For the Quarter Ending September 2024
North America
In Q3 2024, the Polyethylene Glycol (PEG) market in North America displayed a stable pricing environment, influenced by various market dynamics. The market saw steady demand from key sectors such as pharmaceuticals, personal care, and industrial applications, which played a crucial role in maintaining price stability. The pharmaceutical industry, particularly in drug formulation and delivery systems, continued to be a significant driver, leveraging PEG's versatility and effectiveness in formulations.
Supply chain conditions improved compared to earlier disruptions, contributing to the stable availability of PEG. Production costs remained relatively stable, supported by moderated feedstock prices, particularly for ethylene oxide, which is a primary input for PEG production. This stability in raw material costs helped producers maintain consistent pricing across the region. Additionally, the sector benefited from technological advancements in PEG-based products, enhancing their applications in various industries.
In the United States, the market showed slight price adjustments due to regional variations in demand and supply, but no major disruptions were reported. Factors such as steady economic activity and the continuation of environmental regulations influenced the market's balance, helping to sustain a stable supply-demand scenario. Overall, the quarter closed with a balanced pricing sentiment, indicating a steady outlook for PEG in the North American market during this period.
APAC
In Q3 2024, the Polyethylene Glycol (PEG) market in the APAC region saw a gradual price increase, driven by factors such as steady demand from industrial and pharmaceutical sectors, and limited supply. The market exhibited varied dynamics across the quarter, with China facing a slight dip in September due to a slowdown in the manufacturing sector and weaker export demand. Despite this, the market saw recovery in August, attributed to restocking activities and a temporary surge in Polyethylene Glycol demand for various end-use applications. Supply-side conditions remained relatively stable, as manufacturers managed inventories effectively, despite moderate logistical disruptions affecting the movement of goods. However, demand began to soften towards the end of the quarter, pressured by global economic uncertainties and reduction in new orders. The overall market sentiment turned cautious, reflecting a more conservative outlook among buyers. The quarter concluded with PEG prices at USD 1,120/MT on CFR- Qingdao basis, highlighting the region's mixed market conditions throughout the period.
Europe
The European Polyethylene Glycol (PEG) market in Q3 2024 experienced relatively stable to slightly declining prices, reflecting a balanced yet cautious market environment. Germany led the region with significant price adjustments, particularly influenced by reduced demand from key sectors such as pharmaceuticals and cosmetics. Economic uncertainties, including shifts in macroeconomic conditions and subdued export demand, contributed to pressure on prices throughout the quarter. Meanwhile, improvements in raw material availability and reductions in natural gas prices helped lower production costs, allowing manufacturers to maintain steady output levels. Despite these improvements, high inventory levels from earlier in the year and cautious purchasing behaviors by end-users moderated price fluctuations, leading to a more conservative trading approach. The market remained resilient but faced challenges from broader global economic factors, which dampened overall sentiment. As the quarter came to a close, the price of PEG in the region settled at USD 1,305/MT on FD Hamburg basis, indicating a cautious yet stable pricing trend during the quarter.
MEA
In the MEA region, the Polyethylene Glycol (PEG) market during Q3 2024 experienced fluctuations, influenced by a mix of domestic demand dynamics and competitive international pricing pressures. Following a price surge in August, which was driven by increased demand from pharmaceutical, industrial, and water treatment sectors, the market experienced a correction in September as demand levels normalized. Supply levels remained stable, supported by consistent production rates and efficient distribution channels. Meanwhile, the availability of competitive imports, especially from Asia, added further downward pressure on local prices, challenging the regional producers. Despite these headwinds, the demand for PEG remained relatively steady in key applications such as personal care and water treatment, helping to balance market conditions. Saudi Arabia, which saw the most notable price adjustments, managed to adapt to the changing dynamics. As the quarter concluded, PEG prices stood at USD 1,050/MT on FOB Al Jubail basis, reflecting a stable yet cautious market outlook as suppliers adjusted to evolving demand and supply dynamics.
For the Quarter Ending June 2024
North America
During Q2 2024, Polyethylene Glycol (PEG) pricing in North America exhibited a significant upward trend, driven by a combination of market dynamics and external factors. The surge in prices was primarily attributed to robust demand from key sectors, including pharmaceuticals and personal care products. Manufacturing employment levels also indicated economic recovery, bolstering the demand for PEG. Additionally, the rise in raw material costs, notably ethylene oxide, and an increase in manufacturing PMI, further contributed to the price hike.
The quarter was marked by an event of force majeure at a major manufacturing facility, creating temporary supply disruptions that impacted pricing. Focusing on the USA, where the most notable price changes were observed, the market exhibited strong upward momentum. Seasonal demand spikes, particularly from the pharmaceutical sector, coupled with ongoing stringent regulations in personal care products, played a crucial role in sustaining high prices. The correlation between increasing crude oil prices and raw material costs further pushed PEG prices upward.
