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.
For the Quarter Ending December 2023
North America
Prices of DPGME observed mixed sentiment in Q4FY23 in the North American region. In October, Dipropylene Glycol Monomethyl Ether (DPGME) prices in the USA saw a significant decline, driven by prices stable feedstock propylene prices. The construction industry faced reduced demand due to higher mortgage rates. Huntsman's reported attributed revenue decline to lower sales volumes and prices, especially in construction-related sectors. Oversupply and low demand led to ample inventories, pressuring dimethyl sulphate prices, while stable feedstock propylene costs mitigated production expenses.
November witnessed a notable increase in DPGME prices in the USA, attributed to high demand from the automobile and paint industries, creating a supply-demand imbalance. Freight charges rose due to Panama Canal disruptions, impacting Asian imports. The surge in DPGME prices was linked to increased spending on home renovations, festive season preparations, and robust demand from the automotive sector. December saw a further increase in USA DPGME prices, influenced by strengthened Asian imports and heightened demand from the paint and coating industry, driven by increased automotive and construction activities.
Despite disruptions in shipping routes and port congestion, the USA construction industry added jobs, reflecting resilience. The surge in DPGME prices was fueled by a supply-demand gap, shipping challenges, and increased demand from construction and automotive sectors. Overall, the three-month period portrayed DPGME market dynamics influenced by fluctuating feedstock prices, demand shifts in construction and automotive sectors, and external factors impacting supply chains and freight costs. As of December, DPGME prices in China were assessed at USD 1640/MT CFR Los Angeles.
APAC
In Q4FY23, Dipropylene Glycol Monomethyl Ether prices in APAC experienced a mixed trend. In October, DPGME prices in China declined due to oversupply and sluggish demand in the construction industry, despite a surge in feedstock propylene prices. Major propylene plants underwent maintenance turnarounds, leading to high inventories and discounted pricing before the shutdowns. The slowdown in downstream construction, evident in reduced land purchases by real estate developers, contributed to decreased demand. Huntsman's Q3 report indicated reduced earnings in the Products division, primarily linked to lower sales volumes and prices, reflecting a broader decline in construction and industrial sectors. In November, the Chinese DPGME market showed resilience amid challenges from weakened feedstock (propylene oxide) and low crude oil prices. Substantial propylene imports supported inventory stability, while a decline in feedstock propylene prices in the USA influenced China's pricing dynamics. Strong demand from importing nations, particularly in the automobile sector, contributed to a surge in DPGME prices. The imbalance between supply and demand, coupled with increased inquiries from overseas markets, drove the upward price trend. In December, Chinese DPGME prices increased, supported by strengthened cost from propylene and heightened demand from the paint and coating sector. Despite the economic downturn, increased orders from the automotive industry led to improved market conditions. China's automotive industry achieved significant growth in 2023, with unprecedented car production and sales. The surge in dimethyl sulphate prices in December was driven by supply-demand imbalances and a decrease in inventory levels. The escalation in feedstock propylene prices also contributed to the upward pressure on DPGME prices, marking a multifaceted market dynamic in the final quarter. As of December, DPGME prices in China were assessed at USD 1510/MT FOB Qingdao.
Europe
Prices of DPGME in the European market observed mixed sentiment in Q4FY23. October saw a notable uptick driven by robust international demand, particularly from the downstream propylene industry, and the electric car revolution in Europe. The surge in downstream propylene products' demand left a lasting impact on the European Propylene market. November maintained a consistent supply with expensive imports sustaining a bullish trend. Steady demand from DPGME and feedstock Propylene industries, coupled with elevated production costs and costly imports, contributed to higher prices. The bullish trend was further fueled by robust demand for feedstock Propylene, emphasizing the influence of the electric car revolution. However, December marked a downturn as lackluster downstream demand and a tepid hoarding sentiment led to a decline in prices. Reduced production costs, linked to lower feedstock propylene and crude oil prices, added downward pressure. Contraction in the manufacturing sector, notably in Austria, Germany, and France, exacerbated challenges, reflecting a decrease in output, new orders, and export sales. Germany's economic struggles had broader implications, intertwining supply, demand, and external economic factors, creating a complex market landscape. The decline in demand, influenced by Germany's economic challenges, contributed to a region-wide price decrease, with the ongoing reduction in Crude Oil value further impacting the supply chain dynamics across Europe. The intricate interplay of supply, demand, and economic factors calls for cautious market navigation in the coming months. As of December, DPGME prices in Germany were assessed at USD 838/MT, CIF Hamburg.
