For the Quarter Ending June 2023
North America
The decline in demand from the downstream surfactant and detergent industries has caused a price cut in the manufacturer’s quotations for Fatty Alcohol in the US market in early Q2. The US market has been impacted due to the aftermath of the failure of two major banks, pressuring the trade activities across the domestic market. The uncertainty in further increments in interest rates has outweighed demand fundamentals from the downstream surfactant and detergent industries. In addition, the declining upstream Palm Oil and a slowdown in demand from the terminal market in late Q2 have prompted the manufacturers to reduce their offers to stimulate new shipments. The supply-chain constraints have been eased and the logistics were restored. The shipping costs from North Europe to North America East Coast have declined amidst a slowdown in the global trade of chemicals. Furthermore, On the input energy front, the stockpiles of WTI Crude Oil were also sufficient to meet the demand from the end-use industries. Furthermore, in June, as Federal Reserve Chairman Jerome Powell indicated that two additional rate hikes are planned for this year to control the sticky inflation, market sentiment was further undermined. Consequently, Fatty Alcohol C12-15 DEL Louisiana prices were settled at USD 1645 per ton in the Q2-end.
APAC
Throughout the second quarter of 2023, the prices of Fatty Alcohol have demonstrated mixed market sentiments in the domestic market of Malaysia. In early Q2, the prices of Fatty Alcohol have escalated. The active procurement from the downstream surfactant and detergent industries and a hike in upstream Palm Oil prices have contributed to the market growth of Fatty Alcohol. In addition, Malaysia also maintained its export tax for crude palm oil at 8% for May, pressuring the production costs for Fatty alcohol for the importing countries. Furthermore, towards the second half of Q2, the prices of Fatty Alcohol have started to plummet. The limited inquiries from the downstream surfactant and detergent industries have led to a fall in the market value. On the supply side, the stockpiling of the product in the domestic region has also contributed to the successive reduction in the price realizations of Fatty Alcohol. After the Labour Day holidays, the market sentiments in the major importing country, China have not strengthened, reported by market participants. On the upstream front, the declining costs of Palm Oil have also been reported, owing to high supplies in the domestic region. Production of upstream Palm in May swelled 26.8% from April to 1.52 million metric tonnes, as a result, manufacturers have opted for price adjustments for its downstream derivatives, including Fatty Alcohol. In addition, the weaker ringgit, as it dropped nearly 6% against the U.S. dollar this year, has also pressured trade activities across the domestic market.
Europe
The prices of Fatty Alcohol escalated in early Q2, on the backdrop of relatively higher manufacturing costs brought on by the limited supplies of TTF Natural gas costs. The tight upstream Palm Oil supplies have led to an increment in the manufacturing costs of Fatty Alcohol. The inflationary pressures have also started to ease in the European market which has improved the trade activities of several specialty chemicals, including Fatty Alcohol. The manufacturers have revised their offers to maintain their profit margins. The domestic region's spot Fatty Alcohol supply was consistent, and the majority of market transactions were driven by small orders. The inquiries from importing European nations have risen albeit at a slower pace due to persistent inflationary pressures. Furthermore, according to market participants, supply and demand have maintained balance, and there haven't been any major logistics bottlenecks. However, towards late Q2, The over-availability of upstream Palm Oil has led to price cuts for the downstream Fatty Alcohol market. Thus, with a decline in manufacturing costs of Fatty Alcohol, the prices have settled lower. On the demand side, the procurement from the downstream Surfactant and Detergent industries has been observed to be inadequate amidst adequate availability, weakening the market sentiments in June.
