For the Quarter Ending December 2024
North America
The North American Dipropylene Glycol Monomethyl Ether (DPGME) market exhibited an overall upward price trend in Q4 2024, driven by evolving supply and demand dynamics. While the quarter began with subdued prices due to a decline in feedstock costs, including propylene and methanol, the latter half witnessed a notable recovery in prices.
Early-quarter declines were influenced by weak demand from downstream industries such as paints and coatings, which faced challenges from a fluctuating construction sector. High inventory levels, coupled with minimal supply chain disruptions, further exerted downward pressure on prices during this period.
In contrast, the second half of the quarter saw a reversal in price trends, supported by improved demand from the food, cosmetics, and residential housing sectors. Seasonal growth in these industries and festive demand spurred consumption, while supply constraints—caused by maintenance activities and logistical bottlenecks—tightened availability. Additionally, rising operational costs, including elevated energy prices and logistical inefficiencies, prompted producers to adjust pricing strategies.
This combination of recovering industrial demand, constrained supply, and strategic inventory management led to an overall inclining price trend for DPGME in North America during Q4 2024.
APAC
The APAC market for Dipropylene Glycol Monomethyl Ether (DPGME) experienced an overall upward price trend during Q4 2024, driven by dynamic shifts in both supply and demand. Early in the quarter, prices faced pressure from weak demand and high inventories, particularly in China. Economic stimulus measures supported manufacturing growth, but their initial impact was offset by a subdued global economic outlook, slowing downstream demand in sectors like paints, coatings, and chemicals. Furthermore, the depreciation of the yuan against the USD enhanced the competitiveness of Chinese exports but added volatility to pricing patterns.
In the latter half of the quarter, DPGME prices rebounded significantly, fueled by a combination of constrained supply and strengthening demand. Maintenance activities, limited feedstock availability, and higher raw material costs, including propylene derivatives, tightened supply chains. Meanwhile, demand grew in key industries such as coatings, automotive, and construction, with a notable recovery in industrial applications like shipbuilding, furniture manufacturing, and machinery. Strategic stockpiling by downstream buyers amid market uncertainties further elevated prices.
This dual-phase trend highlights the interplay between weak early-quarter performance and late-quarter recovery, leading to a net incline in DPGME prices across the APAC region.
Europe
The European market for Dipropylene Glycol Monomethyl Ether (DPGME) exhibited a mixed price trend in Q4 2024, shaped by varying supply and demand dynamics. Early in the quarter, prices faced downward pressure due to weak demand from key industries like automotive and construction. Economic uncertainties across Europe weighed heavily on industrial activity, with seasonality further dampening consumption in downstream applications such as coatings, inks, and cleaners. Additionally, competitive pressures from alternative solvents contributed to lower prices as buyers sought cost-effective solutions.
However, the latter half of the quarter saw a rebound in DPGME prices. Supply constraints emerged due to production disruptions from maintenance and unplanned shutdowns, coupled with logistical challenges that increased delivery times and costs. Rising raw material costs, particularly for propylene oxide, further tightened the market, pushing prices upward. At the same time, selective recovery in sectors like packaging and specialty chemicals supported a gradual increase in demand.
This dual-phase trajectory of early-quarter declines followed by late-quarter recovery reflects the interplay of economic, seasonal, and supply-driven factors, resulting in an overall mixed trend for DPGME prices in Europe.
For the Quarter Ending September 2024
North America
In Q3 2024, the Dipropylene Glycol Monomethyl Ether market in North America experienced a significant uptrend in prices, particularly in the USA. The price surge was primarily driven by low inventory levels, increased demand from the paints and coatings industry, and cost support from feedstock methanol and propylene oxide.
Additionally, disruptions from plant shutdowns further tightened the supply, leading to bullish market sentiments. The overall market trend showed a positive trajectory, with strong buying interest and a gradual strengthening of prices throughout the quarter. In August, Lyondell Chemical Company implemented a price increase effective September, which had already begun to influence the spot market positively. Moreover, imports from China faced delays due to significant port congestion at key shipping hubs like Shanghai-Ningbo and Port Klang. While wait times began to ease, ongoing delays continued to support elevated spot rates. The situation was exacerbated by a hazardous goods incident in Ningbo, although experts did not anticipate a long-term market impact from this event.
In the USA specifically, the market saw no change in prices in comparison to the previous quarter. The domestic market benefited from improved demand, especially from the construction sector, despite inflation easing and concerns about interest rate cuts. The quarter ended with Dipropylene Glycol Monomethyl Ether priced at USD 1950/MT CFR Los Angeles, reflecting a robust and upward pricing environment.