The period concluded with a persistent positive pricing environment, underscored by strong demand and supply chain disruptions driving market prices upward. Overall, the quarter was characterized by a bullish sentiment, with robust demand and supply constraints significantly influencing market prices.
APAC
In Q2 2024, the Polyethylene Glycol (PEG) market in the APAC region demonstrated a notably bullish trend, driven by several critical factors. The quarter was marked by robust demand from the pharmaceutical and personal care sectors, which use PEG extensively for its emulsifying and moisture-retaining properties. This increased demand was a significant contributor to the upward pricing trajectory. Supply chain disruptions, particularly in the availability of upstream ethylene oxide, compounded by increased freight charges, further tightened the market. Additionally, the geopolitical tensions between Israel and Iran, resulting in missile attacks and regional instability, led to fluctuations in crude oil prices, which cascaded down the supply chain, affecting PEG production costs. Focusing on China, the country experienced the most substantial price changes, reflecting an overall positive pricing environment. The Chinese market saw consistent production rates yet faced occasional disruptions in feedstock availability. The steady expansion in manufacturing activities and robust economic indicators, alongside strategic initiatives in premium cosmetic sectors, further bolstered demand. Seasonality also played a role, with increased usage in personal care products during warmer months driving up prices. Compared to the previous quarter, prices surged, recording an 7.5% increase, and a notable 11.7% rise from the first to the second half of the quarter. Concluding the quarter, the price of PEG 200 CFR Qingdao in China stood at USD 1,100/MT, underscoring a positive pricing sentiment throughout the quarter.
Europe
In Q2 2024, the Polyethylene Glycol (PEG) market in Europe demonstrated relative stability, influenced by a confluence of factors. The quarter was marked by consistent demand from key sectors such as pharmaceuticals and personal care, which maintained upward pressure on prices. The ongoing industrial recovery post-pandemic spurred robust offtakes, while the stabilization of crude oil prices moderated cost fluctuations for raw materials like ethylene oxide, crucial for PEG production. Supply chain logistics showed signs of improvement, with reduced delays and enhanced transportation efficiency contributing to a steadier supply flow. Notably, there were no significant disruptions or plant shutdowns reported by key producers like BASF and Dow Chemical, ensuring a stable operational environment. Focusing on Germany, which experienced the most pronounced price changes in Europe, the market trends reflected seasonality and the broader economic sentiment. The correlation between rising demand during the summer months and PEG prices was evident. The price dynamics showed a 2% increase from the previous quarter of 2024, indicating a stable yet upward trend. Comparing the first and second halves of the quarter, prices remained consistent, reflecting a balanced market environment. The stable pricing environment, with the quarter-ending price at USD 1,320/MT for PEG 200 FD - Hamburg, suggests a positive sentiment rooted in steady demand and supply equilibrium. Overall, the pricing environment in Germany and the broader European region could be characterized as stable, with well-managed supply chains and sustained industrial demand underpinning the market.
MEA
In Q2 2024, the Polyethylene Glycol (PEG) market in the MEA region has experienced a robust upward trend, characterized by a marked increase in prices. This quarter has seen substantial price escalation driven by several pivotal factors. The first influential factor is the persistent high demand from the pharmaceutical and personal care sectors, where PEG is extensively utilized for its emulsifying and moisture-retaining properties. This demand surge has been further exacerbated by logistical challenges, including increased freight charges and occasional supply chain disruptions. Additionally, geopolitical tensions in the region have contributed to supply constraints, particularly due to incidents in the Red Sea, which have impacted shipping routes and subsequently freight rates. Focusing on Saudi Arabia, the country has observed the most pronounced price changes in PEG. The overall trend has been one of consistent price increases, reflecting the broader regional dynamics. Seasonality has played a crucial role, with elevated demand during the post-spring period as industrial activities recover. This has led to a significant 5% price increase from the previous quarter. Comparing the first and second halves of the quarter, there was an 8% price rise, underscoring the accelerating demand. The price surge has also been influenced by plant shutdowns, such as the maintenance period at Saudi Ethylene and Polyethylene Company (SEPC) in Al Jubail, which affected feedstock availability and production rates. The quarter concluded with a PEG 200 FOB Al Jubail price of USD 1,000 per metric tonne, reflecting a positive pricing environment. This sustained upward trend highlights a market characterized by strong demand, moderate to high supply constraints, and rising production costs, driven by fluctuating upstream crude oil and ethylene prices. Overall, the pricing environment in Q2 2024 for PEG in Saudi Arabia has been decidedly bullish, driven by robust industrial demand and compounded supply chain challenges.