MEA
The prices of Fatty Alcohol have demonstrated volatile market growth in the domestic market of Saudi Arabia throughout the second quarter f 2023. In early Q3, the prices of Fatty Alcohol escalated, amid the active demand from the downstream surfactant and detergent industries. The Fatty Alcohol stocks were adequate in the domestic region, meeting the terminal demand. The movement of finished goods was unimpeded as no supply-chain constraints were observed in the given timeframe. In addition, manufacturing activities have also expanded owing to a boost in trade activities across the nation. Furthermore, on the input energy front, Saudi Arabia imported a record 910,000 metric tons (193,000 barrels each day) of fuel oil from Russia in June. It is a near 10-fold annual surge to meet summer power generation demand and preserve crude exports despite OPEC+ production cuts. However, in the second half of Q2, the prices of Fatty Alcohol started to decline as the inventories were at the higher end. The market players have reported that the purchases were mainly based on demand, and support from upstream raw materials was also insufficient foreseeing the declining values of Palm Oil. The market players have reported that due to sluggish downstream demand and high supplies, a successive reduction has been employed for the maintenance of market balance. Consequently, Fatty Alcohol C12-14 - CFR Gizan prices were settled at USD 1588 per ton in Q2-end.
For the Quarter Ending March 2023
North America
Fatty Alcohol prices have remained on the lower end in the US market. The downstream purchases from the surfactant and detergent industries were limited and didn't contribute to strengthening the market dynamics of Fatty Alcohol. The stockpiling of the product has further increased the supply-side pressure. The cost support from upstream Palm Oil was also limited, and the quotations have remained at the lower end. Furthermore, the weak economic conditions have weighed on the production activities of Fatty Alcohol and its downstream derivatives. In addition, the rising interest rates and the fears of a financial crisis amidst the failure of Silicon Valley Bank have pressured market sentiments. Therefore, prices of Fatty Alcohol C12-15 DEL Louisiana were concluded at USD 1756 at Q1-end.
APAC
In the Indonesian market, the prices of Fatty Alcohol have demonstrated a downward trajectory throughout the first quarter of 2023. The market players have reported that the stocks of upstream Palm Oil have increased in the domestic region amid the weak demand from the downstream surfactant and detergent industries. The operating rate remained regular, and an insufficient demand restrains the market growth of Fatty Alcohol. Furthermore, in mid-Q1, the Indonesian government curbed two-thirds of upstream Plam Oil exports; thus, the product was available in the domestic region. In addition, the strong US dollar has also impacted market sentiments. The container availability has been improved, and the freight rates have been decreased. Consequently, Fatty Alcohol C12-14 FOB Tanjung Priok prices were settled at USD 1437 per ton in Q1-end.
Europe
The drop in consumption from the downstream surfactant and detergent industries has weakened the market growth of Fatty Alcohol in the first two months of Q1 of 2023. The declining production costs, weak market sentiments, and tight monetary conditions all these factors have a combined impact on the downshift observed in the prices of Fatty Alcohol in the German market. However, the tight supplies of upstream Palm Oil in late Q1 have further pressured the production costs of Fatty Alcohol. Towards the end of the first quarter, the downstream demand from the surfactant and detergent industries also improved, albeit at a slower end. The inflationary pressures also eased, and the market fundamentals have been reinforced. Thus, Fatty Alcohol C12-14 FOB Hamburg prices were assessed at USD 1908 per ton in March.
For the Quarter Ending December 2022
North America
The prices of Fatty Alcohol have sustained their bearish run in the last quarter of 2022. The buildup of inventories in the domestic region amid limited offtakes from the downstream surfactant and detergent industries has caused a drop in manufacturer's quotations. The wide availability of upstream Palm Oil has also offset the positive developments in Fatty Alcohol costs. In addition, the inflow of new inquiries from the downstream surfactant and detergent sector was also insufficient to strengthen the market sentiments; thus, the price increment was limited. The ChemAnalyst database has shown that Fatty Alcohol C16-18 DEL Louisiana prices hovered around USD 2900 per ton at the end of the fourth quarter of 2022.
APAC
Fatty Alcohol prices have witnessed a downward trajectory in the fourth quarter of 2022 in China. The demand from the downstream surfactant and detergent industries remained stable to weak. On the upstream cost front, Palm Oil costs didn't offer much support to the price realizations of Fatty Alcohol in the domestic region. The demand for Chinese goods has remained on the lower end. According to the data released by the National Bureau of Statistics (NBS), the official Purchasing Managers' Index (PMI) fell to 48.0 in November from 49.2 in October. Furthermore, the price decline has also been attributed to the weak offers from the exporting countries. Consequently, Fatty Alcohol C12-14 - CFR SHANGHAI prices were settled at USD 3205 per ton in December.
