For the Quarter Ending September 2024
North America
Throughout Q3 2024, the North American region witnessed a stable pricing environment for Fatty Alcohol, with minimal fluctuations in market prices. The consistency in prices can be attributed to the ongoing queries from downstream personal care industries. The steady market conditions and plentiful supply of upstream palm oil assured adequate supply to fulfil demands from the downstream Personal Care sector. This consistent price trend for fatty alcohol illustrated the industry's balanced supply and demand dynamics.
In the USA, which experienced the most significant price changes within North America, Fatty Alcohol prices remained relatively consistent throughout the third quarter. However, the percentage change from the previous quarter in 2024 was only 1%, indicating a minor fluctuation. The comparison between the first and second half of the quarter showed no significant price variations, further emphasizing the stable pricing environment.
The quarter-ending price of Fatty Alcohol C12-15 DEL Louisiana in the USA stood at USD 1950/MT, underscoring the prevailing stability in the market.
APAC
In Q3 2024, the APAC Region witnessed a significant increase in Fatty Alcohol prices, with China experiencing the most substantial price changes. The market for fatty alcohol was experiencing an upward trend due to several factors. Increased inquiries from the downstream Personal Care business have bolstered market sentiment, while limited finished stocks from exporting countries like Indonesia and Malaysia have contributed to rising demand. Sufficient palm oil availability has supported production. Improved market transactions in the surfactant industry and reduced inflationary pressures in foreign markets have also encouraged increased purchases of fatty alcohols by end-use industries. These factors collectively suggested a positive outlook for fatty alcohol prices. From the previous quarter in 2024, prices surged by 9%, indicating a continuous upward trend. Notably, there was a significant 15.2% price difference between the first and second half of the quarter, emphasizing the dynamic nature of the market. The latest quarter-ending price for Fatty Alcohol C12-14 - CFR Shanghai was recorded at USD 2020/MT, showcasing the persistent upward trajectory. Overall, the pricing environment in China has been positive, driven by increasing demand and adequate supply, leading to a stable and prosperous market outlook.
Europe
Throughout Q3 2024, the Fatty Alcohol market in Europe experienced a period of increasing prices, driven by several key factors. The Personal Care sector downstream has had consistent demand, as evidenced by its moderate levels of inquiries. However, manufacturers have decreased their purchasing efforts in response to the holiday season and scheduled maintenance shutdowns, which have temporarily reduced operating levels. Despite these changes, there was still enough palm oil available to meet the downstream sectors' demands. Considering upstream, the prices of palm oil have been on the higher side leading to higher production costs. In comparison to the previous quarter in 2024, there was a 4% price increment, demonstrating a continued growth trajectory. Notably, within the Netherlands, the market experienced the most significant price changes, with a 2% increase observed in the second half of the quarter compared to the first half. The quarter-ending price of Fatty Alcohol C12-14 FOB Rotterdam in the Netherlands stood at USD 2570/MT, reflecting a positive and increasing pricing environment in the region.
MEA
In Q3 2024, the MEA region experienced a significant uptrend in Fatty Alcohol prices, with Saudi Arabia notably reflecting the highest price changes. Increased demand from the downstream Personal Care industry has boosted market sentiment, while limited finished goods supply from Malaysia and Indonesia has contributed to rising demand. On the upstream side, increasing palm oil prices have pushed up the production costs of fatty alcohol, further contributing to the price hike in the domestic market. These factors were collectively responsible for the surge in Fatty Alcohol prices. Additionally, compared to the previous quarter in 2024, prices surged by 8%, indicating a consistent upward trajectory. Notably, the second half of the quarter saw a 13.4% price increase, emphasizing the strengthening market sentiment. Saudi Arabia, in particular, experienced significant price fluctuations, culminating in the quarter-ending price of USD 2130/MT for Fatty Alcohol C12-14 - CFR Gizan. This price surge underscored the positive pricing environment prevalent in the region, driven by strong demand and limited supplies.
For the Quarter Ending June 2024
North America
In Q2 2024, the pricing landscape for Fatty Alcohol in North America experienced a mixed market, driven by several key factors. In early Q2, There was a rise in demand from downstream personal care industries, boosting overall market sentiment.
As per the market sources, reduced manufacturing activities in the USA have led to limited availability of finished goods to meet demand. Additionally, increasing palm oil prices, a key upstream component, have supported consecutive price rises of Fatty Alcohol. Manufacturers have kept prices high to maintain profit margins, witnessing active downstream demand, bullish upstream prices, and limited stock availability. However, with the progress of the second quarter of 2024, the demand moderated, leading to bearish market sentiments.