For the Quarter Ending March 2024
North America
In the first quarter of 2024, Polyethylene Glycol (PEG) prices demonstrated a downward trend, with an overall decrease from the previous quarter observed in the North American market. At the beginning of the quarter, prices fell as the availability of stocks was firm in the regional market, and consumption remained low during the New Year holidays. Simultaneously, supply availability was firm after the holidays and moderately low offtakes from buyers.
During the mid-quarter, prices fell again in the international market, driven by decreased demand in the Personal Care sector. Meanwhile, production rates were hampered by the sluggish availability of upstream Ethylene, compounded by limited access to upstream Crude Oil in the global market due to OPEC+ production cuts.
The global freight costs eased towards the end of the quarter, attributed to container traffic bypassing the Suez Canal, which stabilized operations and reduced ocean rates on major trade routes. It reduced the logistics costs of PEG. Concurrently, demand for PEG fell among personal care product manufacturers due to decreased consumption of moisturizers amidst rising temperatures in the Northern Hemisphere. Consequently, inventory levels rose in the regional market due to reduced offtakes, and producers decreased the product quotations.
APAC
The Polyethylene Glycol (PEG) price trend showcased a downward trajectory in the Asian market during the first quarter of 2024, and prices witnessed a decrease of 4% from the previous quarter. Initially, the price trend was stable as the orders remained firm at PEG 200 for fruit coatings from the food sector amid the ongoing wedding season in the country. Meanwhile, the availability of supplies was inadequate in the market amid affliction in supply chain activities due to ongoing trade tensions and geopolitical uncertainties in the Middle East region. Midway through the quarter, prices decreased as inventory levels improved and orders decreased from personal care product manufacturers and the Pharma sector amid the underperforming Pharma sector in India. Towards the quarter's end, the global freight costs eased towards the end of the quarter, attributed to container traffic bypassing the Suez Canal, which stabilized operations and reduced ocean rates on major trade routes. At the same time, manufacturers of personal care products due to reduced consumption of moisturizers amidst rising temperatures in the Northern Hemisphere. Consequently, PEG quotations fell in the Asian market.
Europe
The Polyethylene Glycol (PEG) market in Europe exhibited mixed sentiments, with prices dropping by nearly 11% compared to the previous quarter. At the beginning of the quarter, inventory levels rose due to sluggish demand from buyers and delayed exports to importers because of affliction in supply chain activities due to ongoing trade tensions and geopolitical uncertainties. Simultaneously, the orders were low for PEG 200 for fruit coatings during winter. During the mid-quarter, the price trend revamped amid improved demand for PEG due to a rise in consumption of food preservatives amid high food prices. At the same time, the production rates were affected by the inconsistent availability of upstream Ethylene 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, Polyethylene Glycol (PEG) prices inclined again in the EU market, while offtakes remained moderate from buyers.
MEA
The Polyethylene Glycol (PEG) prices showcased an overall bearish trend in the Middle East market during the first quarter of 2024, with an overall decline of 2% from the previous quarter. At the beginning of Q1, production rates were firm, and the inventory levels increased in the regional market due to affected supplies amid supply chain disruption and increased ship traffic amid the Houthi Rebels attacks in the Red Sea. Simultaneously, the orders were low for PEG 200 as fruit coatings amid a rise in food prices. In the mid-quarter, the price trend rebounded as price inclined as operating rates declined in the manufacturing units amid sluggish availability of feedstock Ethylene Oxide. The upstream Ethylene productions were affected by the limited availability of upstream Crude Oil in the global market due to production cuts by OPEC+. It raised the production costs, and producers raised their quotations. Simultaneously, orders improved from the importers amid increased stocking practices and demand for PEG 200 for fruit coatings during the festival time in countries like China. Towards the end of Q1, inventory levels improved as orders fell from Asian buyers, particularly from the food sector, after the celebration of various festivals marking the arrival of the spring season. Consequently, producers reduced their PEG quotations to improve offtakes.
For the Quarter Ending December 2023
North America
The Polyethylene Glycol price decreased in North America throughout 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 PEG 200 as a solvent in end-user industries.
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 Polyethylene Glycol. 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 again decreased the Polyethylene Glycol prices.
APAC
The Polyethylene Glycol price decreased in the APAC region throughout the fourth quarter of the year amid underwhelming demand sentiments from buyers. Initially, demand for PEG 200 remained firm from the buyers for the coating of fresh fruit preservation in the country during the festive time in the region, and supply rates were consistent from the exporters. On the contrary, demand for Polyethylene Glycol remained sluggish from ink manufacturers. Furthermore, procurement activities remained low from the end-user industries amid a declining trend for end products in the regional market. Meanwhile, the cost support declined from the upstream Ethylene during the mid-quarter due to reduced offtakes from Glycol industries, which improved the availability of Ethylene and lowered production costs of Polyethylene Glycol. 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 personal care product manufacturers, which raised the market inventory levels.
