For the Quarter Ending March 2024
North America
The 2-Ethylhexanol (2-EH) prices across the North American overall exhibited a bullish market situation with prices overall witnessing an increment of approximately 30% during the first quarter of this year. The US 2-EH market was supported from the cost side as many oxo-alcohol producers namely Eastman Chemicals and OQ Chemicals have initiated several prices hikes throughout this quarter.
Also, with the improvement in weather conditions across the US market from middle of February 2024, the downstream construction and automotive sectors improved providing enough support to the US 2-EH prices. After the Arctic Blast recorded in January 2024, the US construction sector displayed notable improvements. US automotive sales soared throughout the first quarter of 2024, increasing by 31%, which led to healthy demand from the downstream plasticizer industry. Also driving the US 2-EH was the healthy performance of the construction sector. The US construction sector continued to expand throughout the first quarter of 2024.
The rise in the construction sector was primarily attributed to the upturns in residential construction, commercial building, and civil engineering activities. Moreover, as the US homebuying season approached, existing inventories of 2-EH continue to come under pressure. Stability in the mortgage rates also continued to positive outlook amongst the prospective homebuyers, creating further pressure on the downstream plasticizer sector. Also, during the middle of the first quarter supply conditions were recorded to have been uncertain as OQ Chemicals, a leading producer of oxo-alcohol declared a force majeure at its Oberhausen site in Germany, which threatened the supply dynamics of 2-EH. Moreover, several plants, including LyondellBasell in Corpus Christi, Shell Chemical in Deer Park, Dow Chemical in Freeport, and Enterprise Product in Mount Belview, all located in Texas, experienced disruptions in their operations, leading to a shortage in the prices of feedstock Propylene (Refinery Grade) and subsequently increasing the prices of 2-EH.
Asia
The Asian 2 Ethyl hexanol market witnessed bearish situation throughout the first quarter of 2024 largely on the back of reduced demand from the downstream plasticizer industry. The reduced demand for the product largely stemmed from the underperformance of the Chinese construction sector in which investment sentiments continued to remain low. The termination of peak festive Chinese Lunar New Year led to destocking activities which increased the supplies of the product, thereby compelling prices of the product to fall. With weather conditions also remaining challenging, across Shandong the circulation of the product was also slow. Moreover, the prices hikes initiated by leading major oxo-alcohol producers such as OQ Chemicals and Eastman Chemicals did not have any effects on the prices of the product across Asia. The Chinese 2-EH market was primarily driven by low demand from the construction industry. With China’s construction sector being largely crisis, existing construction activities were either postponed, or completely halted, thereby prompting the prices of 2 EH to fall. Overall prices of 2-EH were recorded to have depreciated by approximately 20% after the termination of first quarter of 2024. Also, during the middle of the first quarter supply conditions were recorded to have been uncertain as OQ Chemicals, a leading producer of oxo-alcohol declared a force majeure at its Oberhausen site in Germany, which threatened the supply dynamics of 2-EH.
Europe
The prices of 2-EH across the European market were recorded to have inflated by more than 50% during the first quarter of 2024. The chief reasons considered for the increments in the prices of the product are largely due to the persistent crisis at the Red Sea which led to the shortage of feedstock Propylene which also inflated due to plant shutdowns across Europe and the USA from where Propylene is imported into Europe. Moreover, the supply conditions for 2-EH further became restrictive due to the force declared by one of the major leading producers of oxo-alcohols namely OQ Chemicals, declared a force majeure at their site in Oberhausen, Germany on February 27, 2024. Overall prices of feedstock Propylene increased by approximately 35% which increased production costs. However, the market for European 2-EH from the demand side. The primary demand from the downstream construction sector across Europe remained largely in retrenchment. Steep contractions were largely noted across all the three segments of the construction sector, namely housebuilding, commercial construction, and civil engineering activities. The continued drag on the construction sector largely stemmed from the housebuilding segment as house prices and permits continued to decline. The only support to the demand for 2-EH originated from the secondary automotive sector, which had witnessed substantial improvements towards the termination of the first quarter of 2024.