In the USA, the most significant price fluctuations were observed. The market dynamics were further influenced by reduced manufacturing activities and adequate inventory levels, as manufacturers operated below full capacity to avoid stockpiling. The Federal Reserve's stringent monetary policies aimed at controlling inflation also played a role, curbing spending and dampening market sentiments for Fatty Alcohol. Concluding the quarter, Fatty Alcohol C12-15 DEL Louisiana prices were settled at USD 1900/MT.
APAC
In Q2 2024, the Fatty Alcohol market in the APAC region experienced a steady increase in pricing dynamics. This uptrend was underpinned by several significant factors, including rising input costs, particularly higher Palm Oil prices, which provided robust cost support. Additionally, increased ocean freight rates, exacerbated by port congestion and logistical challenges, further inflated transportation costs. Furthermore, recovering demand from the downstream surfactant and personal care industries, coupled with stabilizing production operations post-festival periods, contributed to a bullish market sentiment.
Focusing on China, the market saw the most pronounced price changes. The quarter showed a persistent upward trend in Fatty Alcohol prices, driven by moderate yet consistent downstream demand and higher manufacturing costs. The seasonality factor, especially after the Dragon Boat Festival, played a crucial role in shaping market dynamics, with a notable uptick in operations and transactions. Correlating with these trends, prices have surged by 20% compared to the same quarter last year and recorded a 12% increase from the previous quarter in 2024.
The pricing environment in China has been predominantly positive, marked by a consistent increase, with the latest quarter-ending price of Fatty Alcohol C12-14 settling at USD 1690/MT - CFR Shanghai. This sustained rise underscores the robust market fundamentals and the interplay of supply-demand dynamics, positioning China at the forefront of the regional price escalation in Q2 2024.
Europe
In Q2 2024, the Fatty Alcohol market in Europe witnessed an upsurge in prices, driven primarily by escalating production costs and supply-side constraints. In early Q2, The bullish trend in upstream Palm Oil prices compounded manufacturing expenses, necessitating price adjustments by producers to safeguard profitability. Additionally, logistical challenges, such as increased freight charges and container shortages, further strained the supply chain, adding upward pressure on prices. The market also faced diminished operating rates among manufacturing firms due to tepid demand fundamentals, thereby intensifying supply-side concerns.
Germany, in particular, experienced the most pronounced price changes within the European region. The overall trend remained robustly upward, heavily influenced by the combination of higher raw material costs and logistical disruptions. Seasonally, the peak shipping period and adverse weather conditions exacerbated supply chain delays, pushing prices even higher. From the previous quarter in 2024, prices ascended by 20%, indicative of a sustained upward trajectory. Within the quarter, a 6% increase was observed between the first and second halves, underscoring persistent pricing momentum.
Concluding Q2 2024, the price of Fatty Alcohol C12-14 FOB Hamburg in Germany settled at USD 2510 per metric ton, marking a testament to the quarter's increasing pricing environment. The overall sentiment remains bullish, driven by the convergence of rising input costs, logistical challenges, and supply-side constraints, shaping a consistently positive pricing outlook for Fatty Alcohol in the European market.
MEA
In Q2 2024, the Fatty Alcohol market in the MEA region has experienced an upward trend, reflecting a consistent increase in pricing throughout the quarter. The primary factors influencing this rise include active demand from downstream industries, particularly the personal care sector. The availability of upstream raw materials such as Palm Oil has also played a crucial role, with sufficient supply maintaining production levels. Notably, increased palm oil imports to major markets and a subsequent price correction have further fed into the cost structure, pushing Fatty Alcohol prices upwards.
Focusing on Saudi Arabia, the country recorded the highest price changes within the region. The overall trend here has been markedly bullish, driven by a confluence of steady domestic demand and rising international inquiries. Seasonality did not significantly impact the market, as demand remained consistent throughout the quarter. Correlation in price changes was evident with upstream Palm Oil, whose fluctuations directly influenced Fatty Alcohol manufacturing costs. From the previous quarter in 2024, prices increased by 10%, indicating a sustained positive trend.
Concluding the quarter, the price of Fatty Alcohol C12-14 - CFR Gizan in Saudi Arabia settled at USD 1820/MT. This consistent uptrend highlights a positive pricing environment, driven predominantly by enduring demand and strategic supply management. The market sentiment has been overwhelmingly positive, reflecting both external and internal economic factors favorable to sustained growth in Fatty Alcohol prices.
