For the Quarter Ending December 2024
North America
In Q4 2024, Propylene Glycol prices in the U.S. saw upward pressure, starting with a notable increase due to a combination of factors. Rising consumer confidence, supported by easing inflation and a Federal Reserve rate cut, bolstered demand. This optimism led to preemptive buying as market participants anticipated potential price increases. Concerns over a looming U.S. port worker strike and geopolitical tensions in the Red Sea further drove up demand, as retailers rushed to secure supplies in anticipation of disruptions.
As the quarter progressed, these supply chain issues deepened. Labor strikes at East and Gulf Coast ports, which began on October 1, severely disrupted shipments and caused significant delays. This led to bottlenecks in the market, intensifying competition among buyers for limited stock. Additionally, the uncertainty surrounding potential tariff increases under President-elect Donald Trump prompted retailers to expedite shipments, further adding strain to the already stressed supply chains.
Seasonal factors also played a role in pushing prices higher as winter approached. Increased demand for Propylene Glycol, particularly for antifreeze and other seasonal applications, compounded the pressure. The combination of heightened demand, supply chain disruptions, and anticipatory buying ahead of the festive season created a tight supply-demand dynamic that drove prices up throughout the quarter.
APAC
In Q4 2024, Propylene Glycol prices in China experienced upward pressure driven by multiple factors. At the start of the quarter, the prices surged due to a combination of increased domestic demand, particularly ahead of the Golden Week holiday, and production disruptions from holiday closures. Additionally, global supply chain challenges, including geopolitical tensions and shipping delays, further limited supply, pushing prices higher. Early November saw a slight price increase as China’s manufacturing sector expanded, fueled by government stimulus and favorable monetary policies. This growth spurred both domestic demand and export orders, driving up prices. The depreciation of the yuan also made exports more attractive, further boosting external demand. As winter approached, demand for Propylene Glycol increased due to its use in antifreeze and seasonal applications, further tightening supply and supporting higher prices. Additionally, rising raw material costs added to production expenses, prompting manufacturers to raise prices. This convergence of domestic and international factors contributed to an overall upward trend in Propylene Glycol prices throughout Q4 2024.
Europe
In Q4 2024, Propylene Glycol prices in Germany experienced a notable increase, spurred by a blend of economic recovery and logistical disruptions. Consumer sentiment improved, bolstered by rising income expectations, easing inflation, and interest rate cuts from the European Central Bank, which boosted consumer confidence and spending. This uptick in economic activity fueled higher demand for goods, including Propylene Glycol, as the peak shipping season approached. However, the market faced significant challenges from supply chain disruptions. Congestion at Hamburg's ports and extended shipping routes due to Red Sea disruptions placed additional strain on the supply chain, further elevating prices. Anticipating slower trade during the holiday season, suppliers strategically stocked up inventories, adding pressure to the market. Additionally, seasonal demand driven by increased need for antifreeze during the winter months contributed to higher consumption, driving prices up. Despite these upward trends, cautious buying behavior and market uncertainties helped moderate the price increases. In summary, the market in Q4 2024 experienced rising Propylene Glycol prices, fueled by a combination of improving economic conditions, seasonal demand, and ongoing logistical disruptions.
For the Quarter Ending September 2024
North America
In Q3 2024, the North American Propylene Glycol market witnessed a significant decline in prices, with the USA experiencing the most pronounced fluctuations. The market was heavily influenced by various factors, including weakening demand from end-user sectors, ample supply levels, and cautious consumer sentiment. These dynamics led to a downward pricing trend throughout the quarter. In response to these conditions, market participants adjusted by lowering their quotations to maintain competitiveness and support the market.
Notably, the region saw a substantial year-on-year price decrease of 27%, indicating a considerable shift in market conditions. The quarter-on-quarter decline of 11% further accentuated the negative pricing environment. Moreover, the comparison between the first and second halves of the quarter revealed a 6% decrease, highlighting the persistent downward trajectory in prices. The closing price of USD 1290/MT for PG Industrial Grade FOB Los Angeles in the USA underscored the prevailing bearish sentiment.
Overall, the pricing environment for Propylene Glycol in North America during Q3 2024 can be characterized as consistently negative, driven by subdued demand, abundant supply, and cautious market dynamics.
