For the Quarter Ending June 2022
North America
The upstream raw material propylene oxide price decreased throughout the second quarter in the North American region. The polypropylene Glycol price declined due to the region's reduced raw materials. The upstream propylene polymer grade price decreased throughout the quarter due to poor demand from the downstream industries and less buying trend in the region.
The naphtha price was reduced, and a sufficient supply of raw material to meet the ongoing demand from the downstream derivative industries further reduced the price of Polypropylene Glycol in the region. Reduction in operational cost also supported to curb of the price of downstream industries in the second quarter.
Asia Pacific
In the Asia region, the Polypropylene Glycol prices showed a downward trajectory in the regional market throughout the second quarter. The upstream raw materials propylene oxide persistently decreased owing to the less demand from the downstream polymer end-users industries in the region. The cost pressure from upstream raw materials was weak in the regional market. The feedstock consumption was stable and sufficient inventories of raw materials to reciprocate the overall demand, which caused the smooth supply of Polypropylene Glycol and prices, were decreased in the region. Due to another outbreak, covid-19 restricted the market movement to some extent, contributing to the price decline in the Chinese market.
Europe
In the second quarter of 2022, Polypropylene Glycol prices were observed to plunge in the European market. In April, the upstream propylene witnessed an upward trajectory. At the end of April, the price fell for the rest of the quarter due to the poor demand from downstream derivatives like Polypropylene Glycol, polyurethane, etc. A sufficient supply of raw materials further reduced Polypropylene Glycol's price. Polypropylene Glycol prices fell across Europe due to fewer buying sentiments from end-user industries. The cost pressure from upstream propylene oxide prices was reduced across the region, lowering downstream industry prices.
For the Quarter Ending December 2021
North America
Because of robust upstream propylene oxide and propylene, as well as exploding upstream crude oil prices, the Propylene Glycol market in North America showcased a soaring price pattern in October. Force majeure in numerous US facilities as a result of the Ida hurricane's destruction has widened the country's supply shortfall. In November, however, the manufacturers were able to see some respite due to the refiling of crude oil inventories through the coordinated release of strategic reserves and the recovery of hurricane-affected plant activities. In addition, market remained tight for upstream propylene supply due to curtailed operations post witnessing an explosion in ExxonMobil’s facility based in Baytown, that led to a steep rise in prices of Upstream chemicals including Propylene in the country during this period.
Asia
Several factors bolstered the overall uptrend in pricing dynamics for Polypropylene Glycol in the Asian market during Q4 2021. As a result of rising raw material costs, constrained supply, and high freight expenses, feedstock Propylene Glycol prices in the Asian Market hit their highest level of the year in October. Price shocks also occurred in China as a result of the Chinese government's "Dual Control Policy" for energy rationing, which prompted manufacturers to cut their operating rates in their facilities. Despite still strong pharma sector demand, average Polypropylene Glycol prices fell in November as supply chain issues eased, allowing upstream propylene oxide to reach its destination.
Europe
Throughout the fourth quarter of 2021, the European Propylene Glycol market remained tight. Propylene Glycol prices continued to rise due to a combined burden of rising feedstock costs and a catastrophic energy crisis that boosted input costs. With the rapidly spreading Omicron variant in the region, demand in the pharmaceuticals industry increased at an unprecedented rate in the second half of the quarter. Due to supply chain interruptions in the first half of the year and Coronavirus-related transportation constraints near the end of the quarter, propylene glycol spot prices remained high.
For the Quarter Ending September 2021
North America
The prices of Polypropylene Glycol witnessed a significant rise across the North American region in the 3rd quarter of 2021. A raw material supply crunch and sturdy demand have pushed up the price curve of Polypropylene Glycol during this quarter. The occurrence of Hurricane Ida landfall in the U.S. Gulf Coast on Sunday, August 29 has disrupted the production activities which translated into supply tightness across the region. As per market experts, surging raw material prices are strongly tied to acute shortage of Propylene Oxide and continued operational setbacks while demand stands bullish from various downstream sectors during Q3 2021.
Asia Pacific
In the Asia Pacific region, the overall market outlook of Polypropylene Glycol demonstrated an upward trajectory during the third quarter of 2021 on the back of the consistent demand from the downstream sectors. Increased prices of feedstock Propylene oxide have given strong cost support for Polypropylene glycol in quarter 3. In the Indian market, a slight change in the prices of feedstock Propylene Glycol has led to a marginal rise in Polypropylene Glycol price during Q3. Demand fundamentals for glycols remained stable across the Indian market, while availability also remained ample to cater to the overall need. As per the market source, traders were trying to keep the price stable to induce offtakes. Thus, a marginal change in the price of PPG was observed during this month, which eventually assessed around USD 4737/MT PPG 6000 Ex-Chennai during October. PPG prices are likely to maintain overall stability in the 4th quarter.
Europe
In Q3 of 2021, the prices of Polypropylene Glycol rose effectively in the European region on the back of the increased demand from the downstream manufacturers. In terms of demand, offtakes were consistent from the pharmaceutical and personal care sector during the third quarter. Tight availability and soaring freight costs have further exacerbated the pricing trend of PPG in Q3 2021.