For the Quarter Ending March 2024
North America
In Q1 2024, the prices of Fatty Alcohol in the North America region have experienced a significant increase. This can be attributed to several factors that have influenced market prices. One key factor is the rise in upstream Palm Oil prices, which has led to higher manufacturing costs for Fatty Alcohol. Additionally, there has been an increase in demand from the downstream Personal Care industries, reinforcing the market sentiment.
In the USA specifically, the prices of Fatty Alcohol have seen the maximum price changes. The quarter has demonstrated a positive trend, with prices increasing by 9% compared to the same quarter last year. On a quarterly basis, prices have increased by 11%. When comparing the first and second half of the quarter, prices have shown an increase of 9%. The latest quarter-ending price for Fatty Alcohol C12-15 DEL Louisiana in the USA is USD 1890/MT.
Overall, the pricing environment for Fatty Alcohol in Q1 2024 has been positive, with prices showing a consistent upward trend. The increase in upstream Palm Oil prices and the improving demand from the downstream industries have contributed to the overall price increase.
APAC
The first quarter of 2024 has seen a significant increase in prices for Fatty Alcohol in the APAC region. Several factors have influenced market prices, including the rise in upstream Palm Oil prices, reduced operating rates of manufacturing firms, and increased demand from the downstream Personal Care industries. These factors have contributed to bullish market sentiment, pushing prices higher. In China, the price of Fatty Alcohol has experienced the maximum changes in the APAC region. Overall, there has been a positive trend in prices, with a 5% increase from the same quarter last year and a 22% increase compared to the previous quarter in 2024. The first half of the quarter saw a 7% price increase compared to the second half. In Indonesia and Malaysia, which account for about 85% of global palm oil supply, crude palm oil premiums have risen, leading to negative margins for palm oil refiners. Additionally, Weather concerns and strong downstream demand have also boosted Malaysian palm oil futures. According to the Malaysian Palm Oil Board (MPOB), Malaysia's palm oil stocks at the end of March fell by 10.68% from the previous month to 1.71 million metric tons and palm oil exports ticked up 28.61% to 1.32 million tons. The latest quarter-ending price for Fatty Alcohol C12-14 - CFR Shanghai in China is USD 1580/MT.
Europe
During the first quarter of 2024, the European region faced challenges in the supply of Fatty Alcohol. The reduced production capacities of manufacturing firms resulted in a moderate supply. Demand from the Personal Care industries remained low to moderate, while the surfactant and detergent market showed a steady pace of inquiries. The low production season in key manufacturing nations, Indonesia and Malaysia, led to low supplies of upstream Palm Oil, which caused an increase in prices for Fatty Alcohol manufacturing firms. Additionally, concerns arose about potential production reductions due to the El Niño weather pattern. The recent rally was further driven by production constraints and increased demand compensating for Red Sea shipment delays. Fortunately, no plant shutdowns were reported during this period. Germany, a significant market for Fatty Alcohol, experienced a notable drop in prices due to weak demand from the downstream Personal Care industries. The prices of Fatty Alcohol C12-14 FOB Hamburg in Germany decreased by 3.5% compared to the same quarter of the previous year. Consequently, the quarter ended with a Fatty Alcohol C12-14 FOB Hamburg price of USD 2170/MT in Germany.
MEA
In Q1 2024, the prices of Fatty Alcohol in the Middle East and Africa (MEA) region have experienced an upward trend. Several factors have influenced the market prices during this quarter. Firstly, there has been a notable depletion in Malaysian palm oil stocks in international markets, leading to a significant increase in palm oil prices. This has driven up the manufacturing cost of Fatty Alcohol, prompting manufacturers to keep their prices at high levels. Additionally, there has been an improvement in demand from the downstream Personal Care industries, further supporting the bullish market sentiments. Specifically in Saudi Arabia, the prices of Fatty Alcohol have seen the maximum price changes within the MEA region. The overall trend in Saudi Arabia has been positive, with an 18% increase in prices compared to the previous quarter in 2024. The price change from the same quarter last year was -1%, indicating a slight decline in prices. However, there has been a 6% increase in prices between the first and second half of the quarter. As of the end of the quarter, the price of Fatty Alcohol C12-14 - CFR Gizan in Saudi Arabia was recorded at USD 1710 per metric ton. Overall, the pricing environment for Fatty Alcohol in Q1 2024 has been positive, driven by the increase in palm oil prices and the improvement in demand from the downstream industries.
