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.
For the Quarter Ending December 2023
North America
Propylene Glycol (PG) prices in North America during Q4 2023 witnessed a bearish trend, with a decline in prices due to weak demand and surplus supply. The demand for PG in the US market remained subdued, influenced by escalating inflation, elevated interest rates, and geopolitical uncertainties. The continuous availability of PG in the US market was sustained due to lower domestic and overseas demand, resulting in a moderate to high supply.
The market situation remained bearish, with market participants focusing on destocking of old inventories. Additionally, the slowdown in inflation observed in Q4, characterized by a notable decrease in gasoline and energy prices, played a role in reducing business and shipping costs, further influencing the downward trend. Furthermore, the decline in Propylene oxide, a crucial raw material, prices due to a decrease in inquiries from downstream industries, also contributed to the overall bearish market sentiments.
The US witnessed the maximum changes in prices, with a trend of decline and a seasonality of lower demand. The correlation price percentage was negative, indicating a decline in prices. The percentage change in prices from the previous year was -41%, and from the previous quarter, it was -14%. The price percentage comparison of the first and second half of the quarter in the US was -7%. The quarter ending price of PG Industrial Grade FOB Los Angeles in the US was USD 1525/MT.
APAC
The fourth quarter of 2023 was challenging for the Propylene Glycol market in the APAC region. Weak demand from the domestic market and a lack of major orders from export markets were the primary reasons for the decline in prices. Supply was moderate to high, with ample availability in the Chinese and Singaporean markets due to increased production activity and decreased export to other nations. In South Korea, prices of Propylene Glycol FOB Busan fell by 7.69% in December, indicating a downward trend in the market. The abundant supply in the domestic market, coupled with a slowdown in demand from various industries, contributed to the price decline. Furthermore, disruptions in the global supply chain, arising from tensions in the Red Sea, affected the exports of Asian countries. This, in turn, resulted in the accumulation of inventories, exacerbating the decline in Propylene glycol prices. Compared to the same quarter last year, prices have decreased by 52%, reflecting the ongoing challenges faced by the market. Additionally, there was a 23% decrease in prices from the previous quarter, highlighting the continued downward trend. As of the end of the quarter, the latest price of Propylene Glycol Industrial Grade FOB Busan in South Korea was USD 1080/MT.
Europe
The Propylene Glycol market in Europe during the fourth quarter of 2023 witnessed several significant factors that impacted prices and market dynamics. Firstly, there was moderation in inflation in the Netherlands during October, fostering increased consumer confidence and contributing to the upward movement in Propylene glycol prices. However, prices declined afterwards due to weak demand from both domestic and international markets. Furthermore, the availability of adequate supply in the market also contributed to the declining prices. Focusing on the Netherlands, which experienced the most significant price changes, the market showed a consistent downward trend throughout the quarter. The price of Propylene Glycol Industrial Grade FOB Rotterdam in the Netherlands decreased by -23% compared to the same quarter last year. Moreover, there was a -10% decrease in prices from the previous quarter of 2023. However, no substantial price difference was observed between the first and second halves of the quarter in the Netherlands. Overall, the Propylene Glycol market in Europe faced challenges due to factors such as weak demand, and adequate supply. These factors resulted in declining prices throughout the quarter. The latest price of Propylene Glycol Industrial Grade FOB Rotterdam in the Netherlands for the current quarter is USD 1690/MT.
For the Quarter Ending September 2023
North America
The prices of Propylene glycol declined by 2.87% in September compared to the levels noted in July. The third quarter saw a slowing in the growth of US company operations as a result of lower demand from both domestic and worldwide markets. In the United States, inflation climbed to 3.7% in August for the first time since June 2022, as a strong rise in energy prices pushed prices higher near the end of the summer, impacting even more on consumer confidence. Inflationary pressures suggest that the US economy is moving away from the Federal Reserve's 2% target rate, pushing officials to contemplate hiking interest rates later this year. The Federal Reserve hiked its key policy interest rate by 0.25 percent in July, the eleventh time in 17 months, to combat persistent inflation in the US economy, which has resulted in lower market demand. Rising fuel prices and high interest rates contributed to heightened economic uncertainty and weaker consumer confidence in September. Manufacturers reported another drop in new orders, with the greatest pace of contraction contributing to the negative trend. As a result, firms have been forced to liquidate their amassed inventory and stock in order to maintain profitability.
Asia Pacific
Propylene glycol prices showcased the mixed pattern in the Chinese market throughout the third quarter. Propylene glycol prices fell by 5.19% in July as plant activity slowed due to a drop in downstream industry demand. Furthermore, the Chinese yuan strengthens against the US dollar, making Propylene glycol more expensive in international markets, resulting in a further decline in foreign market demand for Propylene glycol. Market suppliers increased their priority to destocking in order to minimize inventory and maintain profit margins. According to data released by the National Bureau of Statistics (NBS), the official manufacturing purchasing managers' index (PMI) increased marginally to 49.7 in August from 49.3 the previous month. The minor increase in the PMI shows that the pace of new orders and purchases increased slightly in August compared to the previous month, resulting in a 0.39% increase in Propylene glycol pricing. China's central bank slashed key interest rates amid economic concerns, bolstering domestic consumer demand. In September, industry output and new orders continued to thrive in a wealthy domain. However, foreign demand has not been as strong, as the export orders index has contracted for the third consecutive month, resulting in a 4.36% drop in propylene glycol prices.
Europe
Propylene glycol prices in Germany have been declining since the beginning of the third quarter, with a 3.49% decline recorded in September. The purchasing managers' index (PMI) in Germany was 41 in July, indicating a continued decline in new orders from both domestic and worldwide markets, despite ample stocks available among market players. Furthermore, the month of August saw a continued lack of consumer confidence as a result of the steady increase in interest rates, surging inflation, the ongoing energy crisis, and the complexities of global affairs. The continual rise in inflation, mostly due to the excessive prices of energy supplies and oil, harmed consumer purchasing power and led to the downward trajectory of Propylene glycol prices. Germany's industrial sector, which accounts for around one-fifth of the nation's economy, remained in a downturn in September, owing to slow demand and rapidly dropping output, which also caused Propylene glycol prices to fall. In September, the European Central Bank agreed to raise interest rates for the eleventh time in a row to battle persistent inflation, which has maintained market demand on the low side and sustained the downward trend.
For the Quarter Ending June 2023
North America
In