For the Quarter Ending December 2023
North America
During the fourth quarter of 2023, the North American 2-Ethylhexanol market encountered a series of challenges that influenced market dynamics and pricing. A notable factor was the decline in demand from the downstream PVC sector, contributing to a reduction in prices. Additionally, the market grappled with sufficient raw material availability for 2-Ethylhexanol production, supported by existing stockpiles, further contributing to the decline in prices.
An unplanned shutdown of propylene feedstock plants, particularly those operated by Dow Chemical and BASF Total Energies Petrochemicals, disrupted the overall supply chain. Despite these challenges, there were indications of a potential recovery in the USA market. OQ Chemicals, a significant player in the oxo-alcohol industry, announced a price increase for 2-Ethylhexanol in November, presenting a prospect for a positive market trend.
Furthermore, optimism was derived from the anticipated demand surge in the construction sector, potentially driving an improvement in the overall market conditions. It is pertinent to highlight that the recorded price of 2-Ethylhexanol in the USA during the fourth quarter stood at USD 1840/MT FOB Louisiana. Despite facing challenges, the market exhibited promising signs of recovery in the ensuing months.
APAC
In the APAC region, the 2-Ethylhexanol market in the fourth quarter of 2023 experienced a confluence of factors that exerted influence on pricing dynamics. A prominent factor contributing to market fluctuations was the ongoing shutdowns of major feedstock propylene plants, resulting in a constrained supply of 2-Ethylhexanol. Furthermore, a diminishing demand from downstream industries, particularly in construction and PVC sectors, played a pivotal role in shaping market conditions and influencing price trends. The prevailing economic conditions, as indicated by the slight decline in China's manufacturing industry PMI during this period, contributed to a weakened demand for the product. Notably, in China, which witnessed substantial changes in prices, the 2-Ethylhexanol market experienced a decline, with prices diminishing by over 5% throughout the quarter. This decline was attributable to a combination of factors, including reduced demand from downstream industries and an augmented supply resulting from new production capacities. The bearish market situation was further reinforced by maintenance shutdowns at several feedstock propylene plants, curbing the availability of raw materials. Analyzing the price trends in China for the current quarter, stability was observed when compared to the previous quarter. However, a discernible uptick of 8% in prices was evident compared to the same quarter of the previous year. Additionally, the price comparison between the first and second halves of the quarter indicated an 8% increase, hinting at a potential upward trajectory. As of the quarter ending, the latest recorded price for 2-Ethylhexanol Spot EX-Shandong in China was USD 1808/MT.
Europe
The European 2-Ethylhexanol (2-EH) market encountered significant challenges during the fourth quarter of 2023, marked by subdued demand and abundant supply. Several factors contributed to the market dynamics. Firstly, the overall economic deceleration in Europe, manifested through a contraction in industrial activities, resulted in diminished demand for oxo-alcohols. The downstream paints and coatings industry experienced a corresponding decline in demand, further impacting the overall market. Moreover, the prolonged escalation in propylene feedstock prices compressed profit margins for producers, necessitating adjustments in output and production costs. Notably, Total Energies in Antwerp, Belgium, strategically initiated maintenance turnaround for their feedstock Propylene unit, introducing an additional element affecting market dynamics in the region. Despite a brief surge in market dynamics in November, particularly in Belgium, driven by OQ Chemicals' announcement of a 2-EH price hike, the overall market remained bearish, characterized by low demand and moderate supply. While demand from the downstream automotive industry provided a glimmer of optimism, broader economic conditions and inflationary concerns cast a shadow over market sentiment. Analyzing price trends, Belgium experienced a substantial -59% decrease in prices compared to the same quarter in the previous year. The quarter-on-quarter change further reflected the challenging market conditions, with a decline of -11%.
