For the Quarter Ending September 2024
North America
In the third quarter of 2024, the Glycol Ether prices experienced a bullish price movement in the North American region, and prices rose gradually throughout the period, driven by several factors influencing the market dynamics. Factors such as stable demand from key industries like paints and coatings, alongside low to moderate supply levels due to fluctuations in feedstock Ethylene availability. The market dynamics were further impacted by the ongoing concerns about a potential recession in the US, leading to reduced Ethylene supplies and higher production costs for Glycol Ether manufacturers.
In the middle of the third quarter, Glycol Ether production rates were hampered because of the stressed availability of feedstocks in the region. The offtakes were moderate, and market players raised their quotations, culminating in a 6% price difference between the first and second half of the quarter.
Towards the end of Q3, the impact of Hurricane Helene resulted in reduced manufacturing activities in the region and a reduction in domestic stockpiles amid affected supply chain activities. Despite a -5% decrease compared to the same quarter last year, the quarter-on-quarter increase of % signified a positive trend. The latest recorded price of USD 880/MT for Ethylene Glycol Monobutyl Ether FOB Houston in the USA exemplifies the increasing sentiment in the pricing environment.
APAC
In Q3 2024, the Glycol Ether market in the APAC region has been characterized by a fluctuating pricing environment. The quarter has witnessed significant influences from several factors such as increased feedstock Ethylene costs due to fluctuating crude oil prices, moderate demand from downstream industries, and improved manufacturing activities. The market's dynamics were further complicated by supply chain disruptions and geopolitical tensions affecting crude oil imports, leading to variable feedstock availability. During the mid-quarter, the looming concerns about a recession in the US affected the international crude oil market and refinery operation. It stressed the feedstock Ethylene supplies and Glycol Ether production rates. However, towards the end of the quarter, the pricing dynamics shifted, and Glycol Ether prices witnessed a decline due to improved inventory levels in the region. At the same time, the resumption of Crude Oil supply from Libya in September 2024 resulted in increased refinery run rates and feedstock Ethylene availability, which negatively impacted the production costs. The second half of the quarter saw a notable decrease of 1% in prices compared to the first half, signaling a continued negative trend. However, there is no price change from the previous quarter's average prices, indicating a lack of significant fluctuations and the market exhibited a sense of stability. The latest quarter-ending price for Ethylene Glycol Monobutyl Ether (GE) CFR Qingdao in China stood at USD 1540/MT.
Europe
In Q3 2024, the Glycol Ether market in the European region has been characterized by a fluctuating pricing environment. Several factors contributed to this downturn. Firstly, the market faced reduced demand from downstream industries, especially in the construction and paint sectors, leading to sluggish consumption of materials. This drop in demand exerted downward pressure on prices. Additionally, the availability of feedstock Ethylene was relatively stable, impacting the cost support for Glycol Ether production. Furthermore, the overall economic conditions in the region, including a slowdown in the manufacturing sector, influenced market dynamics and pricing. Towards the end of the quarter, Glycol Ether availability improved in the market due to the resumption of manufacturing activities after the regional summer holidays. The quarter saw a 15% decrease compared to the same quarter last year, indicating a notable shift in pricing. Moreover, the quarter-on-quarter recorded a 3% decline and highlighted a continuous downward trend. The comparison between the first and second halves of the quarter showed a 1% decrease, further emphasizing the declining prices. Ultimately, the quarter-ending price for Ethylene Glycol Monobutyl Ether (GE) FOB Hamburg in Germany settled at USD 1580/MT, reflecting the prevailing negative pricing environment.
For the Quarter Ending June 2024
North America
In Q2 2024, Glycol Ether prices in North America remained stable due to balanced supply and demand dynamics. Adequate inventory and moderate supply levels effectively met domestic needs, cushioning the impact of rising feedstock costs, particularly Ethylene Oxide. Improvements in the construction sector, notably in adhesive paints and coatings, did not drive-up Glycol Ether prices, as existing stocks and weak merchant demand kept prices in check.
In the USA, where price fluctuations were most notable, Ethylene Glycol Monobutyl Ether (FOB Houston) ended the quarter at USD 810/MT, unchanged from the first half of the quarter. This stability was reflected in a 5% decrease compared to the same quarter of last year and a 2% decline from the previous quarter in 2024, indicating modest downward pressure.
Overall, the pricing environment for Glycol Ether in North America has been stable, with consistent supply and moderate demand maintaining equilibrium. Despite positive indicators from the construction sector, the ample supply and weak demand prevented significant price increases, resulting in a predictably stable market in Q2 2024.