For the Quarter Ending September 2023
North America
Dipropylene Glycol Monomethyl Ether (DPME) prices in the North American region fluctuated during Q3 2023, following a similar trend to prices in other regions around the world. Prices initially declined due to weak demand and moderate supply, but they stabilized and even increased slightly in the later part of the quarter due to increased demand and rising feedstock prices. The supply of raw materials for DPME production, such as propylene and methanol, was moderate during Q3 2023. This helped to keep prices in check. Overall, the price fluctuation of DPME in the North American region during Q3 2023 was relatively modest, with prices initially declining due to weak demand and moderate supply, before stabilizing and increasing slightly in the later part of the quarter due to increased demand and rising feedstock prices. In September 2023, Dipropylene Glycol Monomethyl Ether prices in the US were assessed at USD 1560 per MT CFR Los Angeles.
Asia Pacific
Dipropylene Glycol Monomethyl Ether (DPME) prices in the Asia Pacific region fluctuated during Q3 2023, following a similar trend to prices in other regions around the world. Prices initially declined due to weak demand and moderate supply, but they stabilized and even increased slightly in the later part of the quarter due to increased demand and rising feedstock prices. Demand for DPME from downstream industries such as pharmaceuticals and electronics began to increase in the later part of Q3 2023. This was due to a number of factors, including the start of the peak production season for pharmaceutical products and the release of new electronic devices. The prices of feedstocks for DPME production, such as propylene and methanol, began to rise in the later part of Q3 2023. This increased the cost of production of DPME, which put upward pressure on prices. After the conclusion of Q3 2023, Dipropylene Glycol Monomethyl Ether prices in China were assessed at USD 1380 per MT FOB Qingdao.
Europe
Dipropylene Glycol Monomethyl Ether (DPME) prices in the European region fluctuated during Q3 2023, following a similar trend to prices in other regions around the world. Prices initially declined due to weak demand and moderate supply, but they stabilized and even increased slightly in the later part of the quarter due to increased demand and rising feedstock prices. There was a surplus of DPME inventory in the European market during Q3 2023. This was due to the combination of weak demand and moderate supply. However, the start of the peak production season for pharmaceutical products and the release of new electronic devices in the later part of Q3 2023 helped to boost demand for DPME, which offset some of the downward pressure on prices. In the third quarter of 2023, Dipropylene Glycol Monomethyl Ether prices in Europe decreased by 4%.
For the Quarter Ending June 2023
North America
During June 2023, the DPGME market in the US witnessed a bullish trend, with prices improving sharply due to a significant rise in demand from downstream derivatives and stable cost pressures from the upstream market. The supply of DPGME remained moderate, with domestic production firms resulting in abundant inventory levels in the domestic market and at ports. Additionally, the upstream market remained steady as crude oil prices strengthened in the first week of July 2023, which could have influenced the overall cost pressures in the market. On the demand side, the largest consumption segment, the downstream solvent industry, showed largely stable demand. However, there was an increase in queries from the cosmetic industry, leading to higher demand pressure and consequent price rise. In contrast, DPGME prices in May 2023 experienced a bearish trend, primarily due to ample inventory available in the market and decreasing prices of the available imports reaching the US shores. The imports from Asia and other markets were on the cheaper side, further easing the prices. Freight costs on US routes declined, and the energy market reached normalcy, limiting their impact on final negotiations. After the conclusion of the second quarter, Dipropylene Monomethyl Ether prices in the US were assessed at USD 1985 per MT on CFR basis.
Asia Pacific
During Q2 2023, the DPGME market experienced a bearish trend, with prices sharply decreasing in May 2023. This decline can be attributed to several factors impacting the supply and demand dynamics in the international market. Supply of DPGME during the quarter remained moderate, with stable production rates but weak inquiries from the downstream market. Looking back at April 2023, DPGME prices increased marginally due to stable demand and initial supply constraints from producers during the first half of the month. However, supplies improved in the second half of April due to better operation rates and lower feedstock costs, driven by a decrease in feedstock propylene oxide costs amid shifting crude oil prices. The inventory levels were firm due to consistent production, but the decline in feedstock prices, particularly propylene oxide in the Chinese market, helped ease the overall cost of production for DPGME. On the demand side, the paints & coatings industry exhibited stable demand, with limited new queries in May 2023. Similarly, the consumption rates from the cleaning products industry remained consistent, supported by the stable performance of the construction industry. However, overall demand sentiment in the international market deteriorated during the quarter. Thus, after the conclusion of Q2 2023, Dipropylene Monomethyl Ether prices in China were assessed at USD 1790 per MT on a FOB basis.