For the Quarter Ending September 2023
North America
During the third quarter, the overall market of 2-EH in the USA declined drastically amid the dwindling demand from key end-user sectors, including Paint and Coatings, Adhesives, and Industrial Chemicals. Despite the improvement in economic activities in the USA during July, the oxo-alcohol market remained subdued amid lower-than-expected inquiries from India as well as Germany. Due to the ongoing monsoon season in India, the demand for the product in the downstream construction industry remains muted. Similarly, during August, the lowkey trading activity in Europe further decreased the import queries from the USA. Hence, to remain competitive in the market, US traders decrease their posted prices to settle at 1963 USD/tonne 2-EH FOB Texas USA during August 2023. Additionally, the cost price of 2-Ethyl Hexanol underwent a noticeable decrease due to the falling prices of its feedstock, specifically propylene. This decline in feedstock prices further exacerbated the downward pressure on the market price of 2-Ethyl Hexanol, making it more affordable for manufacturers but also gesturing a less profitable environment for producers during September.
Asia
The 2-EH prices in China experienced a significant rise during the third quarter compared with the previous quarter amid the supply tightness in China's domestic market. Multiple 2-EH plants went under maintenance turnaround during the entire quarter, including Anqing Shuguang in Anhul, Tianjin Soda in Tianjin, and PetroChina Jilin Petrochemical in Jilin, respectively, which disrupted the supply chain of the domestic market. Along with this, multiple feedstock propylene plants went under maintenance shutdown throughout the period. This includes Sinopec Hainan Petrochemical in Yangpu, Fujian Meide in Jiangyin, and BASF-YPC in Nanjing during July, August, and September, respectively. As a ripple effect, high values of feedstock propylene have made it more expensive to produce 2-ethyl hexanol, so producers have kept the production optimal. Moreover, the downstream DOP market has significantly increased with good cost support, further increasing the demand for the product. The multiple positive factors, under the influence of supply-demand, bring prosperity to the Chinese market to settle the prices at 1680 USD/tonne 2-EH Spot EX-Shandong, China during September.
Europe
The German market players have observed a significant downtrend in the prices of 2-EH during the third quarter amid lesser demand from other oxo-alcohol along with sufficient availability. The decline in factory production during July is a sign of weakness in the manufacturing sector. Moreover, factory production fell sharply in the period as businesses of oxo-alcohol in Europe cut back on orders, purchases, and inventories. As a ripple effect, weak economic conditions and lower demand led to shorter delivery times and lower input prices. As per the Eurostat, the German Production in Construction fell from 113.4 in July to 110.7 in August, which indicates the low performance of the downstream construction industry, which led the demand for 2-EH to fall more sharply than expected. However, due to high feedstock propylene prices, the production unit of 2-EH was operating with normal run rates, which was enough to cater to the subdued demand. Likewise, For the first time since last year, 2-EH prices have fallen to their lowest level ever during September to settle at USD 1400/MT FOB Hamburg, Germany.
For the Quarter Ending June 2023
North America
During the second quarter of 2023, overall, the 2-Ethylhexanol market in the US has declined compared with the first quarter, which was influenced by feedstock propylene prices. An indicative drop in the price trend of 2-Ethylhexanol has been observed during April and May amid slack demand across the domestic as well as export end market. This has affected the buying sentiments along with the trading activities. As per the data, the Industrial Production Total Index in the US fell from 103.1 (April) to 103 (May), contributing to the slowdown in the economy. Constant downtrends in feedstock propylene prices were observed along with the fluctuating crude oil prices. Furthermore, buyers secured bulky volumes from the US in order to meet the requirements for products with low bidding and shrinking profit among the industrialists. According to the Federal meeting held in May 2023, the PVC construction sector would get affected by the upcoming recession in the US amid lower buying sentiments of consumers. Despite the weaker feedstock prices, 2-Ethylhexanol prices increased during June amid a strong market with high purchasing activities.