APAC
In Q2 2024, Glycol Ether prices in the APAC region declined notably due to macroeconomic and sector-specific factors. Lower upstream crude oil prices, influenced by OPEC+'s production decisions and increased inventories, reduced feedstock costs and impacted Glycol Ether production expenses. Moderate demand from industries such as cleaning agents and cosmetics, combined with cautious purchasing behavior, led to an oversupply and further depressed prices. Geopolitical tensions, particularly in the Middle East, added to market volatility and affected buyer and producer confidence. In South Korea, where price changes were most pronounced, the market sentiment remained bearish. A seasonal drop in demand and a stable supply from consistent manufacturing contributed to the price decline. Glycol Ether prices in South Korea fell 6% year-over-year and 4% from the previous quarter in 2024, indicating a persistent downward trend. Within the quarter, prices dropped by 1% from the first to the second half, reflecting ongoing market softness. By the end of the quarter, Ethylene Glycol Monobutyl Ether (GE) FOB-Busan prices were USD 1510/MT. This consistent downward trend highlights a negative pricing environment for Glycol Ether in South Korea throughout Q2 2024, driven by weakened demand, sufficient supply, and reduced upstream cost pressures.
Europe
In Q2 2024, Glycol Ether prices in Europe consistently declined due to several key factors. The primary driver was moderate demand amid ample supply. A significant drop in orders from international importers, especially from Asia, was caused by a downturn in the FMCG sector. Additionally, the European Central Bank’s decision to cut interest rates for the first time since 2019 indirectly reduced consumer spending and industrial investment, contributing to decreased demand for Glycol Ether. Rising inflation in the Euro Area, which hit 2.6% in May 2024, further weakened consumer purchasing power and market sentiment. In Germany, where the most notable price changes occurred, the trend was distinctly negative. Stable yet moderate demand and consistent supply levels pressured producers to lower prices to boost sales. The summer season did not bring the anticipated increase in demand for cleaning agents and personal care products. Prices fell sharply by 23% compared to the same quarter last year and by 13% from the previous quarter in 2024, reflecting ongoing economic challenges. Between the first and second halves of the quarter, prices decreased by 2%, indicating sustained bearish sentiment. By the end of the quarter, Ethylene Glycol Monobutyl Ether (GE) FOB Hamburg prices were USD 1570/MT, confirming the negative pricing environment in Q2 2024.
For the Quarter Ending March 2024
North America
In the first quarter of 2024, Glycol Ether prices demonstrated an upward trend, with an increase from the previous quarter observed in the North American market. At the beginning of the quarter, prices rose as the availability of stocks was moderate to low in the market, and consumption improved after the New Year holidays. Simultaneously, supplies were limited from exporters as high energy costs and limited availability of feedstock Ethylene supplies in the producing country impacted production rates, heightened by the risk of supply chain disruptions amid geopolitical tensions and the Red Sea crisis.
During the mid-quarter, prices surged due to strong demand for Glycol Ether in the international market, driven by increased demand in the Household & Personal Care sector. Meanwhile, production rates were hampered by the sluggish availability of feedstock Ethylene and Propylene supplies, compounded by limited access to upstream Crude Oil in the global market due to OPEC+ production cuts.
Towards the end of the first quarter of 2024, Global air cargo demand saw a consecutive rise, fueled by the growth of the e-commerce sector and disturbances in shipping routes, notably in the Red Sea region, causing fluctuations in air freight rates and supplies to the regional market. Simultaneously, demand was firm for Glycol Ether from cosmetics manufacturers, and exporters raised their quotations.
APAC
The Glycol Ether price trend showcased an upward trajectory in the Asian market during the first quarter of 2024, and prices witnessed an increment of 6% from the previous quarter. Initially, prices surged as the orders remained strong from cleaning agent manufacturers due to increased stocking practices and consumption in the household sector before the celebration of the Lunar New Year in the region. Midway through the quarter, the availability of stocks was inadequate in the market. The Household & Personal Care sector saw a surge in demand amid the Seollal and Lunar New Year festivals in South Korea and China. Simultaneously, the ongoing wedding season and upcoming festivals in significant consumer India kept the appetite high from the consumer end. Towards the quarter's end, regional buyers increased their orders due to steady demand from the household sector amid the observance of various festivals around the arrival of the spring season. Concurrently, product availability was moderately low due to weak production rates. At the same time, global air cargo demand experienced consecutive increases, driven by the expanding e-commerce sector and disruptions in shipping routes, particularly in the Red Sea region, leading to fluctuations in air freight rates and product supplies in the regional market. Consequently, Glycol Ether prices rose in the Asian market.