Europe
The Polyethylene Glycol showcased bearish movement in the European region in the final quarter of 2023. At the beginning of the quarter, prices decreased amid declined demand for PEG 200 for the coating of fresh fruits amid an increase in cultivation rates in the Horticulture sector and deflation in food prices. During the mid-quarter, orders fell noticeably from the personal care product manufacturers amid reduced buying and procurement activities from end users. Simultaneously, the decrease in upstream Ethylene offtakes from downstream Glycol industries led to a reduction in the cost support from Ethylene and negatively impacted the production costs of Polyethylene Glycol. 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 end product such as ointments and cream manufacturers.
MEA
The Polyethylene Glycol prices showcased the bearish movement in the Middle East region during the Q4 of 2023. At the beginning of the quarter, prices fell noticeably as the supplies were excessively available amid a decline in consumption rates from domestic and international consumers. The demand for PEG 200 declined from importers for the coating of fresh fruits amid an increase in cultivation rates in the Horticulture sector and deflation in food prices. Simultaneously, the cost support on upstream Ethylene declined amid ease in speculations around the supply chain disruptions in the Middle East amid conflict between Israel and the Palestinian Islamist Group. During the mid-quarter, the production and supply rates declined as the market situation was uncertain due in the region to the rising tensions between the Palestine and Israel war, coupled with a decrease in buying activities from the end-users, negatively impacting prices. Towards the end of the quarter, domestic inventory levels rose as inquiries were low for PEG 200 from the food sector for food coating amid a rise in food inflation and a decline in the food sector sales index by 1.4% in December 2023. Simultaneously, supplies were affected to the international markets after Houthi Rebels in Yemen attacked the vessels in the Red Sea, causing an increase in ship traffic and commercial vessels rerouted to the Cape of Good Hope.
For the Quarter Ending September 2023
North America
The Polyethylene Glycol prices shifted movement in the North American region during the Q3 of 2023. Initially, quotations decreased by producers due to depressed demand for PEG 200 from the end-user industries amid weak activities in the downstream sectors. 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 Panama Canal. Consequently, product prices inclined during the mid-quarter. The supply rates remained tight from suppliers due to declined production rates amid affected supplies of upstream Ethylene due to decline in global inventories of upstream Crude oil amid production cuts by Russia and OPEC+. Meanwhile, the hike in bank interest rates by Federal Reserve Bank to cool down the rising inflation resulted in a slight decline in demand from buyers, causing a slowdown in economic growth of the region, and offtakes remained moderate from Pharma sector. Then the occurrence of Hurricane Idalia on August 30, 2023, made landfall, and caused hinderance in supply rates, and prices rose again towards the end of the quarter.
Asia
In the Asian region, the Polyethylene Glycol price trend remained firm, and prices increased by almost 6% during the 3rd quarter of 2023. At the beginning of the quarter, demand for PEG 400 rose from eye drops manufacturers in India amid a sudden rise in conjunctivitis cases. Meanwhile, the availability of supplies was inadequate as production rates were affected due to low availability of upstream Ethylene due to plant shutdown activities at ONGC Petro-addition (OPAL). During the mid-quarter, prices rose marginally amid stabilization in demand for PEG 400 from Pharma sector and limited supplies from middle east exporters. Simultaneously, regional storms and typhoons like Doksuri, Saola, Khanun and heavy rainfall increased the logistics duration, and supply rates remained inadequate. Operating rates fell due to weak availability of upstream Ethylene supplies amid Crude Oil production cuts by OPEC+ and Russia. Consequently, the product supply rates remained moderately low in the market. The product prices rose again towards the end of the quarter as procurement activities remained firm from buyers before the arrival of festivals and holidays in the region.
Europe
The Polyethylene Glycol 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 downstream industries amid moderate activities in the end-user sectors. The high energy prices, and hike in bank interest rates by European bank 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 declined marginally amid limited supply rates in the market. At the same time, cost support was high on upstream Ethylene due to escalation in Brent Crude Oil prices amid stressed Crude Oil stocks due to production cuts by global refineries. It raised the product prices towards the end of the quarter amid stable demand from downstream industries and Pharma sector. Meanwhile, the hike in bank interest rates by European Central Bank resulted in negatively impacted demand from buyers at the end of the quarter 3 of 2023.
Middle East
In the middle east region, the Polyethylene Glycol price trend showcased bullish movement, and prices surged by almost 9% during the Q3 of 2023. Initially, prices increased due to sudden rise in PEG demand from Asian importers stressed availability of inventory levels. The availability of stocks was inadequate due to a drop in production rates towards the end of the previous quarter. During the mid-quarter, prices increased marginally amid stabilized demand for PEG 400 from the Asian importers to produce eye drops. Simultaneously, feedstock Ethylene costs escalated amid high upstream prices because of a decline in global inventories and production cuts by OPEC+ and Russia. The production rates declined, and suppliers limited their supply rates to importers. Towards the end of the quarter, Yanbu National Petrochemical Company, with Ethylene production capacity of 1.38 MMTPA, went for an unplanned outage from 14th August 2023 to Early-September 2023 and negatively impacted the production rates of PEG. Consequently, product prices rose amid moderate demand and limited supply rates to the importers.
