For the Quarter Ending June 2022
North America
The Fatty Alcohol Ethoxylate (FAE) market in the North American region remained bullish during the second quarter of 2022. The inflation majorly caused this market development after the U.S, and the E.U, with the support of G20 nations, imposed sanctions on Russia. The cost support from the upstream fatty alcohol and oil market remains persistently on an upward trajectory, although some relief was bought due to the COVID shutdown in China that eased the PKO prices. The contract negotiations diverge against competing for feedstock and supply/demand fundamentals in the domestic market. However, prices of FAE reduced during the second half of June amidst the easiness in the PKO cost.
Asia Pacific
During the second quarter of 2022, the Fatty Alcohol Ethoxylates market in the Asia Pacific was bearish. The resurgence of COVID in China forced the authorities to impose the shutdown, which was prolonged for three months in northeast China. Therefore, the Fatty Alcohol Ethoxylate supply chain disruption significantly impacted the inquiries for the PKO. A major market source stated that the Chinese players in the Southeastern market were absent for a significant period. In response to the lower cost support from the upstream PKO coupled with the slowed demand in the Chinese domestic market, weakened the sentiments of the Fatty Alcohol Ethyoxylate producers, and the quotations were dropped in the Asia Pacific region despite the ongoing ban on the exports of the Indonesian Palm Oil.
Europe
In the second quarter of 2022, the Fatty Alcohol Ethoxylate market in the European region observed a mixed sentiment that varies across the region. The retaliatory measures against Russia have resulted in a record high inflation in the European markets. Buyers were more keener toward procuring the finished goods than manufacturing as the demand has significantly dropped in the European markets amidst the holiday season. In addition, the discussions for palm oil in the domestic market eased significantly. As a ripple effect, the discussion of Fatty Alcohol Ethoxylates varies across the sub-regions in Europe.
For the Quarter Ending March 2022
North America
In the North American region, Fatty Alcohol Ethoxylates (FAE) prices continued to trace an upward trajectory in the first quarter of 2022. The market remained buoyed by raw material scarcity, logistic disruption, and various production constraints in the region. Following a fire accident at ExxonMobil's Baytown refinery in late December, refinery's activities were halted, resulting in a supply deficit of upstream olefins. As a result, considerable price revisions were observed in the domestic market. Accordingly, raw material costs were dragged by the high upstream pricing, which was transferred to feedstock. Thus, offers for FAE were assessed as USD 2817/MT in the United States towards the end of the quarter.
Asia Pacific
Fatty Alcohol Ethoxylates market entered the first quarter of 2022 with an upsurge in the prices and maintained the uptrend throughout the period. Stronger feedstock values in the international market and supply shortage due to limited imports from Malaysia kept the prices on the higher side. Closing December floods in Malaysia have squeezed palm oil production so intense that the downstream industries and trade activity crippled this quarter. Asian buyers were heard turning to Indonesia, a competitor country, to obtain Fatty Alcohol Ethoxylates stocks. In the meantime, the demand for the product in Chinese downstream cleaning industries continued to spiral with a broader and stronger Omicron impact. Conclusively, the pricing for Fatty Alcohol Ethoxylates 3 Mole was assessed at USD 2654/MT EO CFR JNPT in India during March, after registering a hike of 3.1% from the prices assessed in the last quarter.
Europe
During the first quarter of 2022, the Fatty Acid Ethoxylates market witnessed a bullish pricing trend in the European region. The worsening economic crisis, set against the backdrop of the Russia-Ukrainian conflict, caused this upward trend. Because of the restricted freight movements linked with the war in the entire region, the PCC company (Poland), a leading exporter, could not obtain raw materials from Russia. As a result, the regional Fatty Alcohol Ethoxylates market and the downstream surfactant and cosmetic industry were hit by limited product supplies from Poland. In addition, the German prices of FAE reached USD 3260/MT FOB Hamburg in March, owing to supply constraints and inflationary pressures in the bullish raw material market.
For the Quarter Ending December 2021
North America
In North America, prices of Fatty Acid Ethoxylates started the fourth quarter on firm note based on the substantial price hike of energy feedstocks. Proportionally, upstream Ethylene Oxide and Fatty Alcohols displayed a remarkable spike in prices because of limited material availability in the market. Feedstock EO prices remained strong as volatility about energy feedstocks that continued to hover predominantly over petrochemical industry. Increased penetration of Fatty Acid Ethoxylates into the international market, growing production of ethoxylates based products as per DowDuPont Inc., Huntsman International LLC, and continuously growing pharmaceutical sector, have supported the healthy supply-demand fundamentals of the product. The increased consumption of cosmetics and personal care products was also observed owing to the improved lifestyle, which significantly effected in price rise in North America.