Europe
During the second quarter of 2023, the demand for Dipropylene Monomethyl Ether (DPGME) faced significant pressure from downstream solvent industries due to multiple factors impacting the market. High inflation rates, declining demand, and weak cost support from upstream Brent crude oil contributed to the challenging market conditions. With inflation rates rising, industries were facing increased production costs, which led to cautious procurement decisions from the downstream solvent sector. Moreover, declining overall demand in the market further added to the strain on DPGME demand, as end-users were more cautious about their consumption patterns. One of the contributing factors to the overall market situation was weak cost support from upstream Brent crude oil. As crude oil prices remained subdued or volatile during the quarter, it negatively impacted the cost dynamics of DPGME production, limiting the scope for any major price adjustments in the market. Furthermore, the freight market experienced a decline throughout the quarter as trading activities in Europe slowed down. The easing of shipping costs due to reduced trading activities might have provided some relief to market participants, but the overall demand pressure from downstream industries still weighed heavily on the DPGME market. After the June 2023 ending, Dipropylene Monomethyl Ether prices in Europe were assessed at USD 2160 per MT on an FD basis.
For the Quarter Ending March 2023
North America
The Di propylene Glycol Monomethyl Ether price trend remained firm during Q1, 2023, in the North American region. Initially, amid the limited availability of supplies amid moderate production rates in Asia, the quotations were increased by exporters. The price trend persisted in the mid-quarter due to an increase in feedstock prices amid stressed availability due to plant shutdowns. The supply chain activities improved from the mid-quarter, which improved offtakes amid rising inflation and high-interest rates by Federal Reserve. In the final month of Q1, demand-supply dynamics stabilized amid moderate production rates, and the price trend remained stagnant at the end of the quarter.
Asia
The Di propylene Glycol Monomethyl Ether price trend showcased mixed sentiments in the Asian region during Q1 of 2023. At the beginning of the quarter, the price trend prices rose amid moderate demand and an increase in feedstock Propylene prices due to firmness in upstream Naphtha and weak trading activities in the market amid the new year holidays. During the mid-quarter, prices rose in China amid improved consumption with ease in covid restrictions and a rise in feedstock Propylene costs due to stressed availability and volatile upstream crude oil prices amid increased sanctions on Russian products. At the same time, prices fell in India due to depressed orders from downstream industries. In the final month of the quarter, prices rose in the region due to low production rates amid volatile upstream costs and stressed availability of supplies.
Europe
The Di propylene Glycol Monomethyl Ether price trend oscillated in the European region during 1st quarter of 2023. At the beginning of Q1, prices were firm amid stable demand-supply dynamics and reduced run rates. Then, in the mid-quarter, prices rebounded and rose slightly amid the stressed availability of feedstock Propylene supplies after increased sanctions on Russian Petroleum products, which affected the production rates. Then again, the price trend shifted in the final month of the quarter. The price trend showcased a bearish movement due to the surplus availability of supplies and sluggish offtakes. At the same time, the decrease in input costs due to the decline in Natural Gas prices further eased the cost support.
For the Quarter Ending December 2022
North America
The Dipropylene Glycol Monomethyl Ether prices contracted during the final quarter of 2022. Initially, prices decreased marginally amid high inflation and moderate product supplies. At the same time, a significant decrease in the upstream Ethylene Oxide demand after USA’s EPA identified risks from commercial sterilization facilities using Ethylene oxide. It negatively impacted the production costs of Dipropylene Glycol Monomethyl Ether. However, during the mid-quarter, product prices maintained stability due to firm demand and a decrease in production costs due to a reduction in the feedstock Methanol prices. Then in the final month of Q4, Dipropylene Glycol Monomethyl Ether prices declined again because of weak demand and consumption rates and moderate availability of supplies in the market.
