Triethylene Glycol (TEG) price expresses a skyrocketing trend in USA since December 2023, primarily driven by the feedstock shortage and Crude oil price upsurge amidst the logistics disruption embracing geopolitical crisis. As per the market sources, TEG price soaring in United states due to the lack of supply, as manufacturing units found shut down during the period owing to the several domestic and global issues.

According to the earlier TEG price record for the US, an increment of around USD 330/MT in TEG price has been observed since December 2023. Meanwhile, key TEG manufacturing companies of the US i.e., Indorama Chemicals at Port Neches and Dow Chemical at Clear Lake remained shut during the January 2024, owing to the freezing cold weather in US resulting in the shortage of Ethylene Oxide (key feedstock for Ethylene Glycol) as well. On the other hand, as per report of Indorama Ventures, Company announced that TEG price will increase by more than +110 USD/MT effectively from February 2024 at Port Neches, Texas and Clear Lake owing to the surge in feedstock prices, energy costs and supply-demand dynamics.

This Escalation in TEG price has been primarily driven by the reduced availability of the primary feedstock i.e. Ethylene Oxide while the demand from domestic downstream industries has been heading upward day by day. The limited inventory and multiple shutdowns by the market player are the key reason for the escalation. On the other side, inflated sea freight charges due to prolonged conflict in the red sea by Houthis rebels of Yemen after the Israel-Palestine war at Gaza strip. Based on the recent reports, Logistics companies have also started adding high insurance cost of up to 20% in the shipment due to the limited container and high-risk factor, ship flow in the ocean and the alteration in trade route by the shipment companies. According to a sea logistic report, global container shipment freight has increased by more than 150% (average) as route is now diverted from Africa, Cape of Good Hope for the Asia, and Europe Sea route transportation, which would lead to addition of energy cost in shipment, resulting competitive loss in export. Adding to the complexity, ongoing consecutive protest in Europe by transport drivers and labor union in demand of reduction in working hours in same pay, has proven a turning point for the US-Europe trade.

Conclusively, as per the analysis, TEG price trend is expected to maintain the same upward trend during coming month by accepting the price alteration by key player and the trouble in shipment. At the same time, crude oil price also fluctuating in global market support the price upgrade of several other commodities including TEG.