For the Quarter Ending September 2024
North America
In the third quarter of 2024, the North American market experienced a notable surge in prices for 2-Ethylhexanoic Acid (2-EHA), particularly in the USA, where price fluctuations were most pronounced. This increase can be attributed to several key factors impacting market dynamics, including elevated import costs and reported material shortages.
In July 2024, a significant rise in freight charges was recorded, contributing to the increased expense of imports. Although freight rates began to decline in the latter half of August, persistent port congestion in the global market continued to prolong supply times, further exacerbating the material shortages within the market.
During this period, demand remained somewhat subdued, particularly from the prominent automotive sector, which typically drives consumption of 2-EHA. As the quarter came to a close, the price of 2-Ethylhexanoic Acid stood at USD 3,102 per metric tonne (MT) on a cost and freight (CFR) basis in New York. This pricing underscores a stable yet upward trend in the regional market, reflecting ongoing supply challenges and fluctuating demand dynamics.
Asia
In the third quarter of 2024, the Asian market for 2-Ethylhexanoic Acid (2-EHA) experienced a decline in prices, with China, Japan, and Malaysia being the most affected regions. This downward trend can be primarily attributed to an oversupply of 2-EHA in the Asian market. Key manufacturers, including BASF in Malaysia and KH Neochem in Japan, reported stable manufacturing operations, contributing to a well-supplied market. Compounding the situation, the automotive sector—one of the principal end-users of 2-EHA—exhibited moderately low performance during this period. Additionally, port congestion significantly impacted logistics, leading to increased inventory levels across the region. This accumulation of stock, in conjunction with the weakened demand, resulted in a narrowed disparity between supply and demand, further exacerbating the price decline. The combination of these factors created a challenging environment for 2-EHA pricing, reinforcing the downward trend observed throughout the quarter. As a result, the market is positioned to monitor any shifts in supply dynamics or demand recovery, which could influence future price movements in the Asian 2-EHA landscape. As per ChemAnalyst, the latest quarter ending price of 2-EHA (( FOB Tokyo) Japan) , 2-EHA (( FOB Qingdao) China), 2-EHA (( FOB Tanjung Pelepas) Malaysia), were hovering at USD 1580/MT, USD 1657/MT and 1560/MT.
Europe
In the third quarter of 2024, the European market for 2-Ethylhexanoic Acid (2-EHA) experienced a notable decline in prices, driven by several key factors. A primary contributor to this downward trend was the subdued demand from the automotive sector, which is a significant consumer of 2-EHA. The automotive industry faced challenges marked by sluggish sales and increasing competition from Chinese electric vehicles, resulting in a diminished need for 2-EHA in manufacturing processes. Additionally, prices of essential feedstocks, such as Propylene, did not provide the necessary support to reverse the overall market trend. Germany, in particular, experienced the most significant price fluctuations, reflecting the difficult outlook for traditional automotive manufacturers in the region. Throughout the quarter, the market observed a 5% decrease in prices compared to the same period in the previous year, alongside a 1% decline from the prior quarter in 2024. Notably, the price changes between the first and second halves of the quarter also reflected a decrease of 1%. By the end of the quarter, the price of 2-Ethylhexanoic Acid reached USD 2,637 per metric tonne (MT) on a free on board (FOB) basis in Hamburg, underscoring the prevailing negative sentiment in the pricing environment.
South America
The third quarter of 2024 marked a significant period of price increases for 2-Ethylhexanoic Acid (2-EHA) in the South American market, particularly in Brazil, where the most notable changes occurred. Several factors contributed to this upward price trend, primarily driven by heightened demand from downstream industries, especially the paints and coatings sector. This sector's robust activity significantly influenced the overall demand for 2-EHA. While the automotive industry exhibited modest performance during this period, it nonetheless contributed to the increased demand for 2-EHA. The stable supply dynamics in the market further reinforced the upward pricing pressure, enabling prices to rise steadily throughout the quarter. The quarter-on-quarter increase of 3% underscores the positive momentum in pricing, reflecting a healthy market environment. By the end of the quarter, the price of 2-Ethylhexanoic Acid reached USD 3,033 per metric tonne (MT) on a free on board (FOB) basis in Manaus, Brazil. This closing price highlights the overall positive pricing environment characterized by consistent price increases, positioning 2-EHA favourably within the South American market.
For the Quarter Ending June 2024
North America
The second quarter of 2024 has witnessed a notable upward trend in the pricing of 2-Ethylhexanoic Acid (2-EHA) within the North American market. This trend has been influenced by several key factors that have collectively shaped the market dynamics. Foremost among these is the strong demand from the automotive sector, particularly in the realm of automotive paints and coatings. The revival of the automotive industry has resulted in increased consumption of 2-EHA, which plays a critical role in automotive coatings. According to insights from various market sources, U.S. auto sales experienced an 11% increase throughout this quarter, driven by robust demand for SUVs, pickup trucks, and hybrid vehicles.