For the Quarter Ending June 2023
North America
The Polyethylene Glycol price trend shifted movement during Q2 of 2023 in the North American region. 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 Polyethylene Glycol 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. 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 Polyethylene Glycol price trend showcased bearish sentiments, and prices fell gradually during Q2 of 2023. At the beginning of the quarter, supplies were tight from the middle eastern exporters, which eventually improved towards the end of the H1 of Q2, and prices decreased by exporters amid reduced cost support from upstream and increased operational rates. Simultaneously, the domestic inventory levels rose due to low demand from the downstream Polyether industries. In the H2 of the quarter, the contraction in the feedstock Ethylene costs amid a decrease in upstream Naphtha prices reduced the production costs of Polyethylene Glycol. At the end of the quarter, production and export rates of PEG remained moderate. Meanwhile, the demand for PEG was moderately low from the Pharma sector due to reduced orders for oil-based ointments amid an increase in humidity levels. Furthermore, the rise in food inflation in India negatively impacted the consumer's purchasing power and the offtakes of skincare products from the market.
Europe
The Polyethylene Glycol price trend shifted movement during Q2 of 2023 in the European region. Initially, prices were stable and rose marginally amid balanced demand-supply dynamics and average offtakes from the buyers. Simultaneously, the feedstock Ethylene Oxide prices were stable initially amid volatile upstream prices. The feedstock prices declined from the mid-quarter after the reduced cost support from upstream Naphtha and an improvement in the inventory levels amid reduced offtakes from the downstream buyers. It reduced the production costs of PEG. At the end of the quarter, the decline in the price intensified amid firm availability of supplies from Asia and reduced buying and manufacturing activities in the region. The hike in bank interest rates by the European Central Bank and the Bank of England to curb rising inflation made the buyers conscious while making purchases, and they avoided any unnecessary trading activities. Furthermore, the decline in the input costs reduced the variable costs of production of PEG during the quarter.
Middle East
The Polyethylene Glycol price trend seesawed during Q2 of 2023 in the Middle East region. At the beginning of the quarter, the prices rose amid moderate availability of supplies and consistent demand from international buyers. Simultaneously, the increase in the feedstock Ethylene Oxide prices amid volatile upstream prices due to increased demand for upstream Crude Oil after the announcement of Oil production cuts by OPEC+. However, the supply rates increased during the mid-quarter due to expansion in the manufacturing sector. The inventory levels rose amid stable offtakes from buyers. Simultaneously, the production costs declined due to a contraction in feedstock prices and the reduction in global energy costs amid rising temperatures. Towards the end of Q2, the prices rose again due to moderate production rates and consistent consumption of PEG from the food sector, which depleted the domestic inventory levels. The demand improved from the paints and coating sector, which stressed the availability of supplies at the end of Q2, 2023.
For the Quarter Ending March 2023
North America
In the North American region, the Polyethylene Glycol price trend remained firm during the 1st quarter of 2023. The orders were consistent from the end-user cosmetic sector amid depressed inventory levels and moderate availability of supplies due to weak supply chain activities. In the mid-quarter, the production rates were affected amid the 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. Then again, the price trend showcased some improvement amid stable inventory levels and conscious buying activities by consumers in the final month of Q1.
Asia
In the Asian region, the PEG price trend shifted sentiments during the Q1 of 2023. At the beginning of Q1, prices were stagnant amid stable demand-supply dynamics. However, from the mid-quarter, the price trend shifted, and prices fell due to sluggish demand and excess availability of product supplies. Simultaneously cost pressure eased due to the surplus availability of feedstock Ethylene Oxide. In the final month of Q1, consumption rates declined in the Polyol industries, which raised inventory levels. Simultaneously, production costs contracted again due to decreased upstream cost support due to reduced offtakes of feedstock Ethylene amid volatile Crude oil prices.
Europe
Polyethylene Glycol remained firm in Europe during Q1,2023. Initially, prices rose amid moderate operating rates and stable consumption rates from the end-user cosmetic sector for creams and lotions. In the H2 of the quarter, the price trend continued to showcase a bullish movement. Production rates were negatively affected due to weak feedstock supplies due to increased sanctions on Russian products during the mid-quarter. Inventory levels remained under stress till the end of the 1st quarter. Offtakes were consistent from the downstream industries amid moderate production rates due to volatile upstream costs.
