Maintenance turnaround by Japanese giant KH Neochem, affecting supplies of 2-Ethyl Hexanoic Acid across Asian market

Asian market has been witnessing frequent hiccups since a long time, due to several factors that kept market dynamics oscillating during past several months. As per ChemAnalyst sources, Japanese 2-Ethylhexanoic Acid giant KH Neo Chem has stopped providing price quotation for spot buyers due to ongoing maintenance turnaround. As per the information, this maintenance turnaround will last till the end of April, which will keep on affecting supplies across Asian market.

KH Neo Chem is one the leading manufacturer of 2-Ethylhexanoic Acid in global market, thus any halt in production or disturbance in supplies affects the price dynamics in Asia as well as in international market. Recent global phenomenon revealed that 2-Ethylhexanoic Acid price has been rising across global market with different pace and some major producers like OQ Chemicals are frequently revising their offers for global market.

As per recent announcement by OQ Chemicals, they have increased their 2-Ethyhexanoic Acid prices by USD 500/MT for global market, which will be effective from 1^st January 2022. However, this hike was primarily driven by rising input cost, but this maintenance turnaround might further affect the price trend for global market. A primary respondent revealed that, traders may start increasing their 2-Ethylhexanoic Acid pricing quotations, if they observe any slight change in supplies for 2-Ethylhexanoic Acid.

As per ChemAnalyst analysis, this plant turnaround may affect the overall supply activities for Asian market. However, demand fundamentals are low due to the seasonal lull which might restrict the anticipated hike in prices. Furthermore, rising threat of Omicron variant, which is already dominating European market, might slow down the offtakes from niche buyers. Conclusively, it will be interesting to see actual 2-Ethylhexanoic Acid demand supply outlook across global market under current market scenario.