chinese market, the prices of Detergent Alcohol have resisted upward development. The market players have reported that the accumulation of inventories and moderate demand from the downstream surfactant and detergent sector was responsible for this successive price reduction. Overall, the cost support from upstream Palm Oil was also insufficient amid its ample availability in the exporting nations. Furthermore, the improved container availability and declining freight rates have decreased transit times and contributed to maintaining the steady flow of finished goods. Consequently, Detergent Alcohol C12-14 - CFR SHANGHAI prices were settled at USD 1450 per ton in March.
Europe
In the German market, the pricing dynamics of Detergent Alcohol have demonstrated a volatile trend. In early Q1, a gradual increase in product supplies was observed in the domestic region. The manufacturer's quotations have decreased along with the slowed market conditions. The collective sentiments for the downstream detergent sector to procure Detergent Alcohol have remained weak. The input cost pressures were easing in European countries and softening the downturn that occurred in economic activities. Furthermore, toward the end of the first quarter, the upstream Palm Oil cost support escalated, and the market operated at high levels. As a result, the manufacturers have increased their quotations for the end-use industries. Therefore, considering the aforementioned reasons, Detergent Alcohol C12-14 FOB Hamburg prices averaged at USD 1908 per ton in Q1-end.
For the Quarter Ending December 2022
North America
In the US market, the prices of Detergent Alcohol have demonstrated mixed market sentiments. The prices first fell and then improved in the latter half of Q4. The fall in demand from the downstream detergent industries has hampered the positive development in the pricing dynamics of Detergent Alcohol in early Q4. Furthermore, the production rate of manufacturing units stabilized, as there were no major fluctuations in the domestic region. The supply-chain pressure has also been eased. However, towards the end of the fourth quarter, the adverse weather conditions and increasing upstream cost pressure impacted the market value of Detergent Alcohol. The procurement from the downstream surfactant and detergent industries has also stabilized, and the market operated at high levels. Detergent Alcohol C12-15 DEL Louisiana prices were assessed at USD 2905 per ton in the fourth quarter
APAC
In the fourth quarter of 2022, Detergent Alcohol prices have remained on the lower end in the domestic region of China. The COVID-19 outbreak in China's domestic market has led to severe lockdowns in major cities, which has restricted the consumption and production of downstream surfactant and detergent industries. Market participants have reported that upstream stockpiles of palm oil have put the price realizations of detergent alcohol in negative territory. In addition to a decline in exports, the domestic market's purchasing power has also declined. Furthermore, in December, the off-season effect was prominent, and the terminal demand from the surfactant and detergent sector was slower than expected. The spot purchases were mainly based on need-on-demand. Thus, Detergent Alcohol C12-14 - CFR Shanghai prices were concluded at USD 3507 per ton in December.
Europe
In Q4, the Detergent Alcohol prices were observed to be on a downward trend. The prices have been consistently dropping since the start of the fourth quarter of 2022. The cost support provided by upstream palm oil was insufficient and did not cause the manufacturing costs to rise. Additionally, pressures on the supply chain have been reduced, and there have been active movements of goods. In addition, the market players have reported that the downstream inquiries from the surfactant and detergent sector were relatively low. However, escalating energy prices and the deteriorating economic outlook prompted the downstream market players to either postpone or cancel orders, dampening the demand fundamentals of Detergent Alcohol. The ChemAnalyst database has shown that Detergent Alcohol C12-14 FOB Hamburg prices were settled at USD 3425 per ton in Q4-end.
With the start of the third quarter, the price trend of Detergent Alcohol has demonstrated a downward trajectory. The market players have reported that new and export orders weakened by entering the mid-third quarter of 2022. However, price pressures faded as inventory accumulation climbed and supply chain pressure was relieved. The US consumer sentiment has improved as inflation rates weakened comparatively towards September 2022. In addition, the market sources have informed us that the accelerated oversupply of Detergent Alcohol has been enough to fulfill the inquiries from the downstream surfactant and detergent industries. Therefore, considering the factors, the Detergent Alcohol prices were assembled at USD 2930/MT DEL Louisiana in August.
The price trend of Detergent Alcohol has demonstrated mixed sentiments throughout the third quarter of 2022. The plummeting energy costs and the re-occurrence of new COVID cases have deteriorated the market sentiments toward Detergent Alcohol in China. The market players have reported that the oversupply of goods has hampered the supply-demand equilibrium. As a result, the manufacturers have had to reduce their quotations to avoid stockpiling the product. In addition, the Purchasing Manager Index (PMI) also fell to 49.0 in July. However, the prices slightly improved entering September 2022 owing to active inquiries from downstream. However, towards the Q3 end, the demand from downstream detergent and surfactant industries remained relatively low. Demand and logistics issues persisted as China continued to adopt a dynamic zero-clearance prevention policy. Consequently, Detergent Alcohol C12-14 - CFR SHANGHAI prices were settled at USD 3760 per ton on September 30.
the Detergent Alcohol prices fluctuated in a narrow range throughout the third quarter of 2022. The build-up of inventories and the contracted new orders have prompted the manufacturers to reduce their quotations to maintain the equilibrium between supply and demand. In the mid-third quarter, in Germany, the logistics problems worsened as port congestions and labor strikes halted the smooth functioning of supply chains. The severe weather crisis and energy supply crunch has deteriorated the market sentiments for Detergent Alcohol in the domestic region. The market players have reported that the low water levels in rivers and the overladen ports with cargoes have created an imbalance in the trade outlook. Furthermore, cross-regional freight costs have decreased, prompting negative pressure on the price realizations of Detergent Alcohol among the market players. Consequently, Detergent Alcohol C16-18 FOB Hamburg prices were settled at USD 2890 per ton on September 30.
