For the Quarter Ending September 2024
North America
Throughout Q3 2024, the North American Diethylene Glycol (DEG) market experienced a sharp rise in prices due to several factors. The tight availability of feedstock Ethylene Oxide, coupled with rising upstream Ethylene costs, pushed production expenses higher. This situation was further aggravated by fluctuating crude oil prices, influenced by heightened geopolitical tensions in the Middle East, which contributed to increased market volatility.
Supply disruptions later in the quarter compounded the price hike. Hurricane Francine caused shutdowns at key production facilities, including Dow Chemical Company and Nan Ya Plastics Corporation, significantly curbing output. The constrained supply limited the availability of Diethylene Glycol, adding upward pressure on prices. Additionally, looming fears of a strike by U.S. East and Gulf Coast port workers created uncertainty, threatening to disrupt trade flows and further tighten the market.
In the U.S., Diethylene Glycol prices followed a steady upward trend, reflecting a 4.7% increase from the same period last year. By the close of the quarter, the price reached USD 936/MT CFR Texas, underscoring the market's strong price momentum driven by constrained supply and production challenges.
Europe
Throughout Q3 2024, Diethylene Glycol (DEG) prices in the European region experienced a notable decline, with Germany facing the sharpest price shifts. The downturn in prices was primarily driven by weak downstream demand, particularly in the resin manufacturing sector. The paints and coatings industry also saw reduced activity, alongside subdued performance in the automotive and construction sectors, further limiting the consumption of DEG. Additionally, lower feedstock costs and stable supply levels played a significant role in sustaining this downward pricing trend. The steady availability of DEG in the market, combined with lackluster demand, created an environment of negative market sentiment. As a result, DEG prices fell by 1% compared to the previous quarter, signaling a bearish outlook across the European market. Despite the quarter-on-quarter decline, when compared to the same period last year, DEG prices were up by 1.5%. By the end of the quarter, the price of DEG in Germany stood at USD 1015/MT CFR Hamburg, reflecting a challenging market landscape marked by sluggish demand and low confidence in the broader economy.
APAC
In Q3 2024, the Asia-Pacific (APAC) region saw a continuous decline in Diethylene Glycol (DEG) prices, with China recording the most significant changes. The market was influenced by several factors, including subdued demand from downstream industries and stable feedstock costs, primarily from the ethylene oxide sector. Demand from key sectors like paints, coatings, automotive, and construction remained weak, which further intensified the bearish market sentiment. In the second half of the quarter, DEG prices fell by 2% compared to the first half due to increased supply and weak consumption. Despite these factors, Chinese DEG prices showed resilience, with no significant price shift, maintaining a flat 0% change from the previous quarter. The quarter-ending price for DEG in China stood at USD 791/MT Ex-Guangdong, reflecting the ongoing negative sentiment in the market. Despite global economic challenges and seasonal market fluctuations, the overall market trajectory remained downward, aligning with the broader price trends observed throughout Q3 2024, further exacerbated by the sluggish recovery in key demand sectors.
MEA
Throughout Q3 2024, the Middle East and Africa (MEA) region experienced a significant uptick in Diethylene Glycol (DEG) prices, driven by a confluence of market dynamics and external demand factors. The surge in global demand, particularly from key international markets, exerted upward pressure on pricing structures. This heightened demand was complemented by substantial domestic consumption within the MEA region, especially from the downstream paints and coatings sectors, which benefited from a buoyant construction industry. Saudi Arabia emerged as a focal point for these price adjustments, recording a notable 2% year-over-year increase in DEG prices, while also reflecting a 1% quarter-on-quarter rise. This consistent upward trajectory underscores the region's robust economic activities and enhanced consumption patterns. By the end of the quarter, DEG prices reached USD 718/MT FOB Jeddah, illustrating a sustained positive pricing environment. The interplay of strong domestic consumption and robust global demand signals a resilient market landscape, reinforcing the potential for further price escalations as market conditions evolve.
For the Quarter Ending June 2024
North America
In Q2 2024, the North American Diethylene Glycol (DEG) market experienced a marked downward trend in pricing. Market prices were significantly influenced by several key factors, primarily revolving around decreased demand from the downstream resin manufacturing industry and the sluggish performance of the construction sector. Additionally, elevated freight rates, fluctuating crude oil prices, and high inventory levels all contributed to bearish market sentiment.