For the Quarter Ending June 2021
North America
In the North American region, the supply conditions of Polypropylene Glycol improved over Q1 due to improved plant operating rates in the upstream PDH units, refineries, and upstream crackers in the US Gulf region. However, there remained persistent shortage of the key feedstock Propylene Oxide. As the regional industrial infrastructure recovered from the impact of winter storm Uri, several manufacturers noted greater inflow of enquiries. Leading manufacturers surged the prices of almost all grades of Polypropylene Glycol (PPG) which proportionally impacted the prices of the product across the region. Demand was consistent with the downstream UPR sector.
Asia Pacific
Despite the slowdown of industrial and commercial activity due to second COVID-19 wave in India, the overall Polypropylene Glycol market outlook remained upbeat across Asia. India’s PPG-4000 rates crosses USD 3250/mt in June. Whereas in China, some manufacturers seemed reluctant to procure high-cost propylene oxide amidst rising inflation rate throughout China. As a ripple effect, several buyers side-lined and announced production cutbacks in the Chinese domestic market. Towards the end of Q2, new cases of delta variant found in the South China’s Guangdong port restricted the trading activities. In Japan, the price of Polypropylene Glycol gained by double-digits due to consistent offtakes from the downstream Polyester resin industries and continuously tight supply of the key raw materials.
Europe
PPG supply conditions in the European region remained constrained owing to the limited availability of upstream propylene oxide amidst turnarounds in several PDH units and refineries which further curtailed the production margins of Polypropylene Glycol manufacturers. Imports were limited from the North American region, forcing European buyers to be more flexible to procure goods from the China and other Asian countries. Demand was consistent from the downstream Polyester resins sector as the economies started to reopen in several parts of Europe. Hence the prices curved remained lifter throughout Q2.
For the Quarter Ending March 2021
North America
During the first quarter of 2021, PPG supplies remained affected as a major raw material plant went for a maintenance turnaround, causing tightness in the feedstock availability, followed by extreme freeze weather conditions in the US gulf region resulting in several plants outages. Demand, however surged as the winter season hit the region which improved the consumption from the automotive and polyurethane sector. High Ethylene Oxide prices and firm feedstock proportionally surged the prices of PPG in the North American region.
Asia-Pacific (APAC)
The supplies of Polypropylene Glycol in Asia were tight, owing to limited availability of feedstock ethylene oxide, as several plants went for maintenance turnarounds, followed by sluggish import and feedstock availability from the Middle East region. During mid-February, amid the Chinese Lunar New Year holidays several plants went for maintenance shutdowns. Demand remained resilient throughout the quarter, as the consumption from the downstream polyurethane and automotive sector. Due to resurgence of COVID, followed by overseas trade barriers hiked the CFR prices of PPG in India holding a quarterly average of USD 1631/ton.
Europe
Supplies in the European region remained constrained throughout the first quarter, due to limited availability of feedstock, followed by a major portion of upstream supply being diverted towards polyols production. Furthermore, supplies tightened due to reduction in imports from the US as compared to the previous quarter and Middle East, as a major petrochemical plant declared turnaround in February, resulting in hiked prices of PPG. Demand remained firm, as offtakes from the PU and automotive sector reduced due to lesser automobile sales amid the lockdown.
For the Quarter Ending December 2020
Asia
A combination of drivers pushed up the PPG price curve during the second half of Q4 2020. Drop in upstream Propylene Oxide (PO) supplies due to scheduled maintenance and plant turnarounds at several manufacturing facilities raised the regional PPG offers. The beginning of Q4 marked a sharp resurgence in the demand of PPG from the downstream PU foams. Demand in China and India during the second half of the quarter was largely tepid with offtakes limited as buyers slowed restocking activity ahead of the year-end. PPG traded volumes stood low in lieu of the vessel shortages in the region. Polypropylene Glycol 6000 was traded between USD 1550-1630 per MT on CFR basis in the Indian markets, shedding the losses incurred in Q3.
North America
Demand for Polypropylene Glycol (PPG) in the Americas was well-supported throughout Q4 2020 with the outlook turning optimistic towards the end of the quarter due to pent-up demand by the downstream foam manufacturers. Exports remained affected due to prolonged congestion at ports causing delayed delivery times in some regional ports. Higher Propylene and Propylene Oxide pricing pushed up the regional offers of several Propylene derivatives including PPG almost by double-digits. Players expressed concerns over suppressed production volumes during the first quarter due to planned maintenance at some upstream units.
Europe
In December, the region witnessed robust demand for polypropylene glycols (PPG) for the production of flexible foams and a sharp rise in prices due to constraints on the upstream availability. Shortage of shipping containers prompted buyers to report longer delivery times. Towards the end of the year, a tight Propylene availability impacted the production costs. Material shortage in the global market enabled some German players leverage opportunity and export volumes to some Asian economies. Some players showed urgency to trace persistent raw material volatility and propose logistical planning to predict any further fluctuations in price forecasts.