Europe
The Glycol Ether price trend showcased a bullish movement in the European market, and prices rose by almost 10% from the previous quarter. At the beginning of the quarter, the production rates were affected by high energy costs and weak availability of feedstock Ethylene supplies due to high risks of supply chain disruptions amid the geopolitical tensions and the Red Sea crisis. Simultaneously, orders were consistent from cleaning agent manufacturers due to increased stocking and consumption from the household sector during festivals around spring in the Asian market. During the mid-quarter, prices increased amid robust demand for Glycol Ether in the international market as the Household & Personal Care sector saw a surge in demand from Asian buyers. At the same time, the production rates were affected by the inconsistent availability of feedstock Ethylene and Propylene supplies amid the limited availability of upstream Crude Oil in the global market due to production cuts by OPEC+. Towards the end of the quarter, prices inclined again as regional manufacturing units grappled with disruptions to production schedules due to a shortage of skilled labor. It resulted in diminished output rates and escalated operational costs. Additionally, global air cargo demand experienced its third consecutive monthly increase in March, driven by the expanding e-commerce sector and disruptions in shipping routes, particularly in the Red Sea region, leading to fluctuations in air freight rates. Consequently, Glycol Ether prices inclined again in the EU market.
For the Quarter Ending December 2023
North America
The Glycol Ether price trend fluctuated in North America during the fourth quarter of 2023. Initially, the demand remained low from the domestic downstream industries as the operating rates were moderate in personal care product industries and reduced procurement activities from the buyers as winter approached the Northern Hemisphere.
However, during the mid-quarter, dry weather conditions because of the El Nina effect decreased the Panama Canal water levels and resulted in a decline in Cargo rates. At the same time, the decline in the USA's manufacturing sector's Purchasing Manager's Index indicated a contraction in manufacturing sector activities, leading to low demand for cleaning agents and floor polishes.
Furthermore, the upstream Ethylene availability improved amid a reduction in the upstream Naphtha and Crude Oil prices after the resumed refinery operations and increased refining capacity in the region, and negatively impacted the production costs of Glycol Ether. Towards the end of the quarter, supply rates improved as heavy rainfall in the region increased the water levels of the Panama Canal and shipping activities. On the contrary, the orders were sluggish from the downstream personal care product manufacturers due to depressed demand and reduced trading activities in the region, which decreased the Glycol Ether prices.
Asia
The Glycol Ether prices decreased in the APAC region in the second half of the quarter amid underwhelming demand sentiments from buyers. Initially, the price trend was stable amid moderate demand-supply dynamics. The plant shutdown at Yeochun NCC Co. Ltd Unit 3 in South Korea impacted the feedstock availability and stressed the production rates of the product. At the same time, demand for Glycol Ether remained sluggish from ink manufacturers. Furthermore, the procurement activities remained low from the end-user industries amid a declining trend for end products in the regional market. Meanwhile, the cost support for Glycol Ether from the upstream Ethylene declined during the mid-quarter due to reduced offtakes from Glycol industries, which improved the availability of Ethylene and lowered production costs of Glycol Ether. Additionally, the reduction in upstream Naphtha and Crude Oil prices further contributed to the decrease in production costs. Towards the end of the quarter, the inventory levels rose in the domestic market due to depressed demand from cleaning agents and personal care product manufacturers, which raised the market inventory levels.
Europe
Like the North American region, the Glycol Ether shifted in the European region in the final quarter of 2023. At the beginning of the quarter, prices rose as production rates were affected due to volatility in feedstock Ethylene Oxide prices. Sasol, in Marl, with a feedstock Ethylene Oxide production capacity of 215,000 MTPA, went under maintenance turnaround in Early September till mid-October 2023. It affected the production rates of the product. During the mid-quarter, orders fell noticeably from the cleaning agent and personal care product manufacturers amid reduced buying and procurement activities from end users. Simultaneously, the decrease in feedstock Ethylene offtakes from downstream Glycol industries led to a reduction in the cost support from Ethylene and negatively impacted the production costs of Glycol Ether. Meanwhile, the decline in the Eurozone manufacturing Purchasing Manager's Index throughout the period resulted in a decline in consumption rates from the end-user industries. Again, towards the end of the quarter, the market did not showcase any significant improvement in inquiries amid the ongoing economic slowdown in the region. At the same time, the feedstock Ethylene prices decreased during the month because of increased inventories amid sluggish offtakes from downstream cleaning agent manufacturers.