For the Quarter Ending December 2022
North America
Polyethylene Glycol prices declined 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 feedstock Ethylene Oxide prices after USA’s EPA identified risks from commercial sterilization facilities using Ethylene oxide. It negatively impacted the production costs of PEG. However, during the mid-quarter, PEG prices maintained stability due to a rise in production costs amid high feedstock Ethylene demand and an increase in offtakes from the Pharma sector. Then in the final month of Q4, PEG prices declined again because of weak demand and consumption rates and moderate availability of supplies in the market.
Asia
In Asia, Polyethylene Glycol prices decreased throughout quarter IV of 2022. For an initial couple of weeks, prices were firm and rose marginally due to limited feedstock supplies. After that prices started to decrease and fell till the end of the quarter. Offtakes declined from the Pharma sector due to its excessive use in cough syrups. In the mid-quarter, PEG prices dropped amid improved feedstock availability after the restart of feedstock Ethylene plants like Idemitsu Kosan, with a capacity of 6,90,000/MT, production improved, and the cost of PEG decreased. Towards the end of the quarter, prices plunged again in Asia amid destocking practices by producers and a decline in global freight charges.
Europe
Polyethylene Glycol 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 PEG. 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, the PEG price trend maintained stability on the back of moderate offtakes and a decrease in the feedstock and production costs amid a reduction in the input costs.
For the Quarter Ending September 2022
North America
In the Q3 of 2022, Polyethylene Glycol prices fluctuated in the USA on the back of shifting demand sentiments by the downstream industries. In the first half of the quarter, prices decreased sharply due to the issued embargo on feedstock transportation through rail, increasing domestic inventory levels. While in the second half of the quarter, upstream producers like LyondellBasell went under unplanned shutdown and domestic inventory levels remained under stress amid the weak demand sentiments from the downstream industries. At the same time, the rise in inflation and port congestion disrupted supply chain activities affecting the domestic inventory levels. Subsequently, Polyethylene Glycol prices in the USA settled at USD 5500/MT.
Asia
A shifting price trend of PEG was observed in the Asian region. Initially, the product prices rose slightly due to increased production costs as the volatility in crude oil values impacted the values. However, in the second month of Q3, the price trend shifted, and product prices plunged consistently in the region till the end of the quarter on the back of increased product inventory levels amid the weak demand sentiment from the cosmetic and daily care product manufacturers. At the same time decrease in upstream and feed costs reduced the production costs. At the end of the quarter, Polyethylene Glycol India's discussions settled at INR 152700/MT, after an average increase of 3% in the previous quarter's prices.
Europe
A stable price trend of Polyethylene Glycol was observed in the European region due to average to low demand sentiments from the consumer end on the back of rising inflation and high input values. Key feedstock producers like LyondellBasell, with a capacity of 3.56 MTPA, went under planned shutdown in August due to the unavailability of feedstock, which affected the domestic feedstock inventory levels. While the consistent plunge in the feed prices from the mid-quarter on the back of reduced offtakes by downstream, industries decreased the production values. 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. At the end of Q3, Polyethylene Glycol discussions in Germany settled at USD 5100/MT.
For the Quarter Ending June 2022
North America
During the second quarter of 2022, Polyethylene Glycol has observed mixed sentiments in the North American region. The uncertainty in the crude oil prices led to the downstream commodities. The cost pressure from the upstream ethylene oxide fluctuated due to the war between Russia and Ukraine, further putting pressure on the petrochemical commodities. The sanctions on Russia have supported the inquiries for WTI Crude from several Northeast Asian regions, coupled with the higher freight charges and delayed deliveries had levied impact on the complete value chain. Demand from downstream cosmetics and personal care products supported to increase in the price of Polyethylene Glycol in the region.
Asia-Pacific
During the second quarter of 2022, the market sentiments for Polyethylene Glycol have witnessed a gradual upward trajectory throughout the quarter. The upstream Ethylene and naphtha prices fluctuated in the international market, resulting in the polyethylene glycol price rise in the regional market. Although the market sentiment remained uncertain, OPEC has been unable to offset the rapid output gap in crude oil. The cost pressure from the upstream was strengthened, affected the downstream industries rose the price of Polyethylene Glycol. The percentage of Polyethylene Glycol (200) was recorded at an inclination of 8% on an Ex-Delhi NCR basis during the quarter end.
Europe
In Europe, the Polyethylene Glycol market showed a growth trend; the cost pressure from the upstream Ethylene Oxide drove the downstream industries in the region. The crude oil and natural gas prices rose steadily the downstream derivative industries increased their offer in the region. Russia’s unnecessary aggression toward Ukraine continues to weigh on the economy in Europe and beyond. It led to materials shortages and increased energy and commodity prices. Increased inflationary pressures were also evident from the rising export prices of the euro area’s competitors. A limited supply of raw materials drives up prices for manufacturers in the region.
