Diethylene Glycol (DEG) prices exhibited a mixed trend in February 2025 across global markets, influenced by supply-demand imbalances. Market participants observed varied price movements as regional factors played a crucial role in determining price trajectories.

In the US market, DEG prices followed an overall upward trend throughout February 2025. The month began on a steady note, but prices rose by 0.92% by February 14, supported by a slight supply tightness. Although manufacturing units resumed smooth operations after outages caused by adverse weather conditions, despite DEG supply constraints persisted. Demand showed signs of improvement, particularly from downstream resin manufacturing industries, with increased stocking activity in the construction sector. However, further supply constraints are anticipated as several manufacturing units may undergo maintenance shutdowns, potentially weighing on market conditions.

In Europe, DEG prices remained largely stable throughout the month, with only marginal fluctuations observed in weekly trends. This stability was attributed to balanced supply and demand dynamics. Early in the month, the downstream market showed a slight uptick in demand due to improving operational conditions. However, overall demand remained steady. The downstream resin sector continued to face uncertainty, largely driven by the struggling construction industry. Persistent inflation, rising material costs, and high interest rates further dampened demand, particularly in the residential sector, limiting the growth potential for DEG consumption.

The MEA region, particularly Saudi Arabia, witnessed steady DEG pricing during the period. This trend was supported by ample inventory levels and declining production costs, as feedstock Ethylene Oxide prices trended downward. Additionally, overseas demand for DEG remained stable, with no significant fluctuations. Given the weak production costs, local suppliers opted to keep prices stable, ensuring market consistency despite external uncertainties.

In the APAC region, DEG prices followed an upward trajectory. After experiencing a slight dip in the early weeks of February, DEG prices began rising again, with a significant surge observed from the week ending February 14. By the week ending February 21, DEG prices had increased by 0.9%. This price improvement was largely driven by post-holiday market recovery, as downstream industries resumed operations and engaged in restocking activities. The downstream resin sector, in particular, demonstrated notable demand improvement, contributing to the strengthening of DEG prices in the region.

Import prices from overseas suppliers also played a role in influencing DEG pricing trends. Ongoing and upcoming plant maintenance activities in China and the Middle East led sellers to adjust their offers upward in anticipation of tighter availability. This supply-side pressure, combined with rising demand, further reinforced the positive pricing trend for DEG in the APAC market.