For the Quarter Ending September 2023
North America
The Glycol Ether prices fluctuated in the North American region during the Q3 of 2023. Initially, quotations decreased by producers due to depressed demand for paint amid weak activities in the construction sector. Simultaneously, logistics duration increased due to affected US shipping and freight routes amid the decline in Mississippi and Ohio river water levels and delayed shipping routes activities through the Panama Canal. However, during the mid-quarter, supply rates remained tight from suppliers due to declined production rates amid affected supplies of upstream Ethylene due to a decline in global inventories of Crude oil. Consequently, product prices are inclined in the regional market. Meanwhile, the hike in bank interest rates by the Federal Reserve Bank to cool down the rising inflation resulted in a decline in demand from buyers, causing a slowdown in the economic growth of the region, and offtakes remained moderate from the Pharma sector. Then, the occurrence of Hurricane Idalia on August 30, 2023, made landfall and caused a hindrance in supply rates, and prices rose again towards the end of the quarter.
Asia
In the Asian region, the Glycol Ether prices switched movement during the 3rd quarter of 2023. Initially, prices declined amid the availability of previous stocks and reduced offtakes for cleaning agents and daily care product manufacturers. Simultaneously, the decrease in energy costs reduced the variable costs of production. During the mid-quarter, prices rose marginally amid moderate demand from cleaning agents and paint manufacturers and disruption in supply chain activities. The occurrence of regional storms and typhoons like Doksuri, Saola, and Khanun and heavy rainfall increased the logistics duration, and supply rates remained inadequate. The operating rates fell due to the weak availability of upstream Ethylene and Propylene supplies amid the stressed availability of upstream Crude Oil due to production cuts by OPEC+ and Russia. Consequently, the product supply rates remained moderate in the market. The product prices rose slightly towards the end of the quarter as procurement activities remained firm from buyers before the arrival of festivals and holidays in the region.
Europe
Like the Asian region, the Glycol Ether prices shifted movement in Europe during the Q3 of 2023. At the beginning of the quarter, prices fell amid surplus availability of stocks due to sluggish consumption rates from the paint manufacturers amid moderate activities in the construction sector. The high energy prices and hike in bank interest rates by European banks resulted in a decline in demand from buyers, causing a slowdown in the Eurozone growth. Consequently, consumption rates remained moderately low from end-user industries during summer holidays in the region. Meanwhile, orders were stable from the Pharma sector. During the mid-quarter, prices inclined marginally amid limited supply rates in the market. The Crude Oil production cuts by OPEC+ and Russia affected the feedstock availability and stressed the production rates. The Glycol Ether prices remained firm during the final month of Q3. Meanwhile, the hike in bank interest rates by the European Central Bank resulted in declined demand from buyers towards the end of the quarter.
For the Quarter Ending June 2023
North America
The Glycol Ether prices show a see-saw trend during the Quarter 2 of 2023. Initially, the price trend was stable, and prices rose due to an increase in production costs amid a rise in the feedstock Ethylene Oxide prices amid volatile upstream prices. The production rates were moderately low due to increased labor costs amid shortages of labor due to the rise in recession in the region. It raised the production costs, and prices increased slightly during the mid-quarter amid stable demand-supply dynamics and moderate availability of supplies. The Glycol Ether orders remained adequate from the Pharma sector. During mid-Q2, the cost pressure decreased from feedstock Ethylene Oxide due to the contraction in upstream prices amid a drop in fuel demand and reduced consumption rates with the temperature rise. Similarly, the increase in the Propane stocks and reduced Propylene Oxide prices reduced the Propylene Glycol Ether prices in the market. Towards the end of the quarter, prices fell amid ample availability of supplies and cautious buying activities by buyers due to a hike in bank interest rates by the Federal Reserve, which decreased the product prices in the market.
Asia
The Glycol Ether price trend oscillated in Asia during Q2 of 2023. Initially, the price movement showcased mixed sentiments in Asia. The product prices decreased in Southeast Asia amid firm availability of supplies and rose in India due to high demand from paint manufacturers. During the mid-quarter, prices rose due to an increase in trading activities in China before the Labour Day holidays. After that, the prices contracted in the market due to an improvement in product availability and dampened offtakes from the paint and coating industries due to decreased consumption rates from the construction sector. Meanwhile, Glycol Ether orders were moderate from the Pharma sector. Towards the end of the quarter, Glycol Ether prices fell due to reduced quotations from European Glycol Ether exporters amid ample availability of supplies and sluggish demand in the European market, especially after the increase in the European bank interest rates. Furthermore, contraction in the feedstock Ethylene Oxide and Propylene Oxide prices reduced the production costs and final product prices in the market.