APAC
In Q3 2024, the APAC region experienced a significant increase in Dipropylene Glycol Monomethyl Ether prices, driven by various factors. The market saw strong demand from downstream industries, particularly in the construction sector, leading to a surge in prices. Additionally, supply constraints and high production costs contributed to the upward trend in pricing. China witnessed the most notable price changes, with a bullish market sentiment prevailing throughout the quarter. Seasonal factors, such as heavy rainfall impacting construction activities, further boosted prices. Di Propylene Glycol Monomethyl Ether prices in the Chinese market experienced a significant upward trend, driven by low inventory levels and improved export demand. Lyondell Chemical Company implemented a price increase effective September, which was already reflected in the spot market. While feedstock prices for propylene oxide and methanol remained low, they had a minimal impact on Di Propylene Glycol Monomethyl Ether pricing. Despite this price strength, domestic demand for Di Propylene Glycol Monomethyl Ether from the downstream paints and coatings industry remained average, largely due to ongoing challenges in the construction sector amid a prolonged real estate crisis. In the China specifically, the market saw the most pronounced price changes, with slight change of 1% in comparison to the previous quarter. Despite these challenges, the market remained resilient, with prices steadily increasing. The quarter-ending price of Dipropylene Glycol Monomethyl Ether FOB Qingdao in China stood at USD 1750/MT, reflecting a 10% increase from the first half of the quarter.
Europe
During Q3 2024, the pricing pattern of Di Propylene Glycol Monomethyl Ether in Europe exhibited mixed trends, influenced by a combination of demand fluctuations and supply challenges. The growth trajectory of the paints and coatings industry, a significant consumer of Di Propylene Glycol Monomethyl Ether, varied across different regions within Europe. In some areas, robust economic indicators fueled demand, while in others, economic fluctuations led to inconsistent consumption patterns. This disparity created a patchwork of demand levels, affecting overall market dynamics. Several supply-side challenges contributed to the mixed pricing trends. Unexpected plant shutdowns and technical difficulties at Di Propylene Glycol Monomethyl Ether production facilities temporarily limited supply in certain regions, driving prices higher. Additionally, fluctuations in the costs of key raw materials propylene oxide and methanol impacted production expenses, which in turn affected pricing. Port congestion emerged as another critical factor. Delays at major European ports hindered the timely import and export of Di Propylene Glycol Monomethyl Ether, complicating the supply chain. This congestion, combined with varying inventory levels held by producers and distributors, resulted in further fluctuations in pricing. Regions with low inventory faced upward price pressure due to limited supply, while those with higher inventory levels experienced downward price adjustments. Overall, the Di Propylene Glycol Monomethyl Ether market in Europe during Q3 2024 was characterized by these mixed trends, driven by regional demand variations, production challenges, and supply chain disruptions. As the market adapted to these dynamics, participants remained cautiously optimistic about future pricing stability.
For the Quarter Ending June 2024
North America
In Q2 2024, the North American market for Dipropylene Glycol Monomethyl Ether (DPM) saw a significant upward trend in prices. This bullish movement was primarily driven by elevated raw material costs, particularly high prices for feedstock propylene oxide and crude oil. Geopolitical tensions and conflicts further disrupted global oil supplies and increased container shipping rates. Adverse weather conditions, including heavy rainfall and flooding in key production regions, exacerbated supply chain issues, causing production facility closures and power outages.
In the USA, robust demand from downstream sectors such as paints, coatings, and adhesives, alongside a surge in vehicle sales and positive market sentiments, bolstered purchasing activities. Significant supply disruptions included maintenance shutdowns at plants operated by Dow Chemical, LyondellBasell, and Enterprise Products Partners in Texas, which compounded the supply crunch and drove prices higher. Seasonal factors, including increased procurement ahead of holidays and heightened construction activities, also amplified demand.
The first half of the quarter saw a gradual price increase, with a sharper rise in the second half, reflecting a 4% increase between the two periods. Compared to the previous quarter, DPM prices rose by 11.5%, but they decreased by 3% compared to the same quarter last year. The quarter ended with prices at USD 1880/MT CFR Los Angeles, highlighting a consistently positive pricing environment driven by strong demand and supply disruptions.
APAC
In Q2 2024, the pricing environment for Dipropylene Glycol Monomethyl Ether (DPM) in the APAC region exhibited a consistent downward trajectory due to several significant factors. High inventory levels, an oversupplied market, and sluggish demand from downstream sectors like paint, coatings, and adhesives were prominent contributors. Seasonal disruptions, including heavy rains and power outages, exacerbated supply chain challenges, leading to a surplus of the chemical. Reduced activity in the downstream construction and automotive sectors, coupled with high production costs driven by elevated crude oil and coal prices, further contributed to the bearish sentiment.