For the Quarter Ending December 2023
North America
In Q4 of 2023, the North American Fatty Alcohol market witnessed a moderate to low demand from the downstream Personal Care industry, leading to a bearish market situation. The manufacturing firms did not operate at their full capacities due to insufficient inquiries from downstream surfactant and detergent industries in the US.
However, in mid-Q4, The prices of Fatty Alcohol in the US were impacted by several factors, including dropping inflationary pressure, limited stocks, and solid procurement from the terminal market, among others. The inquiries from the Personal Care industry have gradually increased, leading to an upward trend in Fatty Alcohol prices.
Furthermore, In December the market observed mainly small orders, and the rising inventory levels among specific producers have led to another decrease in Fatty Alcohol prices, further impacting the profits of manufacturers. No plant shutdown was reported by market participants during the quarter. The Fatty Alcohol C12-15 DEL Louisiana prices in the US witnessed a 6% increase from the previous quarter, with a 1% price percentage comparison between the first and second half of the quarter. The quarter-ending price of Fatty Alcohol C12-15 DEL Louisiana in the US was USD 1706/MT.
APAC
The APAC region's Fatty Alcohol market experienced a mixed response in Q4 of 2023. The market sentiment was bearish due to low demand from downstream Personal Care industries, leading to moderate demand for Fatty Alcohol. The market remained stable in Malaysia and Thailand, with moderate to high supply. However, India's Fatty Alcohol market was bullish, with high demand during the mid-Q4 amid the festive season. Industrial production in India surged by 11.7% YoY in October 2023, which was the highest growth rate since June of the previous year. However, the stocking season in December has prompted the manufacturers to release the existing inventories at lower prices. The market situation was bearish, with moderate supply and low demand from downstream Personal Care industries. Furthermore, the data from the Malaysian Palm Oil Board has demonstrated that Crude palm oil production in December plunged 13.31% to 1.55 million tons from the prior month, while palm oil exports declined 5.12% to 1.33 million tons, amid a slowdown in demand from the key procuring downstream derivatives industries. Moreover, exports of Malaysian palm oil products for December fell between 2.1% and 9.9% from November, supporting the bearish market sentiments for Fatty Alcohol. The latest price of Fatty Alcohol C12-14 - CFR Shanghai in China in Q4 of 2023 was USD 1340/MT.
Europe
The European Fatty Alcohol market in Q4 2023 witnessed a bearish trend due to various factors. Firstly, there was a decline in demand from the Personal Care industries in the quarter, leading to a slowdown in the overall demand for Fatty Alcohol. Additionally, the operating rates of Fatty Alcohol manufacturing firms did not fully recover, resulting in a moderate to low supply situation. Furthermore, the entire European economy has been battered by persistent inflationary pressures and high interest rates, impacting the purchasing power of the end-use industries on a broad scale. In terms of a specific country, Belgium experienced significant changes in Fatty Alcohol prices. The Fatty Alcohol C16-18 CFR Antwerp prices decreased by 2.5% in December 2023. This decline can be attributed to the moderate supply situation and the slowdown in demand from the Personal Care industries amidst the destocking and holiday season at the year-end. Looking at the price trends, There was a 1% decrease in prices from the previous quarter of 2023. As per the data from ChemAnalyst, the latest price of Fatty Alcohol C16-18 CFR Antwerp in Belgium for Q4 2023 is USD 1990 per metric ton.
MEA
The current quarter of 2023 (Q4) for Fatty Alcohol in the MEA region has been stable with moderate supply to meet the downstream industry demands. The top reasons impacting the market include low demand from the personal care sector, limited trade activities, and a decrease in inflationary pressures. The market players have reported an increment in the upstream Palm Oil supplies amid the slowdown in regional demand and a drop in palm oil prices in the main exporting nations, Indonesia and Malaysia has impacted the market sentiments. The Saudi Riyal to the United States Dollar has been volatile and depreciated in the given timeframe. However, the prices of Fatty Alcohol in Saudi Arabia have shown a positive trend with a 3.1% increment in October. The correlation price percentage in Saudi Arabia for Q4 has been calculated to be 1.1%. The percentage change from the previous quarter has been -2%. The price percentage comparison of the first and second halves of the quarter has been 2%. Therefore, the current quarter has been stable with a bullish trend in Saudi Arabia, and the latest price of Fatty Alcohol C12-14 - CFR Gizan in Saudi Arabia for Q4 is USD1490/MT.