Europe
In the European region, the Glycol Ether fluctuated during Q2 of 2023, like the North American region. At the beginning of quarter 2, the price trend was stable amid volatile upstream prices and increased feedstock Ethylene Oxide prices. The available inventory levels remained limited till the mid-quarter amid consistent offtakes from the buyers. During the mid-quarter demand-supply dynamics remained stable, and orders remained moderate from the Pharma sector. Meanwhile, the production costs decreased towards the end of Q2 due to the declines in the feedstock Ethylene Oxide prices and the reduction in the upstream Naphtha prices from the mid-quarter. The contraction in the price intensified at the end of quarter 2, amid firm availability of supplies and reduced buying activities from regional and international importers. The hike in bank interest rates by the European Central Bank and the Bank of England to curb rising inflation made domestic buyers conscious while making purchases, and they avoided any unnecessary trading activities. Consequently, the producers revised their quotations negatively to improve the offtakes.
For the Quarter Ending March 2023
North America
In the North American region, the Glycol Ether price trend remained stagnant during the 1st two months of the quarter. Initially price trend was stagnant amid stable demand-supply dynamics. In the mid-quarter, the production rates remained moderate due to affected production rates amid stressed availability of feedstock Ethylene supplies because of plant shutdowns activities during the spring season. Simultaneously, the supply chain activities improved, which raised offtakes amid rising inflation and high-interest rates by Federal Reserve. However, in the final month of Q1, the price trend showcased some improvement, and prices rose marginally amid stable inventory levels and conscious buying activities by downstream processors.
Asia
The Glycol Ether price trend showcased mixed sentiments in the Asian region during Q1 of 2023. In the H1 of the quarter, the prices fell in India amid a reduction in upstream costs and sluggish offtakes from downstream industries. On the contrary, prices remained firm in South Korea due to increased upstream prices due to firm Crude Oil prices by OPEC+. However, the price trend witnessed fluctuations in the final month of Q1. In India, prices rose amid weak production rates and increased quotations by regional suppliers amid firm demand from paint producers. While in South Korea, the prices fell due to depressed orders from downstream paint industries.
Europe
The Glycol Ether price trend showcased bearish sentiments in the European region during 1st quarter of 2023. Initially, prices fell amid stable consumption rates and sufficient availability of supplies amid moderate production rates. While production costs plunged amid reduced costs support due to weak input costs because of continuous fall in the Natural Gas costs throughout the quarter. In the H2 of the quarter, the price trend continued to showcase bearish movement due to an overflow of supplies and sluggish offtakes. At the same time, upstream cost pressure fell due to a slump in feedstock Ethylene costs amid volatile upstream costs.
For the Quarter Ending December 2022
North America
The Glycol Ether prices dropped 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 Glycol Ether. However, during the mid-quarter, product prices maintained stability due to a rise in production costs amid high feedstock Ethylene demand and stability in offtakes from the Pharma sector. Then in the final month of Q4, Glycol Ether prices declined again because of weak demand and consumption rates and moderate availability of supplies in the market.
Asia
In Asia, Glycol Ether prices decreased throughout quarter IV of 2022. In the first month of the quarter, prices plunged noticeably due to diminished offtakes from the Pharma sector due to its excessive use in cough syrups. However, during the mid-quarter, Glycol Ether maintained stability and decreased marginally amid affected feedstock availability and product supplies due to the Truckers strike in South Korea near the Busan port supply chain amid a rise in covid cases in China. Towards the end of the quarter, prices plunged again in Asia amid destocking practices by several market participants and a sharp decline in global freight charges.
Europe
Glycol Ether prices decreased during quarter IV. During the first month of Q4, product prices reduced amid the decline in end-user consumption and firm production rates due to the surplus availability of feedstock Ethylene supplies and the consequent reduction in production costs of Glycol 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 stability in consumer demand for cleaning products during the latter half of the quarter.
For the Quarter Ending September 2022
North America
A decreasing price trend of Glycol Ether was observed in North America during Q3 of 2022. Product prices fell in the country due to moderate demand and offtakes by the downstream solvent producer amid no significant improvement in orders from paint and cosmetic manufacturers. At the same time, during the quarter, production costs decreased due to a reduction in feedstock Ethylene Oxide prices on the back of increased inventory levels after EPA's new guidelines on Ethylene oxide emissions and affected supplies towards the end of the quarter. After witnessing a decrease in the previous quarter's prices, USA's Glycol Ether discussions settled at USD 1900/MT at the end of Q3 of 2022.