Asia
During the second quarter, 2-Ethylhexanol prices experienced wide fluctuations, followed by the first quarter. Prices declined initially, then increased, and finally, around the end of the quarter, decreased. Due to the weaker trading market, a substantial drop in 2-Ethylhexanol prices was observed during April. Furthermore, ample inventories and weak market fundamentals affected the downtrend. The demand for the 2-Ethylhexanol market from the downstream Dioctyl Phthalate (DOP) slumped with deteriorating purchasing from end users has affected domestic Chinese as well as overseas markets. Interestingly, due to the muted demand from downstream industries, the availability of the product got hampered during May in order to balance out the price trend. Nan Ya Plastics, Mai Liao, Taiwan, for 2-Ethylhexanol, was operating at lower run rates, which has influenced the price trend to grow. Several Maintenance turnarounds were observed for Oxo-alcohol, including Luxi Chemical Group, Shandong Qilu Plasticizers, and Dongming Dongfang Chemical during May. On the other side, low imports kept on affecting the availability of material and prices of 2-ethyl hexanol. However, Feedstock propylene prices were continuously decreasing throughout the quarter to settle at 840 USD/ tonne FOB Qingdao (China).
Europe
The average pricing trend of 2-Ethylhexanol during the second quarter in the European market remained weak as compared to the first quarter. A marginal upward trend in prices was observed during April 2023 amid healthy trading fundamentals in the European market. Local producers robust their production rates due to the elevating demand for 2-Ethylhexanol in order to gain profit margins. Moreover, low product inventories further pressured the producers to offer their cargo at elevated rates. As per the data, Production in Industry-Manufacturing in Germany rose from 97.5 (March) to 97.6 (April), influencing the economic activities to be higher for April. On the contrary, Feedstock propylene prices were continuously decreasing throughout the quarter. Due to the muted demand, BASF, Ludwigshafen, in Germany, went into maintenance turnaround during June, which has affected the overall pricing trend of 2-Ethylhexanol to show a downtrend. Ample inventories were stockpiled in advance of the turnaround to ensure that the supply chain would not be disrupted. This has affected the PVC production unit to continue operating at reduced rates in order to avoid excessive stockpiles in the previous month.
For the Quarter Ending March 2023
North America
In the US market, 2-Ethyl Hexanol prices increased throughout the quarter owing to rising upstream costs and improved performance of the downstream industries. Upstream Propylene prices rose consistently during the quarter, which provided ample cost support to 2-Ethyl Hexanol. Meanwhile, the downstream demand from the paints & coatings industry has improved post the New Year holidays in the US market. Meanwhile, imports remained snug into the US market as key importing ports of the US West Coast witnessed logistical issues and temporary shutdowns, which resulted in long supply dynamics of several petrochemicals, including 2-EH. Thus, after the conclusion of Q1, 2-Ethyl Hexanol prices in the USA were assessed at USD 2690 per MT.
APAC
2-Ethyl Hexanol (2-EH) prices witnessed a fluctuating trend in the first quarter of 2023. Prices improved initially then declined and finally, recovered towards the end of the quarter. In January, due to an improvement in demand from the construction sector and high upstream propene costs, 2-Ethyl Hexanol prices rose in the Chinese market. In February, 2-EH prices in the Chinese market decreased due to insufficient upstream support and weakened demand. Furthermore, 2 EH prices observed an inclining trend during March 2023 due to high consumption from the downstream industries. Positive price movement was caused by the fairly high domestic demand for 2-EH in China and a limited amount of product availability in the market. The tight supply from the traders and insufficient supply to cater to the demand from the downstream industries increased the cost of the product. Thus, after the conclusion of the first quarter, 2-Ethyl Hexanol prices in China were assessed at USD 1400 per MT.