For the Quarter Ending March 2022
North America
In North America, the Polyethylene Glycol market was stable to weak in the first half of Q1 but soared significantly in the second half of Q1. The US market observes weak demand from downstream industries. Although, the cost support from the feedstock soared due to the Russia-Ukraine war that brought strict sanctions on the upstream supplies from Russia. However, higher freight charges and port congestion kept rising prices as an outcome of the conflict. Demand for durable products increases in the cosmetics and personal care sector, leading to increased inquiries about PEG. In response, the prices of Polyethylene Glycol gained 6% in the producer's quotations during the first quarter of 2022.
Asia Pacific
The Polyethylene Glycol market in the Asia Pacific region observed a mixed sentiment as the external factors impacted the market across the region. The higher values of the upstream energy cycles have levied its impact on the complete value chain, strengthening the producers' will across the region to raise the offered quotations for Polyethylene Glycol. Whereas in China, the market dynamics swindled persistently amidst the Lunar New year holidays and resurgence of COVID that showcased the contradicting trend in the Chinese domestic market. As a ripple effect, the prices in China gained by 4% during the mid-quarter, then observed a steep downtrend during the quarter-end.
Europe
In Europe, the Polyethylene Glycol market declined in the first half of Q1 but then increased due to market instability and the prevailing energy crisis throughout Europe. The worsening situation between the two countries caused a weak demand for PEG in the first quarter, and the supply disruption, combined with high freight charges, resulted in the price surge. In addition, the conflict in the eastern European region further induced inflation in commodity pricing. As a ripple effect, the offers for PEG have surged by 7% during the quarter ending in March 2022.
For the Quarter Ending December 2021
North America
During the fourth quarter of 2021, the Polyethylene Glycol market in the North American region witnessed a downward trajectory after the operational rates at the manufacturing facilities in the US restored post-hurricane season. However, despite the adequate cost support from the upstream and feedstock the offers for PEG in the domestic market plunge due to the healthy demand-supply margins. As a ripple effect, the offers for Polyethylene Glycol witnessed a constant plunge amidst the insignificant demand outlook from the downstream sector to kept the offers buoyed and the FOB Texas discussions for the PEG 17cST grade were settled at USD 4110 per tonne, during the quarter ending in December.
Asia Pacific
The PEG market in the Asia Pacific region witnessed a persistent uptrend in the fourth quarter of 2021. This uptrend in the market sentiments was attributed to the tight supply outlook despite the capacity expansion of the upstream in the domestic markets. This development is attributed to the slow down in the operational load at the manufacturing facilities in China due to the power rationing although the situation stabilized in the second half of the quarter. The demand soared from the construction ahead of the falling temperature in the Northeast Asian region. However, the bullish sentiments prevailed throughout the quarter and the Ex-Delhji discussion for PEG 1000 grade was settled at USD 2593 per tonne, during the quarter ending in December.
Europe
During the fourth quarter of 2021, the European Polyethylene Glycol market remained consolidated due to the ongoing energy crisis in the domestic market which proportionally weighed on the manufacturing capabilities due to the higher energy cost. Whereas, the demand remained healthy ahead of the falling temperature in the northwest European region from the downstream construction sector. However, the uncertainties induced by COVID and rebound in the international crude oil market induced adequate cost support, and the producers were forced to raise the offered quotations.
For the Quarter Ending September 2021
North America
In North America, Polyethylene Glycol (PEG) prices witnessed an upward trajectory during the third quarter of 2021. Tightened supply and robust demand were witnessed from the downstream industries including medical and pharmaceutical which led to the increment in the prices of PEG during the third quarter. Due to Ida hurricane that made landfall in the gulf coast of the USA, many Ethylene plants were shut down resulting in its scarcity which consequently fumed the prices of PEG in US.
Asia
In Asia, PEG market sentiments varied from country to country during the third quarter of 2021. In India, PEG market experienced mixed sentiments as in the beginning of the quarter, PEG prices shot up due to the robust demand after the resurgence in the industrial and commercial activities. Moreover, supply tightened due to clogging on the trade routes and constraint availability of shipping containers. However, in September PEG prices dropped owing to the ease in supplies. Besides, buyers were witnessed actively restocking which hampered trade activities as margins of downstream Styrene-Butadiene Rubber remained under pressure. Hence, Ex-Delhi NCR, Polyethylene Glycol prices rose from USD 2331.85/MT to 2398.85/MT from July to August and declined to USD 2256.40/MT in September.
Europe
In Europe, PEG prices attained tremendous gains during the third quarter of 2021 backed by the spike in the raw material values. Factors such as lower imports from other regions as an impact of Ida hurricane and congestion on several ports in China also contributed to the hike in the prices of PEG in this timeframe. Moreover, many manufacturers were compelled to curtail their production rates owing to the energy crisis across the Europe. However, the demand from the downstream remained firm throughout the quarter that kept the market sentiments high in Europe.
