For the Quarter Ending March 2022
The Detergent Alcohol prices in the United States have stayed on an upward trajectory in the first quarter of 2022 due to the increased demand in the domestic market, with an upswing driven by the increased utilization of cleaning products on the uncertainty in Covid cases. The resultant domestic logistic breakdown in the region has influenced the increasing market trend. Export restriction on feedstock Palm Oil from Indonesia's prime exporting country has become the major price influencing factor. The low import volumes of feedstock palm oil from the international market have escalated prices in the United States. Hence, in March, the prices settled at USD 2716/MT and USD 2638/MT for Detergent Alcohol C16-C18 and C12-C15 DEL Louisiana, respectively.
The overall market of Detergent alcohol in Asia experienced an uphill pricing trend during Q1 2022. Extreme shortages in raw material supplies from Indonesia and Malaysia amid logistics challenges have severely affected the domestic market in the region. Feedstock Palm oil has played a prominent role in shifting the fundamentals of these Detergent Alcohols. However, extensive consumption and robust demand from the downstream soaps and detergent sector are the main factors. Further, increasing uncertainty over the COVID cases amongst consumers has fueled the increased urge for the product in Asia. Thus, the price discussions in March were assessed at USD 3080/MT for Detergent Alcohol C12-C14 CFR JNPT in India.
In Europe, Detergent Alcohol prices exhibited a significant rise in Q1 2022 with a jump approximately about 10% when compared to the last year. This spike owed to the sky-rocketing feedstock Palm Oil prices across the international market and the supply chain disruption caused by the Russia-Ukrainian conflict. Hence, transportation constraints in Europe led to reduced imports from Southeast Asia which resulted in scarcity of the product. The price hike was also supported by robust demand from the downstream surfactant industry with improved consumption of various personal care segments about hygiene maintenance. The prices reached USD 3425/MT and USD 2640/MT for Detergent Alcohol C12-C14 and C16-C18 FOB Hamburg, respectively.
For the Quarter Ending December 2021
Rising palm oil feedstock costs in the international market against the backdrop of its global supply shortage caused the Detergent Alcohol market to project buoyed sentiments in Q4-2021. The continued disturbances in supply chains and skyrocketing freight charges led to a scarcity in Detergent Alcohol supplies in the USA market. The supply levels deteriorated further as Shell ran into October under force majeure because of raw material constraints following the Hurricane Ida in late August. Meanwhile, a sharp uptick in demand from the end-user customers amid Omicron scare encouraged the downstream surfactant industry to consume hefty volumes of Detergent Alcohols throughout the quarter. December brought leniency in the market with improvement in shipping and decreasing turnaround time. The prices of C12-C15 Detergent Alcohols during December registered a decrease of 3.4% from the year’s highest trend assessed during November and settled at USD 2552/MT DEL Louisiana.
The global shortfall in palm oil raw materials and delivery delays from logistic disruptions gripped the Asian Detergent Alcohol market under tight spot in Q4-2021. The low plantations and labour shortages that reduced the palm oil output to critically low levels in the major palm oil-producing countries Indonesia and Malaysia in 2021, continued to spiral the spot prices throughout the quarter. China’s extreme zero-covid policies further aggravated the existing shipping constraints causing the downstream detergent sectors to struggle getting their hands on Detergent Alcohol supplies. On the demand front, the detergent sector projected robustness, especially over the rising concern on new Omicron coronavirus that rushed consumers into buying more cleaning agents. A slight relaxation in trade movement obstacles and retreating freight costs from record numbers during December loosened the Detergent Alcohol supply tightness across Asia bringing a short-lived stability to the prices. The C12-C14 Detergent Alcohols CFR Shanghai discussions settled at USD 4050/MT in China and the Ex-Mumbai offers in India were traded around USD 3021/MT during December.
Detergent Alcohol market in Europe witnessed soaring prices with the ripple effect from bullish international palm oil feedstock market sentiments, feedstock unavailability due to shipping container crisis, and unsettling energy scarcity in the region. The increasing demand for spot volumes exerted a further pressure on the manufacturers who made frequent positive revisions in the offered contracts to compensate for the surging input costs, while the buyers were heard transferring the high costs to the consumers. Despite a relative relief in the freight movements during December, strong demand from the end-user detergent sector outpaced supply and led the contracts for Detergent Alcohols to settle at firm levels. The last assessed prices for Detergent Alcohols during December stood at USD 3241/MT on FOB basis in Germany.
The prices of Detergent alcohol witnessed a significant rise in the North American region during Q3 2021. Spot market demonstrated a spike in prices for all fatty alcohols in the region due to disrupted supply chain caused by shipping and freight issues that have been a key cause of concern globally. Spot prices were assessed in greater ranges than the contract negotiations during the quarter. A decline in the demand was observed in Q3 in comparison to the previous months when downstream sectors were consuming hefty volumes. The price of detergent alcohol was assessed at USD 2495 per MT DEL Louisiana during September.
The overall market of Detergent alcohol experienced an upward trajectory in the Asia Pacific region during Q3 2021. Critical scarcity of raw materials amid logistics challenges led to a steep rise in the prices of detergents in India. One of the leading manufacturers of detergents revealed that they had a great demand for the product from the domestic market while facing some tepidness from some downstream sectors throughout August. Rising freight costs due to the shortage of shipping containers were a major concern for the manufacturers. Fatty alcohol supplies from Southeast Asia to China were curtailed due to limited operational load amidst restricted availability of palm oil. In addition, some Malaysian fatty alcohol producers were heard curtailing production thereby capping available of fatty alcohol supplies for Asian buyers. Hence, the pricing trend followed an upward trajectory and CFR Shanghai deliveries were assessed at USD 2305 per tonne, during the week ending 24th September.
In the European region, ease in PKO prices between early to mid- Q3 had a limited impact on the overall pricing of fatty alcohols as the logistics issues remained unresolved. Covid restrictions in Southeast Asia reduced imports to European nations which resulted in tightened supply fundamentals in Q3 2021. Demand for fatty alcohols from major end-use segments including detergents and cosmetics remained robust which kept the consumption numbers high. The price of fatty alcohols C12-C14 in Europe hovered around USD 1650-1750 per MT FOB Hamburg.