Asia
An oscillating price trend of Glycol Ether was seen during the 3rd quarter of 2022 in the Asian region. Initially, the product prices decreased in countries like India and China while the prices inclined upward in South Korea and Japan on the back of mixed demand sentiments from their regional markets. However, from the mid-quarter, prices decreased consistently in Asia due to stale demand and reduced offtakes from solvent producers. At the same time, production costs also decreased due to a reduction in feedstock prices. At the end of Q3, Glycol Ether discussions in South Korea and India settled at USD 2048/MT and USD 1901/MT after witnessing a significant quarterly increase of 7.8% and a decrease of almost 4%, respectively.
Europe
In the European region, the prices of Glycol Ether rose consistently throughout quarter III of 2022 on the back of steady demand from the downstream industries. Decreased availability of feedstock Ethylene Oxide, especially after the revised regulation of EtO by the EU commission, impacted the production rates and increased the production costs. 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 most noticeably at the end of the quarter. After a quarterly increment of almost 21%, Glycol Ether discussions in Germany settled at USD 1915/MT at the end of Q3.
For the Quarter Ending June 2022
North America
In North America, the market sentiments remained upward throughout the second quarter of 2022. The volatility in crude oil and natural gas prices, as a result, increases in downstream industries in the region. The Eastman has increased the price of Glycol Ether in the region, further pressure on the product. Regional capacity for Glycol Ether cannot meet the demand and depend on the import of the product. The cost pressure from the upstream Ethylene Oxide remained high, which strengthened the domestic manufacturers raise the Glycol Ether price in the region. The Ethylene Glycol Monobutyl Ether inclined 4% throughout the quarter and recorded as USD 2534/MT on a FOB Texas basis.
Asia Pacific
In the second quarter of 2022, the market sentiment for Glycol Ether witnessed an upward price trajectory throughout the quarter. The surge in crude oil and natural gas prices internationally affected the local market of the region. The market is driven by increased demand from downstream industries like paints & coatings and soaring infrastructural activities. In the war between Russia and Ukraine, western countries have imposed sanctions on Russia, putting further pressure on the product and disrupting the supply of raw materials. In India, the overall inclination of Glycol Ether is 7%, and the price of Ethylene Glycol Monobutyl Ether was recorded at INR 123030/MT on a CFR JNPT basis during the quarter ending.
Europe
The market sentiment for Glycol Ether in the European region persistently increased throughout the second quarter. The uncertainty in crude oil and supply disruptions in the European region strongly affected the downstream commodities. The cost pressure from ethylene oxide also contributed to the surge in prices of Glycol Ether. The Russian authorities' firm stance on trading the Ruble (Russian currency) has put pressure on supply disruptions to stabilize demand in the local market. Demand from downstream industries further increased the price of Glycol Ether. In Germany, the overall inclination of Glycol Ether is 7%, and the price of Ethylene Glycol Monobutyl Ether was assessed at Euro 2713/MT on a FOB Hamburg basis during the second quarter.
For the Quarter Ending March 2022
North America
The market sentiments remained dull throughout the first quarter of 2022 in the North American region. Such market developments were majorly caused by the international crude oil market fluctuations that kept the gyration on the commodity cycle active and discussions for Glycol Ether sturdy in the US domestic market. The cost support from the feedstocks remained high that strengthened the will of the domestic producers to raise the offered quotations for Glycol Ether in the US domestic market despite the muted demand throughout the quarter. Improved inquiries were observed, as the temperature started to rise and the building and construction activities were ramped up by the quarter ending March 2022. Glycol Ether prices in the USA observed a surge by nearly USD 80/MT in Q1.
Asia Pacific
In the first quarter of 2022, market sentiments in the Asia Pacific region observed mixed opinions for the Glycol Ether. The major setback enforced due to the quiet market movement in China, followed by the resurgence of COVID, suppressed the market sentiments as the domestic PMI index dropped to an all-time low in March. Whereas, in India, the demand paced up by the quarter end as the building and construction activities improved and the inquires from the paints and coating industries increased. Although in mid-quarter, the Indian market was tightly gripped by the wait-and-see sentiments as the rising energy values concerned the domestic players over the uncertainties hovering over the market. As a ripple effect, CFR Mumbai discussions for Ethylene Glycol Monobutyl Ether settled at USD 1326 per tonne in March 2022.