Europe
During the Q4 of 2022, the pricing dynamics of Fatty Alcohol progressed into negative territory in the German market. High inflation in one of Europe's major economic growth drivers has put a strain on purchasing power, resulting in decreased procurement from end-use industries. On the supply side, there has been an active movement of goods, and the port congestion has been eased out. However, the escalated inventory levels have hampered the fresh production activities in the region to maintain the market balance. Furthermore, the low consumption levels from the downstream surfactant and detergent sectors have dominated the market, and the prices have dropped. Prices of Fatty Alcohol C16-18 FOB Hamburg were assessed at USD 2585 per ton in Q4-end.
For the Quarter Ending September 2022
North America
Fatty Alcohol prices have remained buoyant throughout the third quarter of 2022. The hiked interest rate by US Federal Reserves and tight monetary policies has pressured the market sentiments of Fatty Alcohol in the domestic region. In the mid-Q3, logistics constraints, along with port congestion on US Gulf Coast and East Coast, and truck shortages, have further worsened the supply dynamics of Fatty Alcohol among the traders. In September, the supply-chain constraints were eased, subsiding the pressure on the price realizations of Fatty Alcohol. The operating rate of manufacturing units was regular, and the inventories were sufficient. The market players have reported that the purchases were mainly based on demand. Thus, Fatty Alcohol C16-18 DEL Louisiana prices were assessed at USD 3027 per ton at the end of the third quarter of 2022.
Asia-Pacific
Fatty Alcohol prices have demonstrated mixed sentiments in the Indian domestic market. The prices first fell and then escalated towards the end of Q3. The fluctuating values of input materials have pressured the market fundamentals of Fatty Alcohol throughout the third quarter. The oversupply of upstream Palm Oil inventories in major manufacturing countries, Indonesia, has resulted in cheaper import offers. The Indian manufacturers have procured the upstream Palm oil at significantly reduced prices. Furthermore, in September, the demand from downstream Surfactant and Detergent industries strengthened, and as a result, the price realizations of Fatty Alcohol have improved in the domestic region. Fatty Alcohol C 16 - C 18 CFR JNPT prices averaged USD 2441/MT in September.
Europe
In the third quarter of 2022, Fatty Alcohol prices fluctuated in a narrow range. The supply turmoil brought on by the Russia-Ukraine war has impacted the price dynamics of Fatty Alcohol in the domestic market of Germany. The sanctions imposed by European nations on Russia have restrained natural gas availability in the region. The manufacturing costs have increased due to the rise in raw material prices. Furthermore, the low water levels in the Rhine River have hampered the supply fundamentals. Many manufacturers have slashed their production rate, foreseeing the price volatility of input materials. However, the market players have reported that the downstream detergent and surfactant industries have operated at regular rates amidst the active inquiries from the terminal consumer. Therefore, Fatty Alcohol C16-18 FOB Hamburg prices were settled at USD 2942 in Q3-end.
For the Quarter Ending June 2022
North America
Fatty Alcohol prices in the North American market have followed the stagnancy during the second quarter of 2022. The critical factor governing the price dynamics was that the demand for personal care products remained continuous, proportionally impacting the market prices of Fatty Alcohol. Feedstock and palm oil prices remained brisk throughout the quarter leading to the buoyant production cost of Fatty Alcohol in the regional market. Palm oil supplying countries such as Indonesia and Malaysia restricted the export of feed Palm Oil in the international market; as a ripple effect, the supply shortage occurred among US Fatty Alcohol manufacturers. Furthermore, frenzy feed supply to the manufacturers governed the market sentiments of Fatty Alcohol in the North American market.
Asia Pacific
Mixed sentiments in the prices of Fatty Alcohol occurred throughout the second quarter of 2022 in the Asian market. Prices of Fatty Alcohol declined during the start of the quarter as the Chinese market remained quiet on account of strict lockdown in the country. In the mid-quarter, the prices stabilized as the significant manufacturers faced a supply gap between the exports and importers of the feed. Furthermore, shortages of feed palm oil from major raw materials producing countries, Indonesia and Malaysia, occurred in the regional market after the amendment of sanctions imposed by the Indonesian and Malaysian government officials. Detergents, cosmetics, and personal care sectors remained buoyant throughout the quartet, significantly influencing the market sentiments toward Fatty Alcohol in the Asian market.