Europe
2-Ethyl Hexanol prices in Germany recovered towards the very end of the first quarter after observing a consistent decline in the first two months. Low demand coupled with weak feedstock Propylene costs and declining energy costs resulted in a consistent decrease in 2-Ethylhexanol prices. In March, the price of 2-Ethyl Hexanol increased in the German market, backed by increased demand from other European countries. As automotive industry witnessed substantial improvement after a below-par performance in the last two years. Thus, after the conclusion of Q1, 2-Ethyl Hexanol in Germany prices were assessed at USD 2105 per MT. Meanwhile, the European region witnessed several instances of labor strikes and other issues, which resulted in snug logistics
For the Quarter Ending December 2022
North America
The cost of 2-Ethylhexanol (2-EH) decreased during the final quarter of 2022 in the American market. The price decline during Q4 2022 was abetted by the easing of upstream propylene prices brought on by higher production rates and disrupted export levels brought on by technical issues with the freeport exporting facility. Price further declined during Q4 2022 as the demand from the downstream construction sector was poor in the US due to the year-end destocking and poor buying activities during the festive conditions. At the conclusion of the fourth quarter of 2022, 2-EH was selling for roughly USD 2254/MT in the American market.
APAC
The price of 2-Ethylhexanol (2-EH) increased throughout during the final quarter of 2022 in the Chinese market. The extreme heat wave scenario in China significantly reduced demand for 2-EH, which in turn reduced demand from the downstream construction sector in the nation. The enormous price decline was aided by many Covid-19 related regulations. Due to the increase in the price of upstream propylene at the end of Q3, 2-EH experienced a price increase in the Chinese market during the second half of Q3. At the end of Q4 2022, the cost of 2-EH was estimated to be around USD 1310/MT.
Europe
During the fourth quarter of 2022, 2-Ethylhexanol (2-EH) prices declined in European markets. Easing energy costs in Europe decreased the operation cost for 2-EH, which abetted the price ease in the continent. The weak purchasing attitude in the European region as a result of rising inflation rates contributed to the price fall. The cost of 2-EH further declined in the European region during the fourth quarter of 2022 as a result of poor performance and weak demand from the downstream construction sector. The price of 2-EH in Germany was predicted to be around USD 2495/MT by the end of Q4 2022.
For the Quarter Ending September 2022
North America
The prices of 2-Ethylhexanol (2-EH) in the American market dropped during the first half of the third quarter of 2022. The easing of upstream propane prices due to increased production rates and disrupted export levels owing to the technical difficulties in the freeport exporting facility abetted the price drop during the start of Q3 2022. During the latter half of Q3 2022, the prices witnessed to increase as the demand from the downstream industry raised the price of 2-EH in the US. The price of 2-EH in the American market was recorded at around USD 2622/MT during the end of the third quarter of 2022.
APAC
2-Ethylhexanol (2-EH) prices in the Chinese market dropped during the first half of the third quarter of 2022 and the price drop recorded during the first half of Q3 was drastic. The huge price drop was abetted by various pandemic-related regulations easing the demand for 2-EH, and the severe heat wave scenario in China further eased the demand from the downstream construction sector in the country. 2-EH witnessed a price rise during the second half of Q3 in the Chinese market owing to the rise of the upstream propene cost during the end of Q3. The price of 2-EH was recorded at around USD 1310/MT at the end of Q3 2022.
Europe
The price of 2-Ethylhexanol (2-EH) decreased during the first half of the third quarter of 2022 in the European markets. The high energy costs in Europe significantly reduced demand for 2-EH, which in turn reduced demand from the downstream construction sector in the continent. The price decline was aided by a weak procuring attitude in the European region on the back of rising inflation rates. Due to the increase in the price of upstream propene at the end of Q3, 2-EH experienced a price increase in the European region during the second half of Q3. At the end of Q3 2022, the cost of 2-EH in Germany was estimated to be around USD 3258/MT.
For the Quarter Ending June 2022
North America
Following the previous quarter's trend, the price of 2-Ethylhexanol remained strong in the North American region during Q2 of 2022. At the beginning of the quarter, prices upsurged significantly due to the impact of inflation and suddenly rose prices of feed propylene and upstream Naphtha. After the ease in Crude oil prices, product prices stabilized, and the monthly rose was marginal from the mid-quarter till the end of the period. The demand for 2-Ethylhexanol remained consistent throughout the Q2 from downstream phthalate industries, specifically for the fabrication of EV auto vehicles, and product costs rose quarterly by 10.7% since Q1 of 2022.