Europe
During the first quarter of 2022, the European market remained impacted by the commodity gyrations in the international market. The geopolitical conflict in the eastern European region added upstream value pressure to the producer's quotations of Glycol Ether in Europe. Whereas during the first half of the quarter, the region witnessed a severe shortage of natural gas, which weighed over the operational rates at the production facilities and impacted the overall PMI of Europe. As a ripple effect, the FOB Hamburg discussions for Glycol Ether soared by 14% throughout the quarter, and several market participants remained buoyed in the upcoming terms.
For the Quarter Ending December 2021
North America
In the fourth quarter of 2021, the Glycol Ether market in the North American region remained consolidated due to the aftermath of Hurricane Ida which disrupts the freight movement after making itself a category 4 hurricane. Its impact prevailed into the fourth quarter kept the production level depressed throughout the first half of the fourth quarter with a dropped of 0.8% on m-o-m in the gulf coast. Whereas the demand outlook witnessed mixed sentiments as the inquiries from the aviation industries soared for antifreeze-related applications and the discovery of the omicron variant of COVID 19 presented new uncertainties in the domestic market. As a ripple effect, Lyondell Basell hiked the offers for all grades of Glycol Ether by USD 44 per tonne, in November.
Asia Pacific
Overall the market sentiments for the Glyco Ether in the Asia Pacific region varies in Northeast Asia and Southeast Asia, although the market remained consolidated throughout the fourth quarter of 2021. The Glycol Ether market in Southeast Asia was majorly impacted by the hiked crude oil offers after the OPEC+ alliance decide to gradually increase the production output of Crude Oil, against the better demand in the international market. Whereas, the power rationing in China soared the offers to an all-time high due to the curtailed operational loads and tightened availability of freight vessels in the Asia Pacific market. As a ripple effect, the offers for Glycol Ether remained buoyed throughout the quarter and the Ex-Mumbai discussion for Polypropylene Glycol Ether was assessed at INR 111360 per tonne, during the quarter ending.
Europe
In the fourth quarter of 2021, the European Glycol Ether market remained consolidated throughout the quarter amidst the ongoing energy crisis in Europe which proportionally weighed on the production cost due to the hike in the charges of electricity. In addition, the demand for upstream from the aviation sector and resurgence of COVID diverted the feedstocks supplies towards antifreeze and sterilization purposes. Therefore, due to the tightened availability against the adequate demand the producer's quotations for Glycol Ether remained buoyed in the European market.
For the Quarter Ending September 2021
North America
In North America, Glycol Ether market experienced an upward trend owing to the constrained supply in the North American region amidst firm offtakes from the downstream buyers during Q3 of 2021. Besides, spike in the values of upstream Ethylene Oxide also supported the pricing trend in the region. In the Gulf Coast of US, many manufacturers were compelled to shut their production plants and petrochemical refineries as a repercussion of the Ida Hurricane which eventually resulted in the scarcity of the feedstock. Besides, Dow and BASF, renowned manufacturers of Ethylene Oxide, imposed a temporary turnaround at their EO production plants in August end which affected the overall availability of its downstream in the region. Hence, a constant increment in the prices of Glycol Ether was observed during this timeframe.
Asia Pacific
In Q3 of 2021, Glycol Ether market in the Asia Pacific region mirrored the market outlook of North America. In Asia, Glycol Ether attained tremendous gains throughout the quarter backed by several factors such as limited supply of the product following the Ida Hurricane in USA and congestion on several ports in China. In India, Glycol Ether prices soared during this quarter backed by the delayed imports and spike in the Ethylene Oxide values. In addition, exorbitant freight charges and shortage of shipping containers further sent ripples to the prices of Glycol Ether in this timeframe. However, the demand from the downstream sectors including personal care, cosmetics and others remained firm in this quarter. Ethylene Glycol Monobutyl Ether CFR (India) prices were assessed at USD 1168.28 per MT in September showcasing a hike by USD 179 /MT since July.
Europe
In Europe, Glycol Ether market sentiments remained volatile during the third quarter backed by the tight supplies and lower production rates due to the natural gas crisis in this quarter. Moreover, tremendous hike in the freight charges and shortages of shipping container also contributed to surge the prices of Glycol Ether in this timeframe. Unprecedented hike in the feedstock values further pushed the prices of Glycol Ether. However, an improvement in the offtakes from the downstream manufacturers was observed in this quarter after the revival in the industrial and commercial activities.