In the USA, these factors were particularly pronounced, leading to notable price changes. The quarter observed a consistent decrease in DEG prices, influenced by low demand from downstream industries and an oversupplied market. The construction sector's downturn, compounded by rising mortgage rates and economic challenges, further exacerbated the decline. Seasonal effects were evident as well, with demand typically lower in this period.
From Q1 end to Q2 2024 ending, there was around a 6% decrease in prices, reflecting the ongoing market challenges. The first half of the quarter saw slightly more stability, but prices dropped by 4% in the second half, indicating worsening market conditions. The quarter ended with DEG prices at USD 895/MT CFR Texas, underscoring a consistently negative pricing environment. Overall, Q2 2024 for the North American Diethylene Glycol market was characterized by negative sentiment, driven by comprehensive market pressures and subdued economic activity.
APAC
In Q2 2024, the Diethylene Glycol (DEG) market in the APAC region exhibited notable price increases, driven by several critical factors. Rising production costs, amplified by elevated feedstock Ethylene Oxide prices and heightened downstream demand from the resin manufacturing sectors, marked the quarter. Fluctuations in crude oil prices supported production cost, adding upward pressure on DEG prices. Seasonal factors, such as increased post-spring construction activities, also bolstered demand for downstream products, positively influencing DEG pricing.
In South Korea, the market experienced the most significant price fluctuations within the region. The overall trend was characterized by a steady uptrend in prices, influenced by robust export demand and stable domestic consumption. Seasonal factors, including heightened construction activities in warmer months, further contributed to the price increases. The correlation between rising feedstock costs and increased demand for polyester and polyurethane resins underscored the observed price dynamics.
Compared to the same quarter last year, DEG prices in South Korea surged by 7.5%, reflecting a substantial annual increase. From the previous quarter in 2024, prices rose by 8%, indicating a consistent upward momentum in the market. Additionally, a marginal 1% price difference was noted between the first and second halves of Q2 2024, illustrating the sustained positive sentiment throughout the period. Concluding the quarter, the price of Diethylene Glycol FOB Busan was recorded at USD 677/MT, reinforcing the overall positive pricing environment in South Korea for Q2 2024.
Europe
In Q2 2024, the Diethylene Glycol (DEG) market in Europe exhibited notable fluctuations, driven by fluctuating feedstock prices and seasonal shifts in downstream demand. Fluctuating crude oil prices, low purchasing sentiment, and reduced usage in end industries—affected by rising inflation and higher interest rates—collectively impacted overall market price trends.
Germany, in particular, experienced the most significant price changes within the region. This was mainly due to a combination of logistical issues, localized disruptions, and demand sentiments from the end-use industry. A continuous decrease in feedstock prices, especially Ethylene Oxide, which remained low throughout the quarter despite external pressures, significantly contributed to market softness.
The DEG market in Germany showed a stable price trend compared to the same quarter last year, indicating balanced market sentiments. However, compared to the previous quarter in 2024, prices fell notably by 9%, reflecting a downward market sentiment.
Concluding Q2 2024, the price of Diethylene Glycol in Germany settled at USD 1030/MT CFR Hamburg. This quarter's pricing environment can be described as mixed, with a slight negative decline due to effective supply chain management and restricted demand from downstream industries.
MEA
In Q2 2024, the Diethylene Glycol (DEG) market within the MEA region experienced a notable rise in pricing, driven by a combination of factors. Supply chain disruptions, particularly congestion and equipment shortages at major ports, along with robust demand from downstream industries, exerted upward pressure on DEG prices. Consistent moderate demand from local resin manufacturers and active construction activity sustained this price momentum. Additionally, increasing prices of feedstock and logistical challenges further amplified this trend, reflecting a bullish sentiment in the market.
In Saudi Arabia, the epicenter of this price surge, the market witnessed a substantial rise. The overall trend in Saudi Arabia was characterized by a progressive increase in prices, heavily influenced by the country's proactive engagement in mega infrastructure projects under Vision 2030. Seasonality also played a pivotal role; the post-Ramadan period typically sees a spike in industrial activities, further boosting demand. By the end of Q2 2024, there was a 10% increase compared to the end of Q2 2023, indicating significant year-over-year growth. Compared to the previous quarter, Q2 2024 saw an 8.5% price rise, reaffirming the persistent positive pricing environment.
