For the Quarter Ending September 2024
North America
In Q3 2024, the Polytetramethylene Ether Glycol (PTMEG) market in North America faced a challenging environment characterized by declining prices. The significant factors contributing to this downtrend were multifaceted. Weak demand from downstream industries, particularly the spandex and textile sectors, played a pivotal role in exerting downward pressure on PTMEG prices. Oversupply issues further exacerbated the situation, with excess inventory levels hindering any potential price recovery. Additionally, subdued global economic conditions and heightened competition among industry players added to the negative sentiment in the market.
Focusing on the USA, the region experienced the most significant price changes during the quarter. PTMEG prices witnessed a substantial percentage change from the same quarter last year, registering a notable decline of 28%. Moreover, compared to the previous quarter in 2024, prices dropped by 11.3%, reflecting the continued downward trend. The price variation between the first and second half of the quarter further highlighted the challenging market conditions.
In conclusion, the latest quarter-ending price for PTMEG in the USA stood at USD 2364/MT, signaling a persistently decreasing pricing environment. The overall trends underscored a negative trajectory, influenced by a combination of factors that weighed heavily on market dynamics.
APAC
In Q3 2024, Polytetramethylene Ether Glycol (PTMEG) market faced significant challenges in APAC, marked by falling prices due to weak demand and oversupply. China, the largest market, saw a continued decline in PTMEG prices, driven by sluggish demand from the spandex and textile sectors. Despite the traditional peak season, the spandex market did not recover, leading to high inventories and limited procurement. Export volumes for clothing and textiles increased, but low prices curbed any substantial rebound in PTMEG demand. Supply remained high, with PTMEG plants in China reducing production rates due to financial losses and excess inventories. Fierce price competition further pushed prices toward historic lows. Meanwhile, demand stayed weak, especially in the spandex sector, which struggled with oversupply and declining prices. Domestically, retail sales of clothing and textiles fell by 1.6% year-on-year in August, reflecting low consumer confidence. PTMEG prices witnessed a substantial percentage change from the same quarter last year, registering a notable decline of 36.5%. Moreover, compared to the previous quarter in 2024, prices dropped by 11%, reflecting the continued downward trend.
Europe
In Q3 2024, PTMEG prices in Europe continued their downward trajectory, driven by weak demand and oversupply. The market witnessed a substantial percentage change from the same quarter last year, registering a notable decline of 14%. Moreover, compared to the previous quarter in 2024, prices dropped by 5.8%, reflecting the continued downward trend. In Germany, PTMEG prices remained under pressure due to global weakness in textile demand, impacting downstream sectors like textiles and spandex. Bearish sentiment, low trading volumes, and weak cost support from feedstock tetrahydrofuran exacerbated the market's challenges. Procurement was cautious as buyers limited purchases amid fears of losses. Despite efforts to stabilize prices, weak foreign trade orders and overcapacity kept pressure on the market. Demand for PTMEG remained sluggish, particularly in the spandex sector, with limited recovery prospects. In conclusion, the latest quarter-ending price for PTMEG in the Germany stood at USD 2604/MT, 1000 FD Hamburg, signaling a persistently decreasing pricing environment. The overall trends underscored a negative trajectory, influenced by a combination of factors that weighed heavily on market dynamics.
For the Quarter Ending June 2024
North America
In Q2 2024, the pricing environment for Polytetramethylene Ether Glycol (PTMEG) in North America has been overwhelmingly negative, marked by a consistent decline in prices. Several significant factors have driven this downturn. Predominantly, an oversupply situation has plagued the market, with inventories surpassing demand levels across the region. The downstream textile and spandex industries, major consumers of PTMEG, have exhibited subdued demand due to economic uncertainties and reduced consumer spending. Additionally, geopolitical tensions and high inflation rates have further constrained the purchasing power of downstream industries, exacerbating the bearish sentiment.
In the USA, where the most pronounced price changes were observed. From the previous quarter in 2024, prices degraded by -6%, reflecting persistent market challenges and indicative of dwindling demand as summer procurement activities failed to materialize as strongly as anticipated.
The latest quarter-ending price for PTMEG 1000 Del Texas in the USA stands at USD 2582/MT, underscoring the negative pricing trajectory. Overall, the PTMEG market in North America, and especially in the USA, has faced a notably negative pricing environment in Q2 2024, driven by persistent oversupply, waning downstream demand, and broader economic headwinds.