In addition to rising demand, the market has been confronted with supply constraints primarily attributed to logistical challenges and trade uncertainties, which have exacerbated the scarcity of imported materials. These supply chain disruptions, alongside a shortage of truck drivers, have further tightened the market, contributing to upward pressure on prices. Surveys conducted in the industry reported a material shortage within the North American market, compounded by the limited availability of essential raw materials such as Propylene.
Notable market participants, such as OQ Chemicals, are capitalizing on these conditions by increasing the price of 2-EHA. As a leading global entity in oxo products, OQ Chemicals has strategically adjusted their pricing in response to favorable market conditions, thereby reinforcing the upward trajectory of 2-EHA prices in the forthcoming months. The quarter-ending price for 2-EHA CFR New York was reported at USD 2,956 per metric ton, underscoring the positive pricing environment observed during this period.
APAC
During Q2 2024 the Asian 2-EHA market experienced mixed market sentiments with China and Thailand being the most affected areas. The prices surged during the initial two months of the quarter however dipped during the final month 5.1%. This upward trend has been influenced by several key factors that have collectively shaped the market dynamics. Foremost among these is the strong demand from the automotive sector, particularly in the realm of automotive paints and coatings. The revival of the automotive industry has resulted in increased consumption of 2-EHA, which plays a critical role in automotive coatings. Further, Surveys conducted in the industry reported a material shortage within the Asian market, compounded by the limited availability of essential raw materials such as Propylene. Notable market participants, such as OQ Chemicals, are capitalizing on these conditions by increasing the price of 2-EHA. As a leading global entity in oxo products, OQ Chemicals has strategically adjusted their pricing in response to favorable market conditions, thereby reinforcing the upward trajectory of 2-EHA prices in the forthcoming months. However, prices dipped during June owing to subdued demand from the downstream industry. The number of new vehicles sold dropped to 41,587 units in June 2024, compared to 42,379 units in the same month of the previous year, as per the registration data compiled by Taiwan’s Ministry of Transportation. The quarter-ending price for 2-EHA CFR Kaohsiung was reported at USD 1612 per metric ton, underscoring the positive pricing environment observed during this period.
Europe
In the second quarter of 2024, the European market for 2-Ethylhexanoic Acid (2-EHA) experienced a significant increase in prices due to several key factors. A primary driver was robust demand from the automotive sector, which relies heavily on 2-EHA for paints and coatings. According to the European Automobile Manufacturers Association (ACEA), new car sales in the European Union saw a 13.7% year-on-year increase in April, marking the largest rise since October. This growth was propelled by strong performances in major markets, including Spain, Germany, France, and Italy. In May 2024, Germany alone registered 236,425 new cars, with petrol-powered vehicles accounting for 38% of the market and increasing by 2.1%. This surge in automotive sales has directly influenced the demand for 2-EHA, a crucial component in manufacturing automotive paints and coatings. Additionally, the demand resurgence was further bolstered by increased industrial activity across Europe, alongside supply constraints caused by raw material shortages, especially Propylene. Production disruptions due to labor shortages and logistical challenges further contributed to the price increase. Notable market participants, such as OQ Chemicals, have capitalized on these conditions by raising the price of 2-EHA. As a leading global entity in oxo products, OQ Chemicals strategically adjusted their pricing to reinforce the upward price trajectory. The pricing environment in Belgium remained positive, with a quarter-ending price of USD 2,922 per metric ton FOB Antwerp, indicating a strong market outlook supported by resilient demand and constrained supply.
South America
In the second quarter of 2024, the South American region experienced a significant increase in 2-Ethylhexanoic Acid (2-EHA) prices, with Brazil serving as a central point for notable price fluctuations. This upward trend was driven by several key factors that influenced market dynamics during this period. Robust demand from various industries, particularly the automotive and construction sectors, played a crucial role in driving price increases. The strong performance of these sectors, along with supply chain disruptions and logistical challenges, created a scenario where demand exceeded supply, leading to heightened price pressure. The Brazilian new car market demonstrated significant growth, with a year-on-year increase of 10.2% in May, totaling 183,214 sales. Fiat emerged as a standout performer in Brazil, surpassing the overall growth rate with a 12.3% increase in sales. Fiat's market share in Brazil (21.1%) significantly exceeded its share in Italy (9.3%), highlighting its strong presence and popularity in the Brazilian automotive landscape. This strong performance of automotive brands reflects the overall vibrancy of the Brazilian market and its positive impact on the demand for 2-EHA, which is a key component in automotive paints and coatings. Furthermore, industry surveys reported a material shortage in the global market, exacerbated by limited availability of essential raw materials such as Propylene. Notable market participants, including OQ Chemicals, have capitalized on these conditions by increasing the price of 2-EHA. As a leading global entity in oxo products, OQ Chemicals has strategically adjusted their pricing in response to favorable market conditions, thereby reinforcing the upward trajectory of 2-EHA prices in the coming months. The pricing environment in Brazil remained positive, with a quarter-ending price of USD 2,917 per metric ton FOB Manaus.