Concluding Q2 2024, the price of Diethylene Glycol in Saudi Arabia reached USD 710/MT FOB Jeddah. This consistent price increase throughout the quarter signifies a bullish market outlook, driven by intrinsic demand factors and external supply chain disruptions, reflecting an overall positive pricing environment for DEG in the MEA region.
For the Quarter Ending March 2024
North America:
During the initial quarter of 2024, the North American Diethylene Glycol (DEG) market faced challenges that drove prices upwards. A bullish market prevailed due to limited supply caused by the closure of several production plants amid severe cold weather. High demand in the antifreeze sector, driven by freezing temperatures, further fueled price increases. Fluctuations in raw material costs and a strong demand for automobile antifreeze also impacted the market.
Similar factors affected the United States market, where significant price changes occurred. Prices remained stable during the first two months, supported by existing inventory levels meeting downstream demand. However, the final month of the quarter witnessed a surge in prices due to constrained supply exacerbated by disruptions in freight, particularly from the Red Sea incident. Price adjustments by key players, including Indorama Venture, also influenced market trends.
In summary, the DEG market in North America, particularly in the United States, saw price increases during the first quarter of 2024. Factors such as heightened demand from downstream industries, fluctuating raw material costs, and increased freight charges were key drivers. In the US, DEG prices rose by over 14% compared to the same quarter the previous year and by more than 13% compared to the preceding quarter of 2023.
APAC:
The Diethylene Glycol (DEG) market in the APAC region witnessed steady demand during the first quarter of 2024. The market showed signs of recovery after a decline in the previous quarter, as downstream industries began to increase their demand. Although there were some concerns regarding high stock inventories, the market managed to maintain a moderate level of demand. Crude oil prices remained volatile, impacting the prices of DEG and its derivatives. South Korea, one of the key players in the market, experienced stable supply levels, ensuring uninterrupted production activities. However, the product's price was slightly affected by logistics freight charges, resulting in a minor decrease in the latter half of the quarter. Despite this, sellers were able to maintain their profit margins due to the limited availability of materials in the region. The top three factors that influenced the market during the quarter were the recovery in demand from downstream industries, fluctuating crude oil prices, and limited material availability. Fortunately, no plant shutdowns were reported during this period. In terms of trend and seasonality, DEG prices in South Korea remained inclining, with 8% increase compared to the same quarter last year. However, prices showed a slight increase of 12% compared to the previous quarter of 2023.
Europe:
In the initial quarter of 2024, the European Diethylene Glycol (DEG) market saw several factors influencing price dynamics. Plant closures led to limited supply, tightening availability, and pushing prices upwards. Multiple shutdowns across the region exacerbated these constraints. Additionally, ongoing geopolitical tensions in the Red Sea area disrupted global trade routes, driving up freight costs and further impacting DEG prices. In Germany, a key player in the European market, DEG trends were bullish. Increased demand from sectors like polyester and polyurethane collided with challenges stemming from transportation disruptions caused by strikes and adverse weather conditions. These disruptions, coupled with plant closures, contributed to rising freight charges and logistical complexities, further impacting DEG prices in the country. Conclusively, the first quarter's price of DEG CFR Hamburg in Germany stands at USD 1150/MT, marking a significant increase compared to the same period the previous year and signaling positive price momentum. To sum up, during the first quarter of 2024, the DEG market in Europe faced supply limitations, transportation disruptions (including strikes and adverse weather conditions), and fluctuations in feedstock prices. Germany, specifically, felt the effects of these factors, influencing the pricing dynamics of DEG in the region.
MEA:
During the initial quarter of 2024, Diethylene Glycol (DEG) prices in the Saudi Arabian market displayed a mixed trend. This shift in dynamics was driven by tight supply resulting from production unit closures and heightened freight costs, exacerbated by the Red Sea crisis and overseas market demand. Initially, the key player in DEG production, the Eastern Petrochemical Company (SHARQ) units No.1 and No.2 in Al-Jubail, played a crucial role in price increases and disruption of supply-demand dynamics. Concurrently, marine logistics disruptions also contributed to price hikes and supply-demand disturbances, particularly as Saudi Arabia, a major global producer, primarily supplies Asian markets. Fluctuations in global crude oil prices further compelled Saudi Arabia to raise prices for its derivatives, increasing production costs. In the latter half of the quarter, the market remained bearish following the inventory recovery, resulting in ample inventory levels and smooth supply. In summary, the DEG market in the Middle East and Africa (MEA) region encountered challenges of limited supply, fluctuating demand, and plant shutdowns during the first quarter of 2024. These factors continued to impact prices, with noticeable changes observed in Saudi Arabia, where DEG prices increased by over 5% compared to the previous quarter.