Europe
Fatty Alcohol prices in Europe surged in the second quarter of 2022 on the back of inflated commodities in the regional market. Palm oil prices soared in the regional market because of the frenzy of feed supply from Indonesia and Malaysia. This surge in the prices of Palm oil proportionally raised the production cost of Fatty Alcohol in the European market. A gap between supply and demand occurred in the market, resulting in a hike in the prices of market prices of Fatty Alcohol. Energy costs also remained on the country's upper edge as the temperature rose in Europe. Moreover, the demand from personal care and surfactant sectors remained active, leading to spiked demand for Fatty Alcohol in the regional market.
For the Quarter Ending March 2022
North America
Fatty Alcohol prices in the US have stayed buoyant during the first quarter with an upturn majorly pushed by the improved use of personal care products on the uncertainty in Omicron variant. The resultant domestic logistic breakdown in the region due to new infections, has supported the increasing market trend. Additionally, export restriction on feedstock Palm Oil in the prime exporting country, Indonesia has become a significant price influencing factor in the international market. So, the low import volumes of feedstock Palm oil from the international market and the increased demand in the domestic market have escalated prices in the United States. Hence, in March, the prices settled at USD 2716/MT and USD 2638/MT for Fatty Alcohol C16-C18 and C12-C15 DEL Louisiana, respectively.
Asia Pacific
The overall market of Fatty alcohol in Asia experienced an uphill pricing trend throughout Q1 2022. Extreme shortages in raw material supplies from Indonesia and Malaysia amid logistics challenges have critically affected the domestic market in the region. Feedstock Palm oil has played a prominent role in shifting the fundamentals of these Fatty Alcohols. However, the driving factors are extensive consumption and robust demand from the downstream soaps and detergent sector. Further, raising uncertainty over the Covid cases among consumers has fueled the increased urge for the product in Asia. Thus, the Fatty Alcohol price discussions in March were assessed as USD 2478/MT for C18, USD 2627/MT for C18-C22, USD 2586/MT for C16-C18 in India.
Europe
Fatty Alcohol prices in Europe exhibited a significant rise during Q1 2022 with an increment of roughly about 10 percent. This peak was because of the skyrocketing 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 a reduction in import volumes from Southeast Asia, which resulted into lack of adequate availability for the product in the regional market. The price hike was also supported by robust demand from the downstream detergent sector with enhanced usage of various personal care products for hygiene maintenance. The prices assessed were USD 3425/MT and USD 2640/MT for Detergent Alcohol C12-C14 and C16-C18 FOB Hamburg, respectively.
For the Quarter Ending December 2021
North America
The Fatty Alcohol prices in North America surged upwards under the influence of the domino effect of palm oil feedstock tightness in the international market. The spot Fatty Alcohol prices traded higher than contracts during Q4-2021 owing to soaring demand fundamentals. The supply-side constraints got enhanced with the continuing dearth of vessels which caused unnecessary delays in shipments in turn creating supply deficiency. Local downstream buyers had difficulty getting their hands on deliveries with low truck availability. The subsequent improvement in the transport routes during December led to a downward correction in the prices which were assessed around USD 2480/MT – USD 2540/MT DEL Louisiana for C12-C15 and C16-C18 Fatty Alcohols. During the closing of the quarter, the demand outside the detergent sector stood depressed owing to winter dullness, however, the detergent segment projected a healthy growth all along.
Asia
The Asian Fatty Alcohol market experienced an unabated rise throughout Q4-2021 on the grounds of critically low palm oil feedstocks and logistic challenges. The low palm oil output in the largest producing countries, Indonesia and Malaysia, restricted operational load on their Fatty Alcohol facilities causing the export volumes to fall significantly for China, India, and other western countries. The supply crunch in China’s downstream industries worsened with unplanned shutdowns of the domestic Fatty Alcohol production plants like Jiangsu Shengtai (80 KTPA capacity) and Deyuan Gaoke (100 KTPA capacity) during October. India also registered a hike in the traded prices of Fatty Alcohol owing to its difficult procurement and firm offtakes in the domestic market. The demand surge was vindicated by the concerns over the rising Omicron variant spread that fueled the consumption of detergents among the end-user consumers. The slackening port congestions during December induced decrement in the price levels across Asia with CFR JNPT prices in India hovering around USD 2500/MT for C16-C18 Fatty Alcohols.
