Get the latest insights on price movement and trend analysis of Fatty Alcohol Ethoxylate (FAE) in different regions across the world (Asia, Europe, North America, Latin America, and the Middle East & Africa).
Fatty Acid Ethoxylate Price Trend for the First Half of 2023
The Asia-Pacific market remained volatile in terms of the prices of ethoxylate in the first two quarters of 2023. The manufacturing capacities were severely affected due to the Lunar New Year holidays. The labor shortages further led to a downfall in consumer demand. Countries like Indonesia and Malaysia saw great production for feedstock palm oil and changed their export policies, lowering the prices in international markets. With insufficient upstream cost pressure and stagnant demand, the price trends for FAE fell in the region.
The first quarter of 2023 was accompanied by falling natural gas prices and increasing pressure from the rising inflation rates. The rise in inflation and strict monetary policies adopted by the European region decreased the buying appetite of consumers, and as a result, the prices of ethoxylate dipped. The second quarter was also not much different from the first one as the above factors continued to play a major role in influencing the prices. In addition, the demand from surfactant and detergent industries and the shortage of raw materials and labor further aided the downward trajectory of ethoxylate prices.
The price trends for fatty alcohol ethoxylates witnessed an oscillating movement in the US domestic market throughout the first two quarters of 2022. The prices were influenced by the economic slowdown, declining prices of natural gas, and limited inquiries from the downstream industries. The freight charges were also low, and the oversupply of the product aided the decline in the prices. The fall of major banks in the US market caused panic among the buyers, thereby negatively impacting the buyers’ confidence.
According to Procurement Resource, the price trends for Fatty Acid Ethoxylates are estimated to decline in the upcoming months as the inquiries from the downstream industries seem stagnant. The global economic slowdown and hiking interest rates will continue to pressure the market’s pricing fundamentals.
Fatty Alcohol Ethoxylate Price Trend for the Second Half of 2022
In the initial months of the third quarter of 2022, the prices of ethoxylates inclined, especially in China. However, with the surge in covid cases in the latter half of the third quarter and the fourth quarter, the price trends declined. In addition, the Asian economy was headed southwards with the fall in domestic consumption and feedstock market prices. The manufacturing rates in the fourth quarter also declined, and as a result, the supply-chain equilibrium got disrupted, further aiding the downward movement of fatty alcohol ethoxylates prices.
The price trends for FAE registered a fluctuating pattern in the last two quarters of 2022. The prices were majorly affected by low offtakes from the surfactant and detergent industries and also by the rising cost of energy production due to the ongoing conflict between Russia-Ukraine. However, the later months of the fourth quarter were favorable in terms of the ethoxylates prices as the market activities gained momentum and the manufacturing sector returned to its normal pace leading to an increase in the inventory levels, thereby supporting the supply chain.
A mixed trend in the prices of ethoxylate was seen in the North American region as the US economy faced challenges from rising inflation rates and the limited availability of raw materials. The downstream industries, such as detergent and surfactants, also decreased demand, leading to increased inventory levels. However, in the last two months of the fourth quarter, the prices somewhat recovered as the cost of raw materials increased, and the market gradually followed the path of recovery.
According to Procurement Resource, the price trends for Fatty Alcohol Ethoxylates are estimated to be volatile in the coming months. The unsettled demand from the downstream surfactant and detergent industries, coupled with the rising uncertainties in the market dynamics, will likely affect the FAE prices.
Fatty Alcohol Ethoxylate Price Trend For the First Half of 2022
The fatty alcohol ethoxylate prices rose during the first quarter owing to firm demand from the downstream surfactant and cleaning industry. The mismatch in the supply-demand dynamics caused the low stocks to lead to the price increase averaging 2654 USD/MT.
Floods in Malaysia, one of the leading exporters of palm oil (an essential feedstock for FAE), led to considerable uncertainties in the market. These high prices negatively impacted consumer buying patterns, leading to demand destruction. Despite the export ban on palm oil by the Indonesian government in Q2, the price trends for ethoxylates kept steady with no upward movement.
