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ChinaLooking ahead to the fourth quarter of 2024 and beyond, there will have been cautious optimism for a recovery in Fatty Alcohol Ethoxylates (FAEs) production as logistical issues are resolved and market conditions stabilize. However, the market will have been expected to remain volatile through 2030, influenced by factors such as raw material availability, regulatory changes, and the growing consumer demand for sustainable, bio-based, and eco-friendly products.
By the third quarter of 2024, prices have remained stable at USD 1,600 to USD 1,700 per metric ton, supported by steady demand from the personal care and biofuel sectors. The demand for bio-based FAEs has stayed strong, with manufacturers increasingly using renewable feedstocks like palm and coconut oil to meet sustainability requirements.
As we had moved into Q2 2024, the FAE market had shown signs of stabilization as production issues had eased and demand had remained strong. Consumption had increased by 4% by May 2024, reflecting continued growth, particularly in the bio-based FAE segment, driven by strong demand from the personal care, cleaning, and agrochemical sectors. Although challenges like raw material price volatility and logistical disruptions had persisted, the overall market demand had remained stable, and production had gradually improved, easing some of the pressures on supply.
In the first quarter of 2024, prices for Fatty Alcohol Ethoxylates (FAEs) had ranged between USD 1,600 to USD 1,700 per metric ton, driven by strong demand from industries such as personal care, cleaning, and agrochemicals. The demand for bio-based FAEs had continued to grow, fueled by a rising consumer preference for eco-friendly and sustainable products. However, the market had faced challenges with raw material cost volatility, particularly for fatty alcohols, which had seen prices fluctuating due to agricultural commodity price shifts. Despite these challenges, supply chains had largely recovered from earlier disruptions, allowing manufacturers to meet demand.
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Molecular Weight[g/mol]
CAS No
HS Code
Molecular Formula
Fatty Alcohol Ethoxylates are non-ionic surfactants produced by reacting fatty alcohols with ethylene oxide. These versatile compounds are widely used in household and industrial cleaners, personal care formulations, and agricultural products due to their emulsifying, wetting, and solubilizing properties. They are known for their mildness, effectiveness in various pH ranges, and biodegradability. Leading manufacturers include BASF, Clariant, and Evonik, with major production hubs in the United States, Germany, and China. The rising global demand for eco-friendly and high-performance surfactants is driving the growth of fatty alcohol ethoxylates, particularly in sustainable cleaning and personal care products, as consumers increasingly prefer formulations that are gentle on both the skin and the environment.
Packaging Type
Grades Covered
Incoterms Used
Synonym
PriceWatch Quotation Terms:
Ex-Location: This incoterm refers to a shipping agreement where the seller makes the goods available at their premises, and the buyer is responsible for all transportation costs, including shipping, insurance, and any other fees.
CIF: CIF refers to the Cost, Insurance, and Freight (CIF) terms for goods. Under CIF terms, the seller is responsible for the cost of goods, insurance, and freight charges until the goods reach the port of destination.
FD: FD stands for Free Delivered where the seller takes full responsibility for delivering goods to the location/port. This ensures the buyer receives the goods at the designated port with all necessary costs, except import duties, covered.
FOB: FOB refers to the Free On-Board shipping term, where the seller is responsible for the cost and risk of delivering the goods to the port. Once the goods are on board the vessel, the responsibility shifts to the buyer for all costs, including shipping and insurance.
| Properties | Specifications |
| Physical form (23 °C) | Liquid |
| Degree of ethoxilation | ca. 8 |
| % Concentration | ca. 100 |
| Method A °C | ca. 56 |
| °C Method B | ca. 43 |
| you °C Method C | ca. 34 |
| °C Method D | ca. 75 |
| °C Method E | ca. 74 |
| g/mol Average molar mass | ca. 860 |
| pH value (EN 1262, solution B)** | ca. 7 |
| g/cm³ Density | ca. 1.00 |
| mPa.s | ca. 120 |
| Hydroxyl number (DIN 53240) mgKOH/g | ca. 95 |
| HLB value | ca. 14 |
| °C | > 180 |
| 2 g Soda ash/l) | ca. 50 |
| 0.5 g/l S | ca. 10 |
| 1 g/l S | ca. 5 |
| Foam volume cm³ | ca. 360 |
| Surface tension mN/m | ca. 27 |
Applications
Fatty Alcohol Ethoxylates (FAEs) are used in personal care products, household cleaning, agriculture, industrial cleaning, textile processing, and oil & gas extraction. They act as surfactants and emulsifiers in food, pharmaceuticals, and biofuels, enhancing product stability and effectiveness.
The price of ethylene plays a crucial role in the cost of fatty alcohol ethoxylates (FAEs) since ethylene oxide is a key raw material used in their production. As ethylene is derived from petroleum and natural gas, its price fluctuations are closely tied to global oil and gas market trends. When the price of ethylene rises, the cost of ethoxylation (a key step in FAE production) also increases, which leads to higher FAE prices. Procurement heads need to monitor ethylene price trends to predict cost increases and adjust purchasing strategies accordingly.
Procurement heads should consider several key factors when forecasting the price of fatty alcohol ethoxylates (FAEs). These include the cost of ethylene, which is affected by global oil prices and natural gas availability; the price of raw materials like fatty alcohols (from palm, coconut oil, or petroleum); geopolitical events affecting the oil and gas markets; demand trends in end-use industries (such as detergents, personal care, and agriculture); and environmental regulations impacting sourcing and production. By understanding these drivers, procurement teams can make informed decisions and hedge against price volatility.
To manage the impact of ethylene price volatility on fatty alcohol ethoxylates (FAEs) procurement, companies can employ several strategies. These include long-term supply contracts with fixed pricing or price caps to lock in rates, diversifying raw material sources to reduce reliance on a single supplier, and using financial hedging tools to protect against price fluctuations. Additionally, staying informed about global ethylene market trends and collaborating with suppliers for insights into future price movements can help procurement heads anticipate cost changes and plan accordingly.
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