For the Quarter Ending March 2024
North America
The first quarter of 2024 has proven to be favourable for the pricing of 2-Ethylhexanoic Acid (2-EHA) in the North American region, marked by an overall increase in prices. Several significant factors have contributed to this upward trend.
Strong demand from the downstream automotive and construction sectors has been a key driver, leading to heightened prices. Particularly noteworthy is the surge in construction activity, notably in the USA, fuelled by increased renovations and a shortage of existing houses, which has driven up demand for 2-EHA in paints and coatings.
Moreover, the automotive industry has displayed signs of recovery, with the growing sales of electric vehicles further bolstering demand for 2-EHA. Market data indicates that new vehicle sales exceeded 1.2 million in February, representing a 6.3% year-over-year increase and a 12.4% month-over-month increase. The latest quarter-ending price for 2-EHA CFR New York in the USA stands at USD 2875 per metric ton, reflecting the prevailing upward sentiment in the pricing environment for 2-EHA in the North American region during the first quarter of 2024.
APAC
The first quarter of 2024 has been positive for 2-Ethylhexanoic Acid (2-EHA) prices in the APAC region, with an overall increasing trend. Several factors have influenced market prices during this period. The demand for 2-EHA has remained stable, particularly from the downstream automotive and construction sectors. The supply of 2-EHA has been moderate, with no significant disruptions reported. Additionally, the prices of essential feedstocks such as propylene and crude oil have increased, leading to higher production costs and energy expenditures. This has exerted upward pressure on 2-EHA prices. Overall, the market sentiment has been positive, with prices showing an upward trend throughout the quarter. In Japan, the market has seen the maximum price changes, with an overall increasing trend. The price of 2-EHA in Japan has seen a decrease of 15% compared to the same quarter last year. However, there has been a significant increase of 16% from the previous quarter in 2024. The price comparison between the first and second half of the quarter shows a rise of 9%. The latest quarter-ending price of 2-EHA in Japan is USD 1560/MT ex-works Yokkaichi. The pricing environment in Japan has been positive, with prices consistently increasing during the quarter.
Europe
In Q1 2024, the European market for 2-Ethylhexanoic Acid (2-EHA) witnessed a positive pricing environment. The market experienced an upward trend, driven by factors such as increased demand from the downstream automotive and construction sectors. This surge in demand can be attributed to economic improvements and the revival of these key industries, particularly in Germany. The automotive sector, in particular, played a significant role in driving up prices, given its substantial consumption of 2-EHA. Additionally, the construction sector also contributed to the rise in prices. Throughout the quarter, the overall trading environment in Europe remained healthy, supporting the upward trend in 2-EHA prices. OQ Chemical, a global leader in oxo products, adjusted their prices in response to the favourable market conditions, further boosting prices in the German market. Belgium, in particular, witnessed the maximum price changes in the European 2-EHA market during this quarter. The market experienced a bullish trend, with prices increasing steadily. This can be attributed to factors such as increased demand from the downstream automotive and construction sectors and the announcement of price adjustments by key industry players. Overall, the pricing environment for 2-EHA in Europe during Q1 2024 can be described as positive, with prices showing a consistent upward trend. The latest quarter-ending price for 2-Ethylhexanoic Acid FOB Antwerp in Belgium was recorded at USD 2788/MT.
South America
Throughout the first quarter of 2024, the South American market for 2-Ethylhexanoic Acid (2-EHA) witnessed positive market sentiments. The market experienced an upward trajectory, driven by factors such as heightened demand from the downstream automotive and construction sectors. This increase in demand can be attributed to economic improvements and the resurgence of these key industries. Notably, the automotive sector played a significant role in driving up prices, given its substantial consumption of 2-EHA. Additionally, the construction sector contributed to the price surge. Throughout the quarter, the trading environment in Europe remained robust, further supporting the upward trend in 2-EHA prices. OQ Chemical, a prominent global player in oxo products, responded to the favorable market conditions by adjusting their prices, thereby further bolstering prices in the Brazilian market. Insights from various market participants indicate that vehicle registrations in Q1 2024 surged by 13.9% compared to the same period in 2023, with March witnessing a 12.4% increase over February 2024. The latest quarter-ending price for 2-Ethylhexanoic Acid FOB Manaus in Brazil was recorded at USD 2827 per metric ton.