Asia Pacific
Fatty Alcohol Ethoxylates (FAE) market in India entered the fourth quarter of 2021 with an upsurge in the prices. The stronger feedstock in the overseas market and supply shortage due to limited imports from Malaysia caused the prices to stay buoyed in October. The Malaysian floods have affected the feedstock palm oil production to a severe extent causing the downstream industries, especially surfactant industry and their export activity to cripple. With an increased demand-supply gap resulted from Malaysian import dullness, buyers in India were shifting to the contender country Indonesia for acquiring Fatty Acid Ethoxylates stocks. Thereby, Fatty Acid Ethoxylates market stabilized in the month of December as the demand from the domestic market remained satisfied, while availability also remained ample enough to fulfill the overall demand in the region. The prices fluctuated between USD 2529.74/MT in October and USD 2506.92/MT in December FAE 3 Mole EO CFR JNPT (India).
Europe
During the fourth quarter of 2021, the Fatty Acid Ethoxylates market has witnessed an upward price trajectory in the European region due to a steady increase in the feedstock Fatty Alcohol and Ethylene Oxide prices. The skyrocketing palm oil feedstock prices in the global market also overwhelmed Fatty Acid Ethoxylates prices in the region. In the fourth quarter, major contributors to the regional market growth were Germany, Italy, Spain, France, and U.K, catered the demand against the pandemic. In addition, the freight charges for the international expresses from Asia Pacific region to Europe are currently staggering to all time high and induces additional costs support in the domestic quotations of Fatty Acid Ethoxylates.
For the Quarter Ending September 2021
North America
In Q3 2021, Fatty Alcohol Ethoxylates (FAE) values experienced an upward rally in North America. Inflation in the pricing trend of FAE was supported by the soaring upstream prices as well as the firm demand from downstream manufacturers in the third quarter. Constrained availability of Fatty Alcohols and Ethylene Oxide due to the supply chain disruption and lower production rates as an impact of Ida hurricane in August end has adversely affected their prices across the region. Thus, Fatty Alcohol Ethoxylates market outlook appeared to be bullish with robust demand and tight fundamentals in this timeframe.
Asia
In the Asian market, Fatty Alcohol Ethoxylates prices witnessed an upward trend during Q3 of 2021. In India, Fatty Alcohol Ethoxylates market encountered squeezed supplies of the feedstock backed by the delayed imports from major exporting countries such as Malaysia and Indonesia which resulted into the hike in the prices of FAE in the regional markets. In addition, skyrocketing freight charges further sent ripples to the prices of FAE in India. Besides, the demand from the downstream sectors remained firm throughout the quarter which also exerted pressure on the Fatty Alcohol market in India. Therefore, Fatty Alcohol Ethoxylates Ex Mumbai prices rose to USD 2734.46 from USD 2629.09 from July to September.
Europe
In Europe, Fatty Alcohol Ethoxylates prices remained firm throughout Q3 backed by the constant rise in the feedstock Fatty Alcohol and Ethylene Oxide values. Moreover, many manufacturers in Europe were compelled to curtail their production rates due to the natural gas crisis that further exerted burden on the FAE market. Delayed imports from Asian countries because of the congestion on several ports of China followed by the coronavirus zero tolerance policies also aided the spike in the values of FAE in this timeframe in Europe during this quarter.
For the Quarter Ending June 2021
North America
Fatty Alcohol Ethoxylates (FAE) prices-maintained buoyancy during this quarter, backed by firm demand from downstream surfactant manufacturers in the North America region. However, the feedstocks Ethylene Oxide and Fatty Alcohol showcased mixed sentiments during this period. Fatty Alcohol prices remained bullish throughout the quarter in USA, due to firm demand and expensive imports from Asia. The overall price trend of FAE remained bullish, supported by firm offtakes and high feedstock prices in USA, during this quarter. In addition, logistical issues further added value in the prices of FAE, amidst tight supply of fatty alcohols.
Asia
The demand of Fatty Alcohol Ethoxylates (FAE) showcased bearish sentiments during this quarter in APAC region, due to reduced demand from downstream surfactant manufacturers. However, manufacturers from China exported more than 1014 MT to Indian downstream surfactant manufactures during the month of June. Overall import activities remained muted in May, under the pressure of pandemic in India. In addition, compared to the previous quarter, imports of FAE increased to almost double in Q2 2021, while most of the shipment were traded from China to India. The reason behind this rise in imports was inadequate availability of FAE in the country, as importers were planning to procure cargoes for future demand in domestic market. Therefore, overall scenario created a jump in prices of FAE in the Indian market, where the price settled at USD 1735/MT for C18-22 and USD 1705/MT for C16-18 in India during June.