Europe
Moving in Q4-2021, the European Fatty Alcohol market maintained a bullish run taking strong cost support from the palm oil feedstock prices which kept on rallying in the international market. The high freight costs on raw material deliveries due to logistical bottlenecks and the catastrophic energy crisis in the region exerted further pressure on the input costs, thereby aggravating the woes of the manufacturers. Meanwhile, the market sentiments of the downstream detergent sector stood robust as the consumer-buying tendencies elevated amid the scare of rising Omicron cases which gave rise to rigorous stockpiling during November and December. The prices of C12-C14 Fatty Alcohols in Germany settled around USD 3240/MT during December after registering a month-on-month inflation rate of 9.7% on FOB basis.
For the Quarter Ending September 2021
North America
In Q3 2021, Spot market in US witnessed a spike in prices for all fatty alcohols particularly mid-cut fatty alcohols induced by the supply chain disruptions caused by shipping and freight issues as an impact of Ida hurricane that has been a cause of concern globally. Market participants remarked that supply has been adequate however delivery delays due to longer shipping and turnaround time has kept the supply side fundamentals in check. Demand has slowed in comparison to the previous months when downstream sectors were consuming hefty volumes, as of now demand for fatty alcohol has been steady as demand growth plateaued pointed out several market participants. As of 3rd week of August, price of fatty alcohol C12-15 was assessed at USD 2495 per MT DEL Louisiana.
Asia
In the Asian markets, Fatty Alcohol prices witnessed an uptrend during the third quarter of 2021.In Malaysia, plants were observed as shut due to covid restrictions as Southeast Asian country enforces Movement Control Orders (MCO). However, in the later stages of Q3, plants started to come online at reduced operating rates. Demand for fatty alcohols remained high in South and Southeast Asian markets meanwhile shipping inconsistencies and resolutely high freight costs had sent supply fundamentals haywire. PKO (Palm Kernel Oil) prices were also witnessed to move upwards in September given the reduced production levels and supply disruptions along with healthy demand for the material. In India, Fatty alcohols prices showed continuous rise throughout the quarter, backed by high domestic demand and inadequate availability of raw materials.
Europe
In Europe, during the third quarter of 2021, ease in PKO prices in early to mid of the quarter had limited impact on overall pricing of fatty alcohols as the logistics issues remained unresolved. Covid restrictions in Southeast Asia also meant reduction in imports to European nations resulted in tightened supply fundamentals. Demand for fatty alcohols from key segments including detergents and cosmetics remained robust which kept the consumption numbers strong. Price of fatty alcohols C12-C14 in Europe hovered around USD 1926.61-2043.38 per MT FCA Rotterdam during the quarter.
For the Quarter Ending June 2021
North America
In North America, Fatty Alcohol prices kept rising during this quarter, backed by firm demand from domestic downstream sectors. Freight remained high in effect of congestions at several trade routes and tight logistics availability in the USA. Suppliers revealed that, they faced difficulties in transporting their cargoes, as there was very low availability of trucks and rail mode transportation. Therefore, due to low supply activities prices kept tracing upward trajectory during this quarter and led the prices to reach USD 1510/MT and USD 1350/MT for C12 and C-10 respectively during the month of June in USA.
Asia
Under firm demand from market, rapid resurgence of COVID cases in several Asian countries, including India, Malaysia, Singapore, Taiwan, Thailand, and Vietnam, led to a critical shortage for palm oil across the region. Malaysian government announced restrictions on palm oil and other refineries to curb the spread of COVID infection in the country. While second wave of pandemic hit India during April mid, which reduced the overall imports of palm oil in the country due to low demand for Fatty Alcohols. However, prices remained buoyant throughout the quarter, due to a wide demand supply gap. While only C16-18 was the only grade, whose price declined due to low demand in India. Therefore, price of C16-18 and C18-22 hovered around USD 1546/MT and USD 1632/MT during the month of May in Indian market.