APAC
In Q3 2024, the APAC region witnessed a notable decline in Propylene Glycol prices, influenced by a confluence of factors. Weak market sentiments, exacerbated by subdued demand both domestically and internationally, played a significant role in driving prices downward. The ongoing global shipping crisis, coupled with economic uncertainties, further dampened demand, leading to an oversupply scenario in the market. Singapore, in particular, experienced the maximum price changes, reflecting the broader regional trend. Weakened consumer sentiment, driven by concerns over a potential economic slowdown and disruptions in global supply chains, contributed to a drop in demand for the Propylene glycol. The quarter saw a substantial decrease of -42% from the same period last year and a significant decline of -8% compared to the previous quarter in 2024. Notably, there was a -2% decrease in prices between the first and second half of the quarter, underscoring the continued downward trajectory. The latest quarter-ending price of USD 960/MT for Propylene Glycol Industrial Grade FOB Jurong in Singapore signifies the prevailing negative pricing environment, with prices reflecting a consistent decrease throughout the quarter.
Europe
In Q3 2024, the Europe region experienced a significant decline in Propylene Glycol prices, with the market witnessing a downward trend influenced by several key factors. The market saw subdued demand stemming from weakened economic conditions and logistical disruptions across the region. The deteriorating sentiment among businesses, coupled with increased pessimism about economic prospects, led to a decline in overall demand within the domestic market, exacerbating the downward pressure on prices. Additionally, rising shipping costs significantly disrupted market dynamics, affecting purchasing plans and causing financial strain for both buyers and suppliers. These logistical challenges further dampened demand for Propylene Glycol, intensifying the downward price trend. Netherlands, in particular, experienced the most substantial price changes in the region. The quarter recorded a significant -28% decrease compared to the same period last year, reflecting the ongoing downward trend. Furthermore, the quarter-on-quarter change of -13% highlighted the continued negative sentiment in the market. The comparison between the first and second half of the quarter, showing a -6% difference, reinforced the consistent decline in prices. As the quarter concluded, Propylene Glycol Industrial Grade FOB Rotterdam in Netherlands settled at USD 1390/MT, reflecting the prevailing decreasing pricing environment in the region.
For the Quarter Ending June 2024
North America
In Q2 2024, the Propylene Glycol market in North America experienced a notable downturn, influenced by multiple converging factors. The primary drivers of the decrease in prices were slackened end-user demand, abundant supply, and economic policies aimed at controlling inflation. Persistent weak demand from key sectors such as pharmaceuticals, food, and industrial applications played a significant role in suppressing prices. The economic strategy of maintaining high interest rates to combat inflation indirectly weakened consumer purchasing power, further dampening market demand. Additionally, logistical challenges and geopolitical tensions contributed to an increase in domestic supply, as international buyers exercised caution in placing new orders.
In the USA, which witnessed the most substantial price fluctuations, the overall trend was characterized by a continuous decline. Seasonality effects, compounded by reduced consumer expenditure and a marked decrease in new product orders, exacerbated the downward trajectory. Year-over-year, prices plummeted by -25%, indicating a stark contrast to the previous year's market conditions. Compared to the prior quarter of 2024, the decline was measured at -3%, underscoring a steady downward trend.
The pricing environment in the USA for Propylene Glycol was decidedly negative, culminating in a quarter-ending price of USD 1460/MT for Industrial Grade FOB Los Angeles. This decline reflects the significant challenges faced by the market, driven by persistent supply-demand imbalances and macroeconomic pressures.
APAC
In Q2 2024, Propylene Glycol in the APAC region experienced a predominantly negative pricing environment, with significant declines observed throughout the quarter. The downward trend was primarily driven by several factors: weakening demand from end-user sectors, an oversupply in the market, and global economic uncertainties. Persistent inflationary pressures and high interest rates further exacerbated the situation, discouraging consumer spending and dampening market confidence. Additionally, logistical disruptions, including increased shipping costs and geopolitical tensions, contributed to the negative market sentiment.
Focusing on South Korea, the region saw the most substantial price changes, reflecting the broader trends affecting the APAC region. South Korea's Propylene Glycol market was particularly hard-hit by softened domestic demand, heightened inflation, and a cautious approach from international buyers amidst ongoing economic uncertainties. Seasonality factors, such as decreased industrial activity during summer months, also played a role in the price decline. The quarter concluded with a price of USD 974/MT for Propylene Glycol Industrial Grade FOB Busan in South Korea, encapsulating the overall negative pricing environment that characterized Q2 2024. This consistent decrease in prices highlights the challenging market conditions and emphasizes the prevailing negative sentiment across the region.
Europe
In Q2 2024, Propylene Glycol pricing in the Europe region experienced a significant downturn, primarily influenced by subdued demand across multiple downstream industries, including food, pharmaceuticals, and cosmetics. The market faced additional pressure from escalating inventory levels and reduced order volumes, which compelled suppliers to adjust their pricing strategies downward to stimulate demand. The general weak economic sentiment, compounded by lingering inflationary pressures and high interest rates, further dampened consumer spending, reinforcing the overall bearish market trend. Elevated energy prices and increased shipping costs also strained market conditions, adding to the reduced profitability for businesses and influencing their cautious purchasing behaviors.
