Nonylphenol Ethoxylates: Prices Flows Against Odds in India, Other Markets See a Fall

The global market for Nonylphenol Ethoxylates has experienced a mixed trend in recent weeks. While prices have declined in the US, Chinese, and European markets, India has seen a significant surge in Nonylphenol Ethoxylates’ prices due to rising freight charges.

The prices of Nonylphenol Ethoxylates experienced a decline in the domestic US market for the week ending 13th September. This downturn can be attributed to several factors, including decline in  crude oil prices.

Considering upstream, the cost of ethylene oxide, a key component in the production of Nonylphenol Ethoxylates, has increased. However, the impact of this increase has been offset by the decline in oil prices. Brent Crude was trading at around USD 72 per barrel, while US WTI has fallen below USD 70, reaching its lowest level in 14 months.

Taking these factors into account, the prices of Nonylphenol Ethoxylates 9.5 Mole FOB Gulf Coast were settled at USD 2570/MT in the week ending September 13th. A similar price trend has been observed for Nonylphenol Ethoxylates in the Chinese and European markets.

While global prices for Nonylphenol Ethoxylates have been on a downward trend, the domestic Indian market has witnessed a surge in Nonylphenol Ethoxylates prices due to escalating freight charges, created an expensive imports scenario for domestic buyers.

Despite the decline in upstream ethylene oxide prices, the cost of transporting these raw materials to India has skyrocketed resulting in high manufacturing Cost of Nonylphenol Ethoxylates. Freight rates across Indian ports have experienced a significant 70% increase in August compared to the previous year, primarily driven by persistent demand, capacity constraints, and disruptions in global shipping.

The average cost of 40-foot high cube cargo-worthy containers in domestic ports like Chennai, Nhava Sheva, and Mundra has risen from USD 2650 in the first quarter of 2024 to over USD 2850 in the second quarter, and this upward trend continued into the third quarter.

The ongoing geopolitical turmoil has been the primary catalyst for the surge in freight costs. The resulting disruptions to global supply chains and increased transportation expenses are expected to significantly impact the profitability of Indian businesses with substantial overseas operations in the upcoming financial year.

According to ChemAnalyst pricing intelligence, Nonylphenol Ethoxylates’ prices are likely to decrease globally. Potential decreases in crude oil prices are expected to lower the manufacturing costs for Nonylphenol Ethoxylates, which may affect the pricing situation of the product. Further, demand outlook also seems pessimistic due to arriving seasonal lull.