Asia
In the Asian region, the 2-Ethylhexanol price moved downward throughout the 2nd quarter and the product cost reduced by 6.4% since Q1 of 2022. In India, prices declined due to the decrease in feed propylene prices caused by the reduction in petrochemicals costs after increased Russian Crude oil imports. On the other side, prices diminished in China due to the build-up of product stock inventories during frequent lockdown and port congestion caused by shortages of containers in the region. However, the product's demand remained steady from downstream plasticizers and paint manufacturers throughout the period, with consistent offtakes from the market.
Europe
During Q2, the price of 2-Ethylhexanol rose substantially by 25.5% since Q1 of 2022. In the H1 of the quarter, prices soared heftily as the upstream Naphtha, and feed propylene prices rose sharply in the region at the beginning of the quarter due to shortages of supplies caused by the war in the East European region. However, the price trend stabilized in the mid-quarter. Because of an escalation in the region's energy and fuel costs, the product costs rose again towards the end of quarter 2. The demand for the product remained firm from the downstream plasticizer manufacturers, with steady offtakes from the market in the quarter.
For the Quarter Ending March 2022
North America
During the first quarter of 2022, the price of 2-Ethylhexanol surged from USD 2170/ton FOB Texas in January 2022 to USD 2250/ton FOB Texas towards the end of the quarter due to strong demand from downstream throughout the quarter, where paints and coating sector flourished contributing to the US economy. Production levels for all oxo alcohols have been ticking upwards, which has normalized the supply fundamentals. The price was stable in Q1 2022 as compared to Q4 of 2021 with a minute declination of 0.3%. Surging export assistance in US and resolutely high shipping and freight charges make the imports implausible to substitute for domestic production. The downstream construction sector remained robust in this quarter which has been the critical factor in increasing prices.
Asia Pacific
In Asia, the price of 2-Ethylhexanol saw a descending trend in China by the quarter ending March 2022. The price slipped to USD 2030/ton Ex Shandong with a decrement of 1% was observed in Q1 as compared to last quarter due to rising pandemic-related restrictions in the country, influenced by China’s zero-tolerance policy. However, in India, the prices for oxo alcohols towards the start of the quarter were observed to be USD 1751.25/ton Ex Mumbai and observed to be surging for the entire quarter. Prices spiked up in February with a monthly increment of 21.8%. The market fundamentals remained persistent for oxo alcohols in Asian markets because of high demand from the downstream sector, including paints and coating, agricultural products, adhesives, and sealants.
Europe
The price of 2-Ethylhexanol in Q1 2022 saw an upward trajectory due to marginally stable offtakes from the domestic market amid rising input costs which were observed to be around USD 2835/ton in the beginning of the quarter. A price change of 6.2% was seen in Germany in the first quarter of 2022, comparable with Q4 of 2021. Across Europe, rising energy costs remained a major issue for producers due to Russia-Ukraine conflict, as their significant production cost grew exponentially, which compelled them to raise their offers. It was putting inflationary pressure on manufacturers and pressured them to revise their spot offers to sustain margin. Contrary to other regions, 2-EH prices rose effectively in the German market and heard hovering around USD 2920/ton – USD 3030/ton FOB Hamburg by the end of this quarter.
For the Quarter Ending December 2021
North America
North American Oxo Alcohol prices witnessed a consistent dullness throughout the final quarter of this year. However, demand fundamentals remained stable to firm in the meantime, taking pressure from high consumption rate from domestic market. Furthermore, plasticizer, which is key driving sector of 2-Ethyl Hexanol showcased bearish sentiments, which also influenced this sharp decline. In addition, previous unforeseen natural events like freezing weather shot up prices of several raw materials including 2-EH in the country, which is now gaining stability. 2- Ethyl Hexanol prices heard hovering around USD 2150/MT FOB during December.