APAC
In Q2 2024, the pricing landscape for Polytetramethylene Ether Glycol (PTMEG) in the APAC region has been predominantly characterized by a negative sentiment, driven by several critical factors. A primary influence has been the persistent oversupply in the market, coupled with subdued demand from the downstream textile and spandex industries. The seasonal downturn in textile consumption further exacerbated the situation, leading to decreased production enthusiasm among manufacturers. Additionally, logistical challenges, including high freight rates and port congestion, disrupted supply chains, particularly affecting imports from key suppliers like China. These factors collectively exerted significant downward pressure on PTMEG prices, resulting in a notable decline.
Focusing on South Korea, the market experienced the most pronounced price changes within the APAC region. The overall trend in Q2 2024 for South Korea exhibited a marked downturn, reflective of broader regional influences. Seasonality played a role, with typical off-season effects further dampening demand. The correlation between increased upstream crude oil prices and the declining PTMEG prices highlighted the complex interplay of factors at work. From the previous quarter in 2024, prices fell by 6%, indicating a continued downward trajectory. The quarter concluded with PTMEG prices at USD 2238/MT FOB Busan.
Overall, the pricing environment for PTMEG in Q2 2024 has been decidedly negative, driven by oversupply, weak demand, and logistical disruptions, with South Korea experiencing substantial declines reflective of broader regional trends.
Europe
In Q2 2024, the Polytetramethylene Ether Glycol (PTMEG) market in Europe faced a pronounced downward trend, influenced by several critical factors. The decline was primarily driven by subdued demand across downstream sectors, such as spandex, coatings, and textiles, exacerbated by low procurement activity and the ongoing economic uncertainties stemming from heightened inflation and geopolitical tensions. Additionally, inventory surpluses and a lack of robust cost support from feedstock tetrahydrofuran further pressed down prices. The sluggish global textile industry, marked by weak garment demand, created a bearish market sentiment, with manufacturers showing limited production enthusiasm.
In Germany, the impact was notably severe, with PTMEG prices exhibiting significant volatility. Seasonal factors such as the textile industry's low consumption period and adverse weather conditions further hampered market dynamics. The overall trend was characterized by a substantial 10% year-on-year decrease, reflecting persistent market challenges. Compared to the previous quarter of 2024, prices showed a marginal 3% uptick, indicative of transient supply chain adjustments rather than robust market recovery. A closer look within the quarter revealed a 1% price dip between the first and second halves, underscoring the continuous downward trajectory.
The pricing environment remained decidedly negative, with the latest quarter-ending price at USD 2801/MT for PTMEG 1000 FD Hamburg in Germany, epitomizing the ongoing pressures and the absence of significant demand revival.
For the Quarter Ending March 2024
North America
In the North America region, the pricing environment for Polytetramethylene Ether Glycol (PTMEG) in Q1 2024 has been characterized by increasing prices. Several significant factors have influenced market prices during this quarter.
The heightened demand from downstream industries, particularly in the polyurethane sector, has played a key role in driving up prices. Additionally, higher import prices from exporting nations and geopolitical tensions, such as the drone attack on a major oil refinery in Russia, have contributed to the escalation in production costs. The overall trend in the market has been positive, with prices experiencing a 9% increase compared to the previous quarter in 2024. Furthermore, there has been a 2% price increase in the second half of the quarter compared to the first half. However, when compared to the same quarter last year, prices have decreased by 12%.
Focusing specifically on the USA, the market has seen the maximum price changes. Prices have steadily increased throughout the quarter, reflecting a positive pricing environment. The latest quarter-ending price for PTMEG in the USA stands at USD 2967/MT, Del Texas. This price reflects the overall upward trend observed in the market. Overall, the pricing environment for PTMEG in the North America region, particularly in the USA, has been characterized by increasing prices during Q1 2024.
APAC
The PTMEG market in Asia witnessed dynamic fluctuations throughout Q1 2024. Despite these variations, the overall trend showcased resilience and stability in the region's PTMEG prices.
In January, China's PTMEG market started the year with stable prices, supported by moderate demand from the downstream textile. However, February brought a shift as prices experienced a slightly downward trend. This downturn was primarily driven by weakened cost support and subdued procurement from downstream industries. Despite the challenges, March marked a return to stability in China's PTMEG market with consistent feedstock tetrahydrofuran. Steady demand from the textile industry, coupled with improved European market demand, helped offset the impact of sluggishness in the construction sector.
In conclusion, the PTMEG market in Asia navigated through a period of fluctuation in Q1 2024, with China playing a pivotal role in maintaining stability. Despite the ups and downs, the overall price remained steady throughout the quarter, reflecting the resilience of the market amidst changing conditions. The latest quarter-ending price for PTMEG in the China stands at USD 2449/MT, FOB Shanghai.