For the Quarter Ending June 2021
North America
Supply in the North American region improved in comparison to the previous quarter as refineries increased the production margins to improve the overall availability of materials. Overall, the market outlook recovered from the impact of the winter storm. Demand was exceptional throughout the quarter as orders from domestic and overseas market were piled up since the previous quarter. Offtakes were also consistent from various downstream manufacturing facilities, especially from the paints and coating industries as the region observed a seasonal hike in construction activities. Consequently, Eastman Chemicals surged Glycol Ether offers by USD 880 per tonne in June.
Asia Pacific
Supply of Glycol Ether in the Asia Pacific region remained tight during the second quarter of 2021, owing to scheduled turnarounds in several plants in Northeast Asian region. However, the condition improved proportionally in the later half, as export volumes to the western region were curtailed by significant margin as the production in US Gulf Cost considerably recovered. Demand in the Asia Pacific region remained volatile, although offtakes remained consistent from the downstream industries. Prices of Glycol Ether in India stabilized against the reluctant offtakes from buyers with Ex-depot Mumbai offers drifting to USD 1103 pe tonne in June.
Europe
During the second quarter of 2021, supplies in the European region remained persistently tight in the first half of the quarter, however the situation improved in the second half as several major manufacturers including Dow and BASFs (Germany) ended their prolonged force majeure. Besides, further support in supply was provided by improved availability of the upstream n-Butanol. Demand observed a seasonal peak from paints and coating industries owing to the revival in construction activities in the Northwest European region.
For the Quarter Ending March 2021
North America
Glycol Ether supplies were constrained in the North American region during Q1 2021, as a major producing plant went for turnaround during the first half of Q1. Furthermore, production loss caused due to the freeze weather conditions in the US gulf region tightened the market supply. In March, Eastman Chemicals announced a surge in the prices of Glycol Ether by USD 550/tonne, amid spiked demand from the downstream sectors and firmer upstream rates. Extended lead times tensed buyers but refinery rates were heard ticking upward towards the end of the quarter ensuring better chemical availability moving into Q2.
Asia-Pacific (APAC)
The supply of Glycol ether remained short, owing to limited stock and constrained feedstock availability, followed by plant outages caused due to the Chinese Lunar new year holidays. Import from the North American region was lesser due to supply shortage amidst extreme weather conditions. Demand, however surged as the resurgence of COVID in South-eastern Asian economies increased the consumption from the disinfectant sector. Shortage in the feedstock Propylene surged the prices of Propylene Glycol Ether (PGE) in India to USD 1085/ton in March respectively.
Europe
During the first quarter of 2021, supplies remained tight, amidst some production related constraints in Northeast Europe followed by decline in imports from the US. Furthermore, high demand added to constraints in the quarterly supplies. The demand from downstream sectors improved amid improved consumption from the disinfectants and paints and coatings industry.
For the Quarter Ending September 2020
North America
Demand for several grades of Glycol Ethers including butyl di-glycol, butyl glycol, and propylene glycol methyl ether witnessed an appreciable revival with gradual improvement in buying interest observed in the latter half of the quarter. In the indefinite lockdown period, there was a prominent increment in the renovation activities that contributed well to the revival in demand from the construction industry. With easing virus panic in the country, the demand for Glycol Ethers underwent a substantial increment from the paints sector. Although relaxation in stringent restrictions levied marginal leverage to the market players but resurgent cases of coronavirus restrained the awaited market revival of Glycol Ethers in the US.
Asia
With several producers reducing their operating rates and a few of them imposing a temporary turnaround, Glycol Ether supply considerably reduced in Q3. Limited feedstock or sometimes poor margins compelled Butyl Glycol producers in China to opt for frequent temporary turnarounds. Trade disruptions caused by the global pandemic followed by poor weather exacerbated this supply crisis. Demand in China picked up by September due to early stockpiling activities observed before the Golden Weeklong holidays scheduled next month. Amidst the supply crises, China launched an anti-dumping and anti-subsidy probe to check on fair-trade deals from the US Glycol market. Demand in Southeast Asia appreciably improved as industries gathered prominent pace to make up for the loss incurred in the previous quarter. Driven by the reduced imports, prices of Butyl Glycol in India showcased a consistent month-on-month increment, averaging at USD 768 per MT in Q3.
Europe
In the early part of the quarter, the supply of Glycol Ethers remained ample on the back of subdued demand and no scheduled turnarounds. In late July, restricted imports from the US aided to stabilize this widened demand and supply. Substantial revival in downstream demand further supported in stabilizing the narrowed margins of Glycol Ethers in the region. However, in the final weeks of September, demand fundamentals tapered off again due to the resurgence of coronavirus in some parts of the region leading to a fall in prices of Glycol Ethers.