Europe
European market witnessed firm demand for Fatty Alcohols during this quarter, backed by improved offtakes from the domestic market amidst supply shortage. Due to fresh COVID restrictions in major palm oil exporting countries in Asia, prices of palm oil kept rising despite of reduction in their domestic demand. In addition, rising freight and shipment cost, along with rising production cost due to global inflation, exacerbated the prices of Fatty Alcohols during this timeframe. While the demand from downstream surfactant and cosmetics segment remained buoyant throughout the quarter across the region.
For the Quarter Ending March 2021
North America
The prices of Fatty Alcohols experienced a significant rise in the US during Q1 2021. Some traders cited that high volatility in feedstock PKO and strong prospects for the downstream surfactant industry as the possible price mitigating factor. This rise was largely driven by palm oil supply crisis going on globally as the Fatty Alcohol market of North America largely rely on palm oil. While palm oil prices were very soaring high, the winter storm further disrupted the supply activities across the region. Offers for Fatty Alcohol were averaged around USD 1900 per MT during the quarter.
Asia
The Asian Fatty Alcohol market remained largely stable throughout the quarter. In India, stable demand from the downstream sectors like surfactants and cosmetics reserved its stability. Although the supplies remained tight prompting producers to raise offers so as to maintain their margins. CFR price of Fatty Alcohol (C18-C22) at JNPT port increased by 0.47% to USD 1517.5 per MT in March. Amid extreme shortage and skyrocketing prices of palm oil, manufacturers shifted to other alternatives to manufacture Fatty Alcohols and to provide stability to its prices.
Europe
Surging palm oil prices and shipping containers shortage drove the fatty alcohol prices upwards in Europe during Q1 2021. As per the data revealed by Malaysian Palm Oil Council (MPOC), total palm oil imports by the European Union are projected to reach around 4 million tonnes in the first half of 2021. Although the demand from downstream surfactant sector was high amidst surging COVID-19 cases. In some places, demand was stable due to force majeures at some manufacturing units. But soaring regional demand for household products kept the sentiments upbeat.
For the Quarter Ending September 2020
Asia
Fatty Alcohol market remained largely subdued in the beginning of the third quarter, but trades and discussions were heard picking up towards the end of Q3. The market participants looked anxious over volatility and escalation in price of the key feedstock palm oil. However, some anticipated the prices to ease with the arrival of the peak harvest season, in the Aug-Sep period. Limited upstream stocks in Indonesia and Malaysia tightened the supply of oleochemicals across Southeast Asia with some buyers waiting for the feedstock prices to soften till August-end to support production margins. Recovery of certain downstream sectors remained a key concern for both buyers and sellers who preferred to keep the offers low to avoid inventory pile ups. CFR India price of C18-C22 Fatty Alcohols were assessed around USD 1400 per tonne, showing slight improvement on QoQ basis.
North America
US Fatty Alcohol market during the third quarter was largely driven by volatility across the oil palm complex, as demand from the key end-markets outside the cleaning sector showed muted recovery from the pandemic blows. Supply was heard easing with the arrival of delayed shipments from Asia while the demand in the rest of the America’s remained dampened during Q3 2020. However, temporary disruptions due to seasonal hurricanes across several parts of the US gulf and rising COVID-19 cases remained a significant concern among the regional traders. Many believed that the demand surge during Q2 proved to be short-lived, as supply lengthened with a gradual lift in lockdowns and other coronavirus-related movement restrictions prompting consumers to get back to normal purchasing habits.
Europe
Supply chain disruptions which were heard during Q2 across Europe were heard significantly easing moving into Q3, prompting buyers to replenish their stocks. At the same time, suppliers were cautious as production may remain impacted as some Fatty Alcohol producers in Europe were planning to announce turnarounds and maintenance-related work in the coming months, thereby affecting the supply. Buyers remained of the view that the price trend going ahead, will all depend on the way palm kernel oil (PKO) behave as the demand continued to soften but higher PKO costs may mitigate the trend in the forthcoming quarters.
