In March 2025, prices for the Triethylene Glycol (TEG) experienced a varied trend in the global market. United States and European Prices for the TEG rose while Asian market observed a negative trend. Supply conditions, production disruption and the demand dynamics mainly shaped the market conditions.

In the United States market, TEG price experienced a sharp rise in March notably by 6.7%. The rise in prices was mainly supported by the rising demand dynamics and the tight supply conditions despite the weak feedstock cost. The supply for the TEG remained tight as key manufacturers in USA witnessed a maintenance shutdown in March 2025. Among them, Texas based MEGlobal scaled down operation for 12 days while Formosa Plastics Corporation curtailed the operation for 8 days. Additionally, due to the equipment failure, Nan Ya Plastics Corporation declared the force majeure, further impacting operation rates and TEG output.

Consumption from the downstream natural gas dehydration sector increased significantly amid a production uptick following the extreme cold weather conditions experienced in the months of January and February. This condition compelled manufacturers to ramp up the the production while  suppliers and distributors actively procured TEG to restore inventories.

Additionally, consumption from the downstream solvent sector also remained positive, mainly in the paints and coating industry, supported by the improvement in the end-use automotive sector. Sales of light-vehicles remained higher in March 2025 in nearly four years. Consumers rushed for the vehicle purchase before the imposition of the tariff.

The European market mirrored the same trend observed in the US market. In the German market, TEG prices experienced a rise of 4.16% this month. Despite the weak downstream market conditions amidst the sluggish performance in the end use of automotive, construction and Natural Gas industries the prices for the TEG rose during this month. The tight supply for TEG was the major driver. Due to the reduced import from the overseas market mainly from the US and Middle Eastern market amidst the shutdown of the key manufacturing units.

Additionally, Belgium based INEOS Group Limited also adjusted the operation for a week in March due to the maintenance shutdown impacting the local supply in the region, supporting the bullish price trend of TEG.

Contrary, In the Asian-Pacific region, TEG price trend saw a negative price trend. In China, TEG prices witnessed a drop of 2.7%. Despite the positive demand for the TEG from the downstream paints and coating and plasticizers industry, it couldn’t support the prices due to the oversupply conditions. Previously buying sentiments remained high and users stocked cargoes ahead of peak turnaround season. A large number of the TEG units in Saudi Arabia, USA and China were planning to take their lines offline for maintenance.