Europe
In the Europe region, the pricing environment for Polytetramethylene Ether Glycol (PTMEG) in Q1 2024 has been characterized by increasing prices. Several significant factors have influenced market prices during this quarter.
Increased demand from downstream industries, especially in the polyurethane sector, has significantly influenced price surges. Moreover, elevated import prices from exporting countries and geopolitical tensions, like the drone attack on a major oil refinery in Russia, have further fueled rising production costs. In January, prices surged by 2.5% in Germany, and continue followed the bullish trend in February and March, with PTMEG prices rising by 3.3% and 1.5% respectively, driven by increased production costs and moderate demand. However, compared to the same quarter last year, prices have declined.
Focusing specifically on the Germany, the market has seen the maximum price changes. Prices have steadily increased throughout the quarter, reflecting a positive pricing environment. The latest quarter-ending price for PTMEG in the Germany stands at USD 2703/MT, FD Hamburg. This price reflects the overall upward trend observed in the market. Overall, the pricing environment for PTMEG in the Europe region, particularly in the Germany, has been characterized by increasing prices during Q1 2024.
For the Quarter Ending December 2023
North America
In Q4FY23, PTMEG prices in the USA market experienced a decline throughout the final quarter due to weak support from the feedstock tetrahydrofuran and subdued downstream demand. The decline was attributed to factors such as declining consumer confidence and a reduction in discretionary spending, driven by inflation and increased interest rates, while feedstock prices remained relatively stable in the first month. Subsequently, PTMEG prices in the US market witnessed a further decline in November and December, influenced by weak production costs and the overall demand outlook from the previous month.
This drop was further impacted by falling crude oil and natural gas prices, which have been consistently decreasing, alleviating the financial strain on PTMEG. The reduced demand for PTMEG in the USA, particularly from downstream industries like textiles and construction, facing challenges, led to a month-on-month decrease in sales. The combination of higher prices and elevated mortgage rates became unaffordable for buyers, resulting in decreased spending, especially on textiles and clothing, contributing to high inventories for many retailers.
Consequently, the price of PTMEG has been consistently dropping in the US. Limited inquiries from various suppliers indicate an ongoing decline in the price of PTMEG in the USA. As of December, PTMEG prices in USA were assessed at USD 2815 per MT, DEL Texas.
Europe
In Q4FY23, PTMEG prices in the European market experienced a decline throughout the final quarter due to weak support from the feedstock tetrahydrofuran and subdued downstream demand. Despite market openings in western countries during the festive season, there was a downturn in exports from the Asian market in the downstream textile industry. Ready-made garments, a crucial component of the textile export portfolio, witnessed a significant decline of 15%. In the initial month, there was limited demand from end-use and spandex-based industries at a slower pace in the textile sector, leading to a slowdown due to reduced orders and average market shipments. This slowdown was primarily influenced by suppressed demand and the impact of inflation on European clothing consumption. Industries in Europe are currently grappling with increasing inflation and higher interest rates in the eurozone. The German chemicals industry, in particular, is facing challenges, and a swift recovery seems unlikely, with production witnessing an 8% year-on-year decline. An excess of inventories in the domestic market resulted in oversupply, exerting downward pressure on prices within the supply chain. The ongoing decrease in upstream crude oil and feedstock tetrahydrofuran, fueled by weakened procurement from other end-use industries, contributed to the reduced production cost of PTMEG in the domestic market. As of December, PTMEG prices in Germany were assessed at USD 2621/MT, FD Hamburg.
APAC
In Q4FY23, prices of Polytetramethylene Ether Glycol (PTMEG) in the APAC market exhibited a downward trajectory throughout the final quarter, driven by weak support from the feedstock tetrahydrofuran and subdued downstream demand. In the initial month, there was limited demand from end-use and spandex-based industries at a slower pace in the textile sector, which faced a slowdown due to reduced orders and average market shipments, primarily influenced by suppressed demand and the impact of inflation on European clothing consumption. There was sufficient stockpile availability contributed to easing the overall production cost of PTMEG in the South Korean market. The price remained suppressed due to reduced demand from importing nations and downstream construction industries, resulting in a month-on-month decrease in sales. According to the Construction Association of Korea (CAK) and the Construction & Economy Research Institute of Korea (CERIK), the Korean construction industry was anticipated to be valued at $166 billion (KRW 207 trillion) in 2023, reflecting a 6.7 percent decline from 2022. The main challenge faced by the industry was the rising cost of construction materials and services. Limited inquiries from various suppliers suggested a decline in the price of PTMEG in South Korea. As of December, PTMEG prices in South Korea were assessed at USD 2454/MT, FOB Busan.