Asia
Dual energy policy-based restrictions forced major plasticizers manufacturers in China to practice production cuts in order to control country’s overall emission. These restrictions were eventually led to a steep decline in production of downstream derivatives despite of stable demand from the domestic market. Indian market witnessed a steep hike in demand for Plasticizers under festivities arrived during November, while limited imports pushed up the price trend of several upstream chemicals including oxo alcohols and its derivatives. Overall demand for DOP and DBP dragged down in China while remained buoyant across other major Asian economies during Q1 2021. 2-EH prices heard hovering around USD 1503/MT CFR during December.
Europe
Marginally stable offtakes from the domestic market amid rising input cost pushed up prices of several commodities in Europe including 2-Ethyl Hexanol. Plasticizer segment remained buoyant during the first half of this quarter, which later declined in effect of declining construction sector. All across Europe, rising energy cost remained a major issue for producers, as their production cost were rising exponentially, which compelled them raise their offers. Conclusively, contrary to other regions, 2-EH prices rose effectively across European market and heard hovering around USD 2770/MT FOB in Germany during December.
For the Quarter Ending September 2021
North America
In the third quarter of 2021, the North American region witnessed high demand for 2-Ethylhexanol propelled by the rising demand from various end-users after the climate calamities disrupted Q1 and Q2 dynamics. In the USA, the chemical sector ramped up their M&A activities in Q3. The prices of 2-EH remained stable to firm from in July due to high raw material pricing and substantially increasing demand from the plasticizer manufacturers. The demand for oxo-alcohols bolstered in North America in Q3 owing to the surging demand for chemicals and solvents across the automotive, paint & coatings, and manufacturing industries. FOB Texas discussions settled at USD 2430 per tonne in September.
Asia Pacific
The market price of 2-EH in the Asia Pacific region witnessed an exponential hike from July to September as many manufacturing units increased their production owing to the surged demand and persistent supply shortage since Q1 and Q2. According to the market experts, 2-Ethylhexanol prices increased by more than 11% within 2 weeks in July. The offers related to 2-EH have risen up to USD 2430 per tonne in China. The lockdown in Indonesia from 3rd to 20th July affected the production of 2 EH at some production facilities including one at Jawa and Bali. Despite the uncertainties caused by the second wave of COVID-19 in India, the prices of 2-Ethyl hexanol stabilized in September due to the presence of ample stocks. In India, the price trend observed a gradual increment as the Ex-Mumbai prices increased from USD 2283 to USD 2457 per MT from July to September. The demand outlook in the China was driven by the increased demand for Polyvinyl Butyral (PVB) film plasticizers from the downstream automotive industry.
Europe
During Q3 2021, the demand outlook of 2-Ethylhexanol in the European region was driven by the increased oxo-alcohol demand from paints and coatings sector due to stringent regulations to reduce the C02 emissions caused by light and heavy-duty vehicles. 2-EH market witnessed a major uptrend in the third quarter, due to outstanding offtakes from the downstream sectors including automotive, paints and coatings, etc. By September, demand-side picked up due to strong pull from the construction sector.
For the Quarter Ending June 2021
North America
Supplies of 2-Ethylhexanol (2-EH) in the North American region improved over the previous quarter after the winter storm Uri disrupted Q1 dynamics. Refinery operating rates were ramped up and the production of oxo-alcohols was bolstered as the several regional facilities resumed production to normalize the supply fundamentals. Due to backlog of orders, OQ chemicals surged the prices of 2-Ethylhexanol by USD 665 per MT at the starting of the quarter. Due to the traditional demand season and pick up in the construction activities, offtakes from the paints and coatings sector showed substantial gains. Pricing trend stabilized after observing m-o-m increment of 33.34% in April. FOB Texas discussions settled at USD 2880 per tonne in June.
