Nonyl Phenol Market Is Set To End September 2024 On A Stagnant Note In the US And Asia

Nonyl Phenol prices are expected to remain stagnant globally by the end of September 2024 in both the Asian and U.S. markets, as downstream demand shows no signs of recovery. Price movements for Nonyl Phenol are likely to stall at the close of Q3 2024, as supply shortages and rising production costs overshadow weak demand fundamentals. From the upstream side, the settlement price for WTI crude oil futures in the U.S. rose by 1.8% to USD 71.16 per barrel, while Brent crude oil futures increased by 1.4% to USD 74.01 per barrel. Although some industry players anticipate further declines in the downstream market due to high operating costs and narrow profit margins, uncertainty in the global economy tempers this outlook, leaving Nonyl Phenol demand fundamentals unpredictable for now.

In Asia, Nonyl Phenol prices are expected to trend downward as demand from the downstream surfactant industry shows no signs of recovery, prompting Nonyl Phenol producers to limit production rates to protect their margins toward the end of Q3. In India, demand for Nonyl Phenol has remained moderate this month, with consumer purchasing enthusiasm in the surfactant sector notably subdued. Galaxy Surfactants, a specialty chemicals manufacturer in India, has seen better availability of containers in recent weeks, however, there has been no significant decrease in freight rates. Downstream buyers have adopted a cautious approach, focusing on immediate spot purchases with little interest in forward buying. Overall, trading activity remains sluggish, characterized by low inquiry levels and weak market sentiment. Since August, competitive pressures and economic-related concerns have further dampened business confidence in Asia.

Meanwhile, the American Nonyl Phenol market situation remained balanced during this time frame, with no marked shift in the purchasing sentiments from the downstream Ethoxylates and surfactant industry and reduced production rates. Nonyl Phenol buyers have temporarily halted purchasing activities, anticipating further price reductions as the downstream market grapples with challenges such as logistical issues and disrupted production rates caused by the impact of Hurricane Francine in the USA. From the upstream perspective, Oil prices climbed this week following the new monetary stimulus measures from China, the world's largest importer, and concerns that rising tensions in the Middle East could disrupt supply from this key producing region. Additionally, a major hurricane threatening the U.S., the world's top crude producer, further supported the price increase.

In conclusion, Nonyl Phenol manufacturers have reported a stable price trend for the time being, driven by lower sales, reduced production, and decreased output. Additionally, demand has weakened across major end markets during the latter half of the month. As per ChemaAnalyst, Nonyl Phenol prices are expected to consolidate within a narrow range in the U.S. and Asian markets by the end of September 2024, due to minimal changes in downstream Ethoxylates surfactant demand and tightening supply conditions.