Europe
Rise in feedstock fatty alcohol prices supported the uptrend of Fatty Alcohol Ethoxylates (FAE) in Europe during Q2 2021. While the demand from downstream surfactant sector remained bullish throughout the quarter, backed by improving offtakes from domestic end users. However, ready availability of FAE remained low in the region that increased the demand for imports. While the imported feedstock prices were higher than the previous quarter, due to extreme rise in prices of upstream palm oil in Asian countries like Malaysia. Therefore, the overall price trend of FAE remained high in Europe during Q2 2021.
For the Quarter Ending March 2021
North America
Shortage of feedstock chemicals compelled makers to raise their FAE prices across the region. Under winter freeze in the US gulf coast several plant operations remained idled, creating acute shortage of feedstock Ethylene Oxide (EO) and Fatty Alcohols. More than 65% of EO production was observed halted which led to rise in its prices. In addition, low availability and fuming prices of palm kernel oil (PKO) drove the prices of Fatty Alcohols to crazy high. Continued shipping delays, persistent labour shortages and tight shipping lent a strong support to price curve. While the demand for downstream surfactants remained well support many consumers awaited lift in raw material plant shutdowns. Shell confirmed to lift the force majeure at its linear alcohols and ethoxylates plant at US Geismar, Louisiana, by the end of April.
Asia
In the Asian markets, sufficient availability and high demand amid soaring feedstock prices, caused fluctuation in the prices Fatty Alcohol Ethoxylates (FAE). Due to consistent increment in the upstream crude oil value, prices of downstream chemicals also increased including feedstock EO in the region. In addition, Chinese Lunar New Year holidays and container shortages across prime trade routes drove the prices of several chemicals to rise effectively including FAE. In the meantime, the price of Fatty Alcohol Ethoxylates (FAE) kept oscillating and hovered around USD 2207.7/MT in the Indian market.
Europe
The European countries also faced the shortage of feedstock EO and Fatty Alcohols, which ultimately skyrocketed the prices of Fatty Alcohol Ethoxylates, finding key usage in surfactants. Huge shortage and crazy high prices of palm oil further supported the prices of fatty alcohols, and volatile prices of EO due to shortage of Ethylene also marked a steep rise during the quarter. In addition, all these factors, battered with high freight and container cost, compelled the prices of Fatty Alcohol Ethoxylates (FAE) to gain a significant value.
For the Quarter Ending December 2020
Asia
Realizations for FAE were pegged higher than the previous quarter amid traders turning cautiously optimistic on the demand front. Acute volatility on the raw material front which seemed oscillating in terms of pricing over periods of time significantly raised FAE offers for Q1 2021. Malaysian palm oil prices jumped straight to eight-year highs in November after hampered production levels in October. Demand from the cleaning sector seemed buoyant after restocking activity from the buyers took a big leap before the year-end. The raw material surge triggered a sharp spike in Fatty Alcohol offers in India which were averaged around USD 1665 per tonne in December. Some producers expressed anticipations that reduced annual palm harvest in Southeast Asia will put upwards pressure on the regional market even in the next quarter.
North America
Buoyant performance of the surfactant industry propped up the regional Ethoxylates production as manufacturers reported high plant utilization rates and improved sales. Upstream Ethylene Oxide and Fatty Alcohols showed significant jump in prices due to limited material availability. Traded volumes remained affected due to constrained ocean logistics in the last three months of the year, keeping the CFR prices significantly up from the previous quarter. The quarter started with a mega deal between two chemical giants-Lyondellbasell and Sasol wherein the former proposed to buy 50% stake in the latter’s newly constructed Lakes Charles project. As per the deal, Sasol will retain its alcohols, ethylene oxide/ethylene glycol, and ethoxylation plants, and hand over 50% stake in its ethylene cracker and in LDPE and LLDPE plants to Lyondellbasell.
Europe
The European FAE market remained weighed under supply chain disruptions despite some unplanned cracker turnarounds during the quarter ending September. Abrupt surge in the Asian Fatty Alcohol rates starting mid-November raised the overall production cost for the European FAE producers. While volatility in the feedstock palm oil prices continued to pose the industry at risk, resilient demand for surfactants raised the regional offers. The Malaysian Petronas Chemicals Group (PCG) and the German chemicals and energy company PCC entered into a strategic partnership to construct the oxyalkylates (ethoxylates and polyether polyols) facility within the Kertih Integrated Petrochemical Complex, Terengganu. The construction is likely to begin in 2021.
