Stability Persists in European Glycol Ether Market in mid-Q4

The Glycol Ether market in Europe remained stable during November 2024, with the demand and supply dynamics maintaining a balanced equilibrium with no significant fluctuations in pricing.

The orders for Glycol Ether remained moderate from buyers amid low exports and steady consumption rates from the downstream industries. In the cosmetics sector, L'Oréal achieved strong sales growth in Europe during Q3, with a 9.3% like-for-like and 9.9% reported increase. The region outperformed a dynamic market despite the gradual normalization of the value effect. The company exceeded market growth in most countries, particularly in Spain & Portugal, the UK & Ireland, Germany, Austria & Switzerland, as well as several medium-sized nations. All product categories saw double-digit growth, led by haircare and fragrances.

At the same time, Glycol Ether production rates in the country remained intermediate, supported by moderate feedstock availability. The cost support from Glycol Ether key feedstock Ethylene Oxide remained stable in the first half of November amid fluctuations in upstream prices and varying demand from downstream industries. Simultaneously, the Glycol Ether supplies were slightly low to importers because of port congestion. European exports continued to decline in October, though the pace of decline has eased. This trend underscores a widening trade imbalance, with a growing gap between long-term import and export levels.

Additionally, the Euro area manufacturing downturn extended into the fourth quarter, and the Eurozone Manufacturing Purchasing Manager’s Output Index for November 2024 fell again below the October month Index, marking a two-month low. Business activity in the Eurozone slipped back into contraction, the second time in three months this has occurred. Confidence in the output outlook dropped to its lowest level in over a year. Companies struggle to secure new orders, which declined for the sixth consecutive month at a notable pace.

Conclusively, market players did not change their Glycol Ether quotations and Ethylene Glycol Monobutyl Ether (GE) FOB Hamburg prices hovered at USD 1520/MT at the end of the week concluded on 22nd November 2024.

As per the ChemAnalyst assessment, the Glycol Ether market will continue to perform moderately in the second half of Q4 2024. The availability of previous stocks amid increased inventory levels because of port congestion would negatively impact the Glycol Ether prices. Meanwhile, the demand for Glycol Ether is likely to remain stable from the paint manufacturers and the FMCG sector, as consumption typically remains strong during summertime. As a result, market participants may lower their Glycol Ether prices to boost offtake from downstream industries. Additionally, destocking practices by Asian market players towards the end of the year would improve the availability of supplies in the international market.