Decline in Production Supports Downstream, Prices of 2-Ethylhexanol Surge in China

December 05 news

This week, the price of 2-ethylhexanol in China rose significantly.

According to the commodity market analysis system, as of December 5th, the price of 2-ethylhexanol was 7066.67 CNY/ton, a significant increase from the price of 6650 CNY/ton on December 1st, with a price increase of 6.27%. Some companies' 2-ethylhexanol production facilities are under maintenance, leading to a decrease in the operating load of 2-ethylhexanol plants, and the 2-ethylhexanol operating rate has dropped to 70%, resulting in a tightening of 2-ethylhexanol supply. The strong consolidation of propylene prices still provides cost support for 2-ethylhexanol; the substantial increase in plasticizer prices has increased the downstream demand support for 2-ethylhexanol. This week, the reduction in 2-ethylhexanol supply, coupled with increased downstream support, has significantly strengthened the upward momentum of 2-ethylhexanol prices, leading to a substantial increase in 2-ethylhexanol prices.

Chinese isooctanol manufacturers reduce production

This week, the operating rate of 2-ethylhexanol manufacturers in China slightly decreased. The operating rate of 2-ethylhexanol manufacturers in China is 74%, a decline of nearly 10% from the end of November. The weekly production of 2-ethylhexanol in China is 60,000 tons, a decrease of 4,000 tons from last week. With the decrease in 2-ethylhexanol production, the supply of 2-ethylhexanol has reduced, increasing the upward pressure on 2-ethylhexanol prices.

Rising Cost of Propylene Raw Material

According to the commodity market analysis system, as of December 5th, the propylene price was 6188.25 CNY/ton, an increase of 0.53% from the propylene price of 6155.75 CNY/ton on December 1st. This week, the propylene price has been consolidating strongly, with continued support from raw material prices. The cost of isooctanol has risen, leading to increased support for higher isooctanol prices.

Downstream plasticizer DOP prices fluctuated and increased in China.

According to the commodity market analysis system, as of December 5th, the price of DOP was 7209.16 CNY/ton, an increase of 2.12% from the price of 7059.16 CNY/ton on December 1st. The cost of DOP has risen, and the operating load of DOP plasticizer enterprises in China has decreased, with the operating rate dropping to 64%. The production of DOP has declined, and the support for the demand for 2-ethylhexanol has weakened, leading to a weakening in the price support for 2-ethylhexanol.

Future Market Expectations

The analyst specializing in octanol product data believes that, from a cost perspective, the price of raw material propylene remains strongly stable, and there is still upward momentum for iso-octanol. On the supply side, the operating rates of iso-octanol producers have declined, leading to a reduction in iso-octanol supply. On the demand side, DOP producers have slightly reduced their operating rates, resulting in lower DOP output and weaker support for iso-octanol demand. Looking ahead, although cost support for iso-octanol remains, coupled with limited demand support and reduced supply, the downward pressure on iso-octanol prices has eased, while upward support persists. Therefore, we expect iso-octanol prices to stabilize firmly at a strong level in the near term.