During Q1, the ethoxylate prices kept strong throughout the European domestic market. Given the turbulent geopolitical disturbances, the inflationary pricing amid dwindling inventories caused the prices to rise, averaging 3260 USD/MT. To cushion their profit margins, the manufacturers increased their market quotations. These soaring prices heavily influenced consumer patterns, and the market demand declined. Hence, the prices fell in Q2 owing to weak market sentiments and inflationary pressure.
The US domestic market closely followed the global outlook. The FAE prices inclined during the first quarter amid supply constraints, labour shortages, inflated freight charges and strong demand from the surfactant and cosmetic industry, averaging 2817 USD/MT. However, the pricing patterns declined in Q2 owing to the declining market demand. Hence, the price trends remained bearish in the second quarter.
According to Procurement Resource, the market for fatty acid ethoxylates will undergo significant fluctuations in the upcoming months owing to a wide range of factors. With the current market fundamentals exhibiting a stabilizing trend, the final price will depend on consumer demand, likely to remain low due to the rumoured speculations of a global recession.
Procurement Resource provides latest prices of Fatty Alcohol Ethoxylate. Each price database is tied to a user-friendly graphing tool dating back to 2014, which provides a range of functionalities: configuration of price series over user defined time period; comparison of product movements across countries; customization of price currencies and unit; extraction of price data as excel files to be used offline.
In general, fatty alcohols are ethoxylated to produce Fatty Alcohol Ethoxylates (FAE's), which are a common form of non-ionic surfactant such as octaethylene glycol monododecyl ether. Alcohol ethoxylates are a class of compounds. They are a major part of many industrial practices and the commercial market, as well.
Because of the basic structure of ethoxylated alcohols that pair a hydrophobic portion (water-hating) with a hydrophilic component (water-loving), they are considered a versatile class of compounds, commonly referred to as surfactants. Ethoxylated alcohols can vary widely in their properties and applications depending upon fatty alcohols, which can vary in their structures and lengths.
|Product Name||Fatty Alcohol Ethoxylate|
|Industrial Uses||Detergents, Cosmetics , Textile, Paper, Oil, Cleaning and scouring agent, Wetting agent|
|Supplier Database||BASF SE, India Glycols Limited, The Procter & Gamble Company (P&G Chemicals), The Dow Chemical Company|
|Region/Countries Covered||Asia Pacific: China, India, Indonesia, Pakistan, Bangladesh, Japan, Philippines, Vietnam, Iran, Thailand, South Korea, Iraq, Saudi Arabia, Malaysia, Nepal, Taiwan, Sri Lanka, UAE, Israel, Hongkong, Singapore, Oman, Kuwait, Qatar, Australia, and New Zealand
Europe: Germany, France, United Kingdom, Italy, Spain, Russia, Turkey, Netherlands, Poland, Sweden, Belgium, Austria, Ireland Switzerland, Norway, Denmark, Romania, Finland, Czech Republic, Portugal and Greece
North America: United States and Canada
Latin America: Brazil, Mexico, Argentina, Columbia, Chile, Ecuador, and Peru
Africa: South Africa, Nigeria, Egypt, Algeria, Morocco
|Currency||US$ (Data can also be provided in local currency)|
|Supplier Database Availability||Yes|
|Customization Scope||The report can be customized as per the requirements of the customer|
|Post-Sale Analyst Support||360-degree analyst support after report delivery|
Note: Our supplier search experts can assist your procurement teams in compiling and validating a list of suppliers indicating they have products, services, and capabilities that meet your company's needs.
Industrial ethoxylation is the most common method to produce fatty alcohol ethoxylates (FAE’s) and is commonly performed upon fatty alcohols. FAE’s can be obtained by hydroformylation in the Shell higher Olefin process , or by hydrogenation of fatty acids from seed oils.
This reaction is then proceeded by passing ethylene oxide through alcohol at 180oC, with the catalyst as potassium hydroxide (KOH). This reaction is highly exothermic and requires a careful control.
The displayed pricing data is derived through weighted average purchase price, including contract and spot transactions at the specified locations unless otherwise stated. The information provided comes from the compilation and processing of commercial data officially reported for each nation (i.e. government agencies, external trade bodies, and industry publications).
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