Asia Pacific
During the second quarter of 2021, oxo-alcohol supply conditions in the Asia Pacific region improved as several major manufacturing plants ramped up production to cope with the recovering demand and persistent supply shortage since the first half of Q1. However, the market outlook in India remained severely impacted due to the devastating second wave of COVID, as the construction activities in several states were halted and offtakes were restricted by the automotive and plasticizers industry. Indian producers reported strong margins due to slackening import volumes. Pricing trend in India observed a gradual increment in June after observing the constant decline in the second quarter with Ex-Works Mumbai discussions settling at USD 1956 per tonne in June. The demand outlook in China was primarily driven by strengthening constructional activities with economic rebound.
Europe
During Q2 2021, 2-EH supplies in the European region were improved as the region’s largest oxo-alcohol producer Oxea resumed operation at Oberhausen (Germany) plant after temporary closure due to fire breakout. As a ripple effect, the prices of 2-Ethylhexanol (2-EH) prices dropped by USD 24 per tonne to USD 1140 per tonne FD NWE at the starting of the quarter. The demand outlook in the European region showed mixed sentiments as during the start of the quarter, commercial activities were limited due to the pandemic situation. However, with the mass vaccine programme, market sentiments gained pace with the rebound in the construction sector.
For the Quarter Ending March 2021
North America
During the first quarter of 2021, 2-EH supplies were tight in the North American region as various manufacturers in mid-February announced force majeures, due to unprecedented severe freeze weather conditions in Texas and nearby US Gulf region. The demand however stood balanced as consumption from the downstream plasticizer sector was tepid. Prices of almost all oxo-alcohols took a big hit during the quarter due to supply crunch. OQ chemicals surged the prices of 2-Ethyl Hexanol in March by USD 630/ton against the limited availability of feedstock.
Asia-Pacific (APAC)
2-Ethyl Hexanol supplies were tight in the Asia Pacific region, during Q1 2021, due to persistent market tightness due to plant turnarounds heard in China. The global supply shortage and reduction in Propylene supplies dented the supply dynamics. Demand witnessed mixed results in Q1 2021 as offtakes from the downstream Plasticizers sector were balanced. The prices of 2-Ethyl Hexanol in the southeast Asian market in March remained around USD 2090/MT. In March, Ex-factory prices in India gained by over 30% growth on month-on-month basis taking strong cues from the international markets. Even higher crude oil lent strong support to the price curve.
Europe
2-EH supplies were tight in the first quarter of 2021, as several plants were shut down and reduced production rates in the northwest European region amid cold weather. US oxo-alcohol supplies to the region declined by 50% as the bad weather-related disruptions hit the gulf coast. However, demand witnessed a marked uptrend in the first quarter, due to better offtakes from the downstream sectors. As the supply-demand gap widened, there was an abrupt surge in the prices of 2-Ethyl Hexanol during the first quarter.
For the Quarter Ending September 2020
North America
The third quarter showed mixed results in the North American 2-EH market while the players continued to navigate the impact of double whammy due to COVID-19 and Hurricane Laura across major economies. Outlook remained pressured owing to hurt sentiments in the United States while major players like Eastman announced price increase for the 2-EH amid an increase in the upstream Propylene values. Regional demand for the plasticizers picked up from the downstream construction and automobile-manufacturing sectors making 2-EH manufacturers go along with the crests and trough on the path of recovery.
Asia
The Asian 2-Ethylhexanol (2-EH) market moved steadily in Q3 2020 as economies took a road to recovery from the pandemic blows. China and most of the Southeast Asian countries reported a strong price increase buoyed by hike in the feedstock Propylene Oxide as they entered the September month. Chinese players registered incredible gains in the downstream plasticizers demand. However, Chinese 2-EH players are expecting restricted supplies in the October month and further price rise due to scheduled plant turnarounds
Europe
2-EH availability seemed better in Q3 2020 after planned and unplanned production outages in the region in the previous quarter. However, impacted derivative markets are yet to respond to the good news. The European 2-EH players reported better exports, thereby limiting the local availability. Demand outlook is projected to remain quite healthy for the October month from the paints and coatings sector, as well as from the fuel additives as players stand cautious amid uneven economic situation due to rising coronavirus cases.