For the Quarter Ending June 2021
North America
Polyethylene Glycol (PEG) prices fluctuated in a narrow range throughout the quarter across North America region. The demand from the downstream ethoxylates derivatives and pharmaceuticals remained firm, while the overall supply activity was tight. The price of feedstock Ethylene Oxide also fluctuated in USA due to frequent change in availability within the country. However, the demand from the global market was also responsible for the overall buoyancy in the PEG prices. Improved production activities across the gulf of USA, increased the availability of upstream Ethylene in the country, which led to a decline in the prices of most of downstream products including PEG during the month of June. Therefore, under these scenarios, the price of PEG was assessed as USD 1470/MT during the last week of May in USA.
Asia
The Asian market witnessed an overall surge in prices of Polyethylene Glycol (PEG) during this quarter, backed by stable offtakes from the end user segments. PEG manufacturers based in China reported firm offtakes from the downstream units, bolstered by rapid economic recovery and rising demand from the international market. While in India, demand was comparatively low with the surge in pandemic in the country. Rising freight cost and global inflation impacted the price of Polyethylene Glycol in India, where traders were trying to protect their margins by raising their product prices. The price of PEG rebounded in India and reached USD 1719/MT and USD 2302/MT for PEG MW 200 and 1000 respectively in India during June 2021.
Europe
The European market also reported firm offtakes for PEG in its major countries, while curtailed supply activities and expensive cargoes led to an effective rise in the regional PEG pricing. During this quarter, demand for Polyethylene Glycol remined firm from the regional market, while due to limited inventory level prices kept on rising. Imported cargoes were also getting expensive in effect of soaring freight cost and lower container availability across major trade routes. In addition, low feedstock EO availability also impacted the downstream derivate PEG across the region during this quarter.
For the Quarter Ending March 2021
North America
The North American PEG supply was disrupted in Q1 2021 due to severely low supply of feedstock Ethylene Oxide across the region. It is estimated that more than 65% of the total Ethylene Oxide plants were not running due to extreme climate calamity across the US gulf during mid-February. In addition, major upstream Ethylene plants also remained idle in effect of this climate condition. As the demand for PEG was recorded lower than expectation, shortage of feedstock chemicals remained largely responsible for small rise in its prices. In US, price for PEG rose by 1.65% in first quarter 2021 and settled down at USD 1535/MT in March.
Asia
The Asian market witnessed tight supply for PEG throughout the quarter, though the demand remained stable to firm across the region. In China, after Lunar New Year, as the inventories were running low, it pressurised the overall PEG market of APAC by supporting its prices. On the other hand, Indian market faced difficulties to procure feedstock Ethylene Oxide material due to its skyrocketing prices. Import prices from European countries like Germany were hiked every month and Suez Canal crisis supported this rising trend across the region. Meanwhile PEG prices rose from USD 2172.48 (January 2021) to USD 2255.06 (March 2021) in India.
Europe
The European market witnessed gradual increment in demand for PEG across the region amid tight availability of feedstock chemicals. US gulf storm impacted the product availability across Europe, though the production was majorly impacted by the feedstock Ethylene Oxide. Ethylene Oxide cost fluctuated with handiness of feedstock Ethylene across the region, the demand for Ethylene remained conjointly high from different sectors like PVC which rendered shortage of material across region. Overall price of Ethylene Oxide witnessed an eternal rise, and it is anticipated that it'll come back all the way down to normal as North American country production is restoring itself week over week.
For the Quarter Ending December 2020
North America
Demand fundamentals for Polyethylene Glycol (PEG) remained firm in North America backed by the surge in consumption of various downstream industries following the gradual pick up of economies of several countries across the region. Meanwhile, operating rates at the upstream units in the gulf region were improved after resumption in several plant turnaround due to spate of hurricanes in October. Following the strong demand for glycol ethers used in disinfectants and cleaning chemicals, prices for PEG are likely to remain in an uptrend in the next quarter as well.
Asia
Polyethylene Glycol (PEG) supply across the Asia Pacific region remained tight in Q4, impacted by cost pressure on manufacturers due to consistent rise in upstream values. Steep climb in the prices of Ethylene Oxide due to its limited availability supported the surge in prices of derivative PEG in Asian countries in the quarter ending December. Besides, increase in market activities of downstream sectors like skin creams, surfactant, detergent, pharmaceutical formulations, polymer etc. gradually improved the demand for the product throughout Q4 2020.
Europe
Persistent surge in the feedstock supply followed by significant rise in container freight considerably pushed up the PEG pricing in European region during Q4. Traders remained concerned of the snug upstream supply due to the low container availability across several trade routes connecting Europe. A PEG trader revealed that prices of Ethylene Oxide & its Glycol derivatives significantly increased which led to an astonishing rise in its production costs. The demand for PEG considerably improved with rise in export demand from several Asia Pacific countries which led to a positive impact upon its prices.