China experienced the most pronounced price changes. Despite moderate demand from the paint and coating sectors, the market was flooded with surplus supplies, causing a significant decline in DPM prices. Seasonal fluctuations, such as the monsoon season, reduced procurement activities in the construction industry, further weakening demand. Several plant shutdowns, including Shandong Tianhong Chemical Co., Dongguan Grand Resource, and Nanjing Chengzhi Clean Energy, impacted overall production capacity.
Compared to the same quarter last year, prices showed a marked decline, with a notable 10% decrease from the previous quarter in 2024. The quarter concluded with DPM prices at USD 1610/MT FOB Qingdao.
Europe
In Q2 2024, the European market for Dipropylene Glycol Monomethyl Ether (DPM) experienced a significant price increase, primarily driven by elevated raw material costs, particularly for feedstock propylene oxide and crude oil. Geopolitical tensions and conflicts, including potential attacks by the Houthi, disrupted global oil supplies and increased container shipping rates. Adverse weather conditions, such as heavy rainfall and flooding in key production regions, exacerbated supply chain issues, leading to production facility closures and power outages.
In Germany, strong demand from downstream sectors such as paints, coatings, and adhesives, alongside a surge in vehicle sales and positive market sentiments, boosted purchasing activities. Significant supply disruptions, including maintenance shutdowns at plants operated by Dow Chemical, LyondellBasell, and Enterprise Products Partners, compounded the supply crunch and drove prices higher.
The first half of the quarter saw a gradual price increase, with a sharper rise in the second half, reflecting a 5% increase between the two periods. Compared to the previous quarter, DPM prices rose significantly, although they decreased compared to the same quarter last year. Overall, the pricing environment in Q2 2024 was notably bullish, driven by strong demand, supply disruptions, and geopolitical influences.
For the Quarter Ending March 2024
North America
In Q1 2024, the pricing environment for Dipropylene Glycol Monomethyl Ether (DPM) in the North America region remained stable. The market experienced a steady upward trend in prices, supported by factors such as the cost dynamics of feedstock propylene oxide and methanol. The stability in prices was also influenced by supply shortages of raw material propylene, which tightened the supply side and stabilized demand.
In the USA, DPM prices witnessed an increase in January, fueled by heightened demand from the downstream construction and electronic industries. Demand for paint and coatings in the construction sector, as well as increased construction activity and job market growth, contributed to the upward pressure on prices. However, in February, prices remained stable due to consistent demand from the construction and automotive sectors. The manufacturing industry in the USA experienced robust growth, leading to a moderate increase in the demand for paint and coatings.
Overall, the pricing trend for DPM in the USA in Q1 2024 was positive, with prices increasing steadily. The percentage change from the same quarter last year was -34%, indicating a significant increase in prices. The latest quarter-ending price for DPM in the USA was USD 1710/MT CFR Los Angeles.
APAC
In Q1 2024, the pricing of Dipropylene Glycol Monomethyl Ether (DPGME) in the APAC region witnessed significant fluctuations. Overall, the market was characterized by a positive sentiment, driven by various factors.
In general, DPGME prices in the APAC region were influenced by stable market fundamentals and sufficient stock availability. The demand for downstream industries such as cleaning products, construction, and automotive remained moderate, contributing to the overall stability of prices. However, fluctuations in feedstock prices, such as propylene oxide and methanol, had an impact on the cost dynamics of DPGME.
China, as a major exporter of DPGME, experienced notable price changes in Q1 2024. The market in China was bullish, with prices consistently increasing. This was primarily due to strong demand from the automobile industry, as well as the paint and coating sector. The surge in demand was supported by China's robust automotive sector performance in 2023, with car production and sales reaching record levels. There was a correlation between the increase in demand and the rise in DPGME prices. Additionally, the supply side faced some challenges, with supply shortages of propylene feedstock due to maintenance activities during the Spring Festival in China. This tightened the supply side and further contributed to the price increase. Overall, the pricing environment for DPGME in the APAC region, particularly in China, was positive in Q1 2024. The latest quarter-ending price for DPGME FOB Qingdao in China was recorded at USD 1550/MT.
Europe
Europe's Dipropylene Glycol Monomethyl Ether (DPM) market saw a positive price trend in Q1 2024, reversing a year-on-year decline. This upswing can be attributed to a new, favorable contract for feedstock propylene oxide. Lower propane and gas prices in January boosted cracker margins, leading to increased PO production. Demand, however, was mixed. While winter conditions in Northern Europe dampened consumption of PO derivatives due to weather and transportation disruptions, Southern Europe, particularly Italy, saw healthy production activity. February witnessed further price increases as winter's grip loosened. Inventory building and higher spot prices emerged, driven by Chinese demand pre-Lunar New Year and ongoing supply constraints in Asia. Additionally, rising demand for DPM from end use industries further catapulted the prices during the quarter in Europe.
