In the first half of the march 2025, prices for the Diethylene Glycol (DEG) exhibited a mixed trend in the global market. Prices for the DEG were mainly influenced by the demand conditions, availability of the materials and the production costs. Volatile crude oil prices also played a crucial role in shaping the market sentiments.

In the US market, prices for DEG witnessed a weak prices trend. In the early week of the month, prices dropped by 2.08% while they remained stable in the second week of the month. Depreciation in the prices was largely due to the high inventory levels and the weak production costs. Feedstock Ethylene Oxide prices dropped by 10.7%, largely due to the declining upstream Ethylene prices. Additionally, subdued demand from the downstream paints and coating sector further pressured the DEG prices. Market insight revealed that the US automotive sales declined in February 2025, reflecting concerns over the potential additional tariff on Mexico and Canada, further weakening the demand. 

The European DEG market followed the same price trend observed in the US market. In Germany, DEG prices dropped by 1.62% during the first 15 days of march. However, the weekly fluctuations in the prices existed caused by the large inventory accumulation, weak production cost and the imports at the weak prices from the overseas market. Prices for the key feedstock, Ethylene Oxide, declined by 7.2% during the period influenced by the weak upstream Ethylene prices and the softening crude oil prices in the global market.

Demand for the DEG further remained lackluster from the downstream solvent and the resin manufacturing industries supported by the weak offtake from the downstream paints and coating industry. A slowdown in the domestic automotive sector further contributed to the diminishing market landscape.

According to the German Federal Land Transport Authority (KBA), new passenger car registrations declined by 6.4% year-on-year in February 2025, with total registrations reaching 203,434 units, showing limited DEG demand from the industrial coatings and resins.

Contrary to the west market, DEG price trend displayed a bullish trend in the APAC market. In China, prices for the improved during the period which is closely tied with the pressure on the existing inventory. A resurgence in the domestic automotive industry provided positive support to the market.

China Association of Automobile Manufacturers (CAAM) highlighted that the China's vehicle sales surged by 34.4% year-on-year to 2.129 million units in February 2025. Sharp rebound from 0.6% decline in the previous month, strengthened consumption of resins, paints and coating, drove the DEG demand.

In the MEA region, prices for the DEG remained up this period. In Saudi Arabia price witnessed a 1.4% appreciation supported by the alteration in the operation in the Ramadan. Though the cost pressure from the feedstock side remained insufficient as Ethylene Oxide price remained unchanged coupled with the stable upstream Ethylene prices.