Amidst Ascending Upstream Prices, Detergent Alcohol Prices Edge Higher in the European Market

Hamburg, Germany: The prices of Detergent Alcohol have demonstrated a rising trend over the past few weeks. The improvement in manufacturing activities with ease in input cost inflation has been gradually reinforcing the market sentiments of Detergent Alcohol. The prices of upstream Palm Oil has stayed higher in the major producing nation, Indonesia and Malaysia. The active procurement from Asian countries has diminished Palm Oil stocks, and as a result, the inventory balance has been hampered. Indonesia's export curbs have prompted overseas buyers to switch to upstream Palm Oil supplies from Malaysia. As per the Malaysian Palm Oil Board, Malaysia's total Palm oil inventories decreased by 21.08 percent in March from the 2.12 million tonnes reported the month before to 1.67 million tonnes. In addition, Malaysia also maintained its export tax for crude Palm Oil at 8% for May, pressuring the production costs for Detergent Alcohol for the importing countries.

In Germany, The downstream detergent manufacturers reported a fall in quarterly sales volumes as higher prices for upstream raw material has hit consumer demand throughout the last year. Although, a slump in energy costs and improved supply-chain bottlenecks have been streamlining the downstream demand from the surfactant and detergent industries. Furthermore, inflation has also dropped across the European market, and it is anticipated that the decline in inflation will further contribute to the market growth of Detergent Alcohol.

On the other hand, Detergent Alcohol prices have remained buoyant in the UK market. The tight upstream Palm Oil supplies and still high inflationary pressure have pressured the manufacturing activities in the domestic region. In addition, the subdued market demand and weaker export volumes have led to production cuts in the domestic region. The cumulative effect of all these factors has led to a rise in the price realizations of Detergent Alcohol in the week ending 14th April.

As per ChemAnalyst, the prices of Detergent Alcohol might remain buoyant in the German market on the back of tight upstream Palm Oil supplies. Industrial output is expected to increase further in the coming months amid lower energy prices and easing supply constraints. However, the rise in Crude Oil prices might keep the operational costs of Detergent Alcohol buoyant amid the production cut announcement by OPEC+ members at the start of the second quarter of 2023.