For the Quarter Ending December 2023
North America
In the fourth quarter of 2023, the Diethylene Glycol (DEG) market in North America experienced a mix of challenges and opportunities.
The market was primarily affected by disruptions in both supply and demand, leading to fluctuating prices. First, the overall supply of DEG in the region remained low to moderate, with concerns about sluggish growth in production due to a decrease in new orders and subdued export markets. On the demand side, there was moderate to high demand from various industries, including the antifreeze sector, which showed signs of a gradual recovery. However, there was sluggish demand from the downstream polyester resin and plastic sectors. Additionally, the market experienced fluctuations in feedstock prices, which had a cascading effect on DEG prices.
In the USA, the largest market in the region, DEG prices saw a slight increase in October and November, followed by a decrease in December. The price change from the previous quarter was +2.0% in October, +2.3% in November, and -1.8% in December. Overall, the DEG market in North America experienced a dynamic quarter with various factors influencing prices. The latest price of DEG CFR Texas in the USA for the current quarter is USD 765/MT.
APAC
The Diethylene Glycol (DEG) market in the APAC region during Q4 2023 witnessed a mix trend due to firm demand from the domestic market, especially in South Korea, where the FOB Busan price of DEG was recorded at USD 656/MT. The supply of DEG remained low due to reduced availability of products in the global market, heightened feedstock prices, and surplus material availability, leading to a narrowed gap between demand and supply. The downstream industries such as polyurethanes and antifreeze sectors maintained a high demand for the product, while reduced demand from the downstream antifreeze sector remained a primary reason for the decrease in DEG prices. Furthermore, the market achieved a balance due to consistent feedstock supply and uninterrupted production. No plant shutdowns were reported during the quarter. In comparison to the same quarter last year, the price of DEG remained stable with no changes. However, the price of DEG in South Korea increased by 10% in the current quarter compared to the previous one. The price comparison between the first and second half of the quarter showed a decline of 2%. Overall, the bullish trend in the DEG market in the APAC region during Q4 2023 was driven by firm demand, reduced supply, and consistent production.
Europe
In the fourth quarter of 2023, the Diethylene Glycol (DEG) market in Europe experienced a challenging period with several factors impacting prices and market dynamics. Firstly, there was a decrease in demand from the downstream polyester resin and plastic sectors, which exerted downward pressure on DEG prices. This decline in demand was attributed to the weakening fundamentals in these industries and customer uncertainty. Additionally, the antifreeze industries showed signs of a gradual recovery, but the extent of this recovery remained uncertain. Another significant factor was the oversupply condition in the region, as European producers limited supply to align with subdued demand and prevent excess inventories. This oversupply situation led to a competitive market where suppliers resorted to selling inventories at discounted prices. Furthermore, the German market, in particular, experienced a decline in demand due to persistent inflationary pressures, weak microeconomic activities, and a decrease in the Consumer Price Index. Despite these challenges, the quarter ended with a price of USD 875/MT of Diethylene Glycol CFR Hamburg in Germany. This price represents a -10% decrease from the previous quarter and a -30% decrease compared to the same quarter of the previous year.
MEA
In the current quarter of 2023 (Q4), the Diethylene Glycol (DEG) market in the Middle East and Africa region faced several challenges. Firstly, there was a significant decrease in prices, with a percentage change of -4% compared to the previous quarter. This decline can be attributed to weak demand from downstream industries such as polyester resin and plasticizers, as well as the overall economic situation in the region. Additionally, the market experienced a decrease in demand from the antifreeze sector, further contributing to the downward pressure on prices. In Saudi Arabia, the largest producer in the region, the DEG market was particularly affected. The country saw a decline in prices, with a percentage change of -6% compared to the same quarter of the previous year. This can be attributed to the sluggish demand from the polyester resin industry and the cautious outlook of the antifreeze sector. Additionally, the availability of excess inventory in the market and the impact of rising production costs due to higher raw material prices further contributed to the price decline. There were no reported plant shutdowns during this quarter. The latest price of Diethylene Glycol FOB Jeddah in Saudi Arabia for the current quarter is USD 615/MT.
