Asia oxo-alcohols face weak demand; deep-sea cargo influx

SINGAPORE (ICIS)–Oxo-alcohols markets in Asia could see weak downstream demand continuing due to macroeconomic uncertainties, while deep-sea cargoes augment regional supply.

For 2-ethylhexanol (2-EH), the market was hit by year-end inflows of deep-sea cargoes. It remains to be seen if those cargoes will continue to make their way to Asia.

There are recent signs that rebalancing efforts in Asia – via output cuts and plant turnarounds – have resulted in prices bottoming out, but weak demand could still unhinge those efforts.

Spot 2-EH prices on 6 December averaged at $830/tonne CFR (cost and freight) east Asia, down $5/tonne from the week before, according to ICIS data.

The n-butanol (NBA) market was similarly hit by the influx of deep-sea cargoes, while demand from downstream markets is not expected to improve anytime soon.

A producer in northeast Asia is conducting turnaround at its plant, while a separate producer in southeast Asia has been clearing out its inventories.

Asian NBA producers are generally not in a hurry to make offers, opening the door for some deep-sea cargoes to penetrate the market.

Spot NBA prices were assessed unchanged at $685/tonne CFR NE (northeast) Asia in the week ended 6 December, ICIS data showed.

Focus article by Joson Ng

Photo: Yangshan container port in Shanghai, China. (Source: AP/Shutterstock)