Globally, Polytetramethylene Ether Glycol (PTMEG) prices remained stagnant post-Lunar New Year, as weak downstream spandex demand, high inventory levels, and weak feedstock tetrahydrofuran prices kept the market subdued. Buying activity remained slow, with most market players adopting a wait-and-see approach.

In APAC, China's PTMEG supply remained abundant, with ongoing capacity expansions exacerbating supply-side pressure. By 2024, the country’s PTMEG production capacity reached 1.5 million tons per year, with over 2 million tons per year currently under construction, representing more than 60% of global expansion plans. Additionally, bio-based PTMEG, using renewable raw materials, has entered the pilot stage, with some companies planning to achieve mass production by 2025.

Market activity remained sluggish post-Lunar New Year, with many buyers delaying orders. Key spandex-producing regions such as Jiangsu, Zhejiang, and Fujian saw stable but weak transactions, further reflecting the cautious procurement sentiment in the PTMEG market. Several plants, including Shanxi BDO Chemical Co., Ltd., cut operating rates or underwent maintenance, limiting supply but failing to boost prices significantly.

PTMEG demand from the textile and apparel sector remained subdued, with low-cost transactions dominating the market. Spandex manufacturers operated at reduced capacities, citing weak domestic orders and a lack of overseas demand. Additionally, new U.S. tariffs on Chinese textile imports further impacted PTMEG consumption, intensifying market uncertainty.

Meanwhile, South Korean petrochemical producers such as LG Chem and Lotte Chemical faced profitability concerns due to oversupply and sluggish global demand. High production levels in China added further pressure, leaving regional markets struggling with excessive inventory and stagnant prices.

In Germany, PTMEG prices remained stagnant, pressured by weak spandex demand and high inventory levels. The European textile sector showed limited recovery, with slow retail sales and cautious procurement keeping trade volumes weak.

PTMEG producers reduced operating rates to control supply. High energy costs and sluggish EU27 manufacturing output (-2.6% YoY) weighed on sentiment. Recently, Gas prices in Europe were 3.9 times higher than in the U.S., keeping the industry globally uncompetitive.

The U.S. PTMEG market remained sluggish, with low consumer confidence and weak household spending limiting textile and apparel growth. Buyers delayed bulk orders, further restricting demand. The new U.S. tariffs on Chinese textiles increased cost pressures, adding further challenges to domestic spandex producers.

As per ChemAnalyst, PTMEG prices are expected to recover slightly in the coming month, driven by stronger demand from the sportswear and elastic fiber industries. Rising orders from athletic wear producers could support consumption, but high inventories and weak macroeconomic conditions may cap price gains in the near term.