For the Quarter Ending December 2023
North America
The current quarter (Q4) of 2023 for 2-Ethylhexanoic Acid (2-EHA) in North America was characterized by a bullish market sentiment. The top three factors that affected the market were consistently rising raw material prices, high demand from the automotive industry, and tight supply.
The price surge in the USA, the country with the most significant price changes, was due to strong demand from the downstream automotive and construction sectors and a price increase announcement by a global leader in oxo intermediates and derivatives. As per the data, in October 2023, new car registrations increased by 4.8% to 217,904, marking the eighth consecutive month of growth. This positive momentum translated into an increased demand for 2-EHA, particularly in USA. Following that, the downstream construction sector not only in Germany and Brazil but also in the exporting nation including the USA has begun to perform well. All these together created a healthy trading environment for 2-EHA to fit in.
Moreover, to witness the classic surge, OQ chemical, one of the global leaders in oxo products adjusted their prices for 2-EHA in Europe, USA, and Brazil effective from November 1st, 2023, which further supported the uptrend. Additionally, ongoing geopolitical tensions in the Red Sea region, a lack of clarity regarding the pricing outcomes of the OPEC+ supply cuts, and uncertainties surrounding the global macroeconomic outlook have collectively influenced market sentiments. In the USA market, there has been a build-up of inventories in the region, driven by increasing supply pressure.
APAC
The 2-Ethylhexanoic Acid (2-EHA) market in the Asia-Pacific (APAC) region fluctuated throughout Q4 2023. The supply and demand dynamics in the Malaysian and Taiwanese markets favoured stability, while Japan witnessed a marginal fluctuation in prices due to cautious stagnation. The top three factors that impacted the market were the bearish trend in the spot market, moderate supply, and low demand. The pricing dynamics of the essential feedstock, propylene, exerted some restraint on the upward movement of 2-EHA prices. The shutdown of the upstream propylene plant by Tosoh Corp in Yokkaichi, Japan, also affected the market. Additionally, ongoing geopolitical tensions in the Red Sea region, a lack of clarity regarding the pricing outcomes of the OPEC+ supply cuts, and uncertainties surrounding the global macroeconomic outlook have collectively influenced market sentiments. In the Japanese market, there has been a build-up of inventories in the region, driven by increasing supply pressure. Despite a considerable weakening in demand, downstream customers remain committed to making purchases to meet their immediate requirements. Meanwhile, reports indicate that Middle Eastern suppliers have raised their import offers to the region, contributing to an overall uptick in prices.
South America
The South American 2-Ethylhexanoic Acid market witnessed bullish sentiments throughout Q4 ending in December 2023. This upward trajectory was attributed to a potent blend of global market dynamics and fierce competition within the Brazilian market itself. While the automotive sector, a major consumer of 2-EHA derivatives, grapples with low sales, the global market has been on a different path. The announcement of a price hike by OQ Chemical, a leading Oxo-intermediate producer, sent ripples through the global market, impacting Europe and the USA. To align with this global trend and maintain market competitiveness, Brazilian traders followed suit, adjusting their prices upwards. As per the data, in October 2023, new car registrations increased by 4.8% to 217,904, marking the eighth consecutive month of growth. This positive momentum translated into an increased demand for 2-EHA, particularly in USA and Brazil. Additionally, attacks in the Red Sea, a major trade route, further intensified the situation, driving ocean freight rates to higher levels. In response to the recent attack, Maersk announced the rerouting of vessels away from Red Sea routes, opting for navigation around Africa's Cape of Good Hope, significantly increasing tonne-miles. These developments resulted in a multifaceted challenge for global trade, leading to costlier exports from overseas.
Europe
In the initial month of Q4 2023, the European 2-Ethylhexanoic Acid (2-EHA) market witnessed a downturn marked by bearish sentiments. Despite a moderate supply of 2-EHA meeting demand in both domestic and international markets, the overall demand was subdued. This decline was chiefly attributed to a reduction in electric vehicle sales in the European downstream automobile industry, resulting from the discontinuation of government subsidies for electric cars during this period. However, as November unfolded, the European 2-EHA market experienced a notable price surge. Market reports indicated that in November, 64.9% of all new car registrations, as confirmed by the Kraftfahrt-Bundesamt, highlighted the resilience and growth potential of the car market. The price hike for 2-EHA in Germany took effect on November 1st, 2023, following a global leader in oxo intermediates and derivatives announcing a price increase of approximately +100 USD/MT for its 2-EHA product in Europe. This upward trend in November was primarily attributed to heightened raw material costs and robust demand in the automotive downstream sector. OQ Chemical's earlier price adjustment set the stage for subsequent increases by smaller traders, contributing to the overall positive momentum of 2-EHA throughout the quarter.