Asia
In Asia, Dipropylene Glycol Monomethyl Ether prices decreased throughout quarter IV of 2022. In the first month of the quarter, prices plunged noticeably due to diminished offtakes from paint and daily care product manufacturers. However, during the mid-quarter, Dipropylene Glycol Monomethyl Ether maintained stability. It decreased marginally amid affected feedstock availability and product supplies due to the Truckers strike in South Korea near the Busan port and the supply chain rise in covid cases in China. Towards the end of the quarter, prices plunged again in Asia amid destocking practices by producers and a decline in global freight charges.
Europe
Dipropylene Glycol Monomethyl Ether prices decreased during quarter IV of 2022. During the first month of Q4, product prices were reduced amid the decline in end-user consumption and firm production rates due to the improved availability of feedstock propylene oxide supplies and the consequent reduction in production costs of Dipropylene Glycol Monomethyl Ether. During the mid-quarter, prices decreased again due to weak offtakes by downstream Pharma industries, while production rates were hampered due to the production cut of feedstock and an increase in the input prices. Towards the end of the quarter, prices decreased again due to a reduction in feedstock and input costs amid stable consumer demand for cleaning products during the latter half of the quarter.
For the Quarter Ending September 2022
North America
Dipropylene Glycol Monomethyl Ether prices fluctuated throughout quarter III of 2022 in the North American region. In the H1 of Q3, production costs decreased amid the weak upstream values. Increased feedstock propylene inventory levels and moderate operation rates reduced product prices. However, in the H2 of the quarter, the price trend shifted because of reduced operational rates amid the feedstock outages and stable demand from the domestic downstream industries. At the same time, inflation rose in the region, manufacturing activities reduced, and product inventory levels decreased, raising product prices towards the end of Q3 2022 amid the disrupted supply chain activities.
Asia
A downward price trend of Dipropylene Glycol Monomethyl Ether was seen in the Asian region during Q3 of 2022. Initially, the product prices were stable because of firm production costs and moderate demand from the downstream industries. The price started decreasing in the H2 of the quarter due to reduced offtakes by downstream industries. Major producers in China and Japan cut their operational rates due to heat waves in summer on the Government's instructions. Product inventory levels rose, and at the end of the quarter, Dipropylene Glycol Monomethyl Ether prices in China and India settled at USD 1870/MT and INR 210390/MT, after an average of almost 10% in the previous quarter's prices.
Europe
Dipropylene Glycol Monomethyl Ether shifted in the European region during Q3 of 2022. Initially, the prices decreased on the stable demand and reduced production costs. However, in the second month of the quarter, the trend fluctuated prices inclined upward. At the same time, some of the downstream producers cut their operational rates due to the availability of input supplies from exporters and reduction in water levels like the Rhine in Germany. Additionally, the high inflation depreciated the Euro values against the US Dollar, more significantly towards the end of the quarter, due to which product prices rose during the final month of Q3 amid moderate domestic inventory levels.
For the Quarter Ending June 2022
North America
In North America, the price of DGME showed ups and down in the second quarter of 2022. At the beginning of the quarter, the raw material rose steadily and fell rest of the quarter. DGME fluctuated in the market due to the uncertainty in upstream prices. The volatility in crude oil and naphtha prices affects the region’s petrochemical commodities in the market. Higher freight costs and delayed deliveries impacted the entire value chain. Moderate demand from downstream industries slightly affected the price of Dipropylene Glycol Monomethyl Ether. At the end of the quarter price of upstream propylene oxide increased in the region.
Asia Pacific
In the Asian market, the DGME price has witnessed mixed sentiments throughout the second quarter of 2022. The demand from the downstream industries was weak and more inventories of products curbed the price of DGME in the market. In the Asian market, the upstream raw material propylene oxide costs were reduced due to buying lower rates of crude oil from Russia. The sufficient supply and less demand side further reduced the price. The buying trend from the end-users was weak. The feedstock propylene plummeted from the domestic refineries. The percentage of Dipropylene Glycol Monomethyl Ether was recorded at 0.9% on an Ex-Mumbai basis during the second quarter.
Europe
The DGME prices remained stable throughout the second quarter of 2022. The upstream propylene oxide price rose at the beginning of a quarter, and later it was firm in the market. The crude oil and naphtha prices increased at the initial quarter stage, leading to downstream commodities' prices in the regional market. Poor demand from the downstream industries like paint and coatings restrained the price of DGME. The more supply and ample product availability in the market adjusted the price of DGME. The less buying trend from the end-users curbed the price hike in the European region.