Germany, in particular, saw the most pronounced price changes within the region. The overall trend was characterized by a marked decrease in prices, reflecting the national economic challenges. Seasonality factors, including warmer weather leading to reduced demand for antifreeze products, exacerbated the downward trajectory. The correlation between decreased consumer confidence and industrial demand was evident, contributing to a significant price drop of -27% compared to the same quarter last year.
Concluding Q2 2024, the price of Propylene Glycol Industrial Grade FOB Hamburg in Germany stood at USD 1470/MT. This decreasing pricing environment reflects a negative sentiment, driven by macroeconomic uncertainties and sectoral demand constraints, culminating in a challenging quarter for suppliers and buyers alike.
For the Quarter Ending March 2024
North America
In Q1 2024, the pricing of Propylene glycol in the North America region experienced significant fluctuations influenced by various factors, ultimately creating a positive pricing environment. Throughout the quarter, prices consistently increased, largely driven by heightened demand from downstream industries, particularly in the food, pharmaceutical, and healthcare sectors.
Foremost among these dynamics was the persistent escalation in inventory levels juxtaposed with a constricted warehousing capacity, indicating an increasing demand for storage space within the market. This heightened demand for warehousing capacity inevitably led to heightened costs for storage and distribution, expenses that were inevitably transferred to consumers in the form of elevated prices for Propylene glycol. Moreover, a significant driver behind this upward trajectory was the notable surge in demand originating from downstream industries, which placed considerable strain on the already tight supply conditions prevailing in the domestic market, thereby intensifying the pressure on Propylene glycol prices. Despite these challenges, the market situation in the USA remained relatively stable, with a bullish sentiment prevailing. This stability can be attributed to the robust performance of the US economy, characterized by encouraging signs across various fronts, including business activity, consumer sentiment, and inflation.
Overall, the pricing environment for Propylene glycol in Q1 2024 was characterized by positivity, albeit with fluctuations driven by changes in demand and supply dynamics. The quarter-ending price for Propylene Glycol in the USA stood at USD 1630 per metric ton for PG Industrial Grade FOB Los Angeles.
Asia Pacific
In Q1 2024, the Propylene glycol market in the APAC region experienced a mixed pricing environment characterized by fluctuations throughout the quarter. Prices initially decreased in January due to reduced consumption in downstream sectors. The depreciation of the South Korean won against the US dollar led to increased costs for imports, including Propylene glycol, prompting a decrease in demand from consumers and businesses and consequently pushing prices downwards. However, prices surged in February as demand from downstream industries, such as food and pharmaceuticals, experienced a notable increase. This uptick in demand was fueled by an improvement in business sentiments, marked by a notable increase in new orders and inquiries. The positive outlook bolstered overall demand within the domestic market, surpassing available supply levels and resulting in a pronounced surge in Propylene glycol prices. However, prices declined again towards the end of the quarter, attributed to weak consumption seen across various end-sectors, exacerbated by sluggish improvements in financing conditions due to high interest rates. As the quarter comes to a close, the latest price recorded in South Korea for Propylene Glycol Industrial Grade FOB Busan is USD 1050 per MT, reflecting the mixed pricing environment observed throughout the quarter, influenced by changes in demand, currency fluctuations, and financing conditions.
Europe
In the first quarter of 2024, the pricing dynamics of Propylene glycol in Europe unfolded amidst a nuanced backdrop influenced by a myriad of factors. Prices witnessed an uptick driven by geopolitical tensions, logistical hurdles, and constrained inventories. Heightened demand from the food, healthcare, and pharmaceutical sectors further influenced market dynamics. Moreover, the depreciation of the Euro against the US Dollar during this period played a role in driving prices upward. This depreciation resulted in more favorable export costs for Propylene Glycol, consequently boosting demand in the international market. Moreover, the latest data indicates a decrease in inflation across the Eurozone, including the Netherlands, suggesting reduced financial strain on consumers, which further stimulated the demand for Propylene Glycol and subsequently raised prices. Additionally, the rise in prices of raw material, propylene oxide, further supported this upward trajectory. Market participants, cognizant of the supply-demand dynamics and anticipating future price hikes, focused on replenishing their inventories, intensifying the upward trajectory of Propylene Glycol prices. In conclusion, the quarter-ending price for Propylene Glycol Industrial Grade in the Netherlands stood at USD 1710/MT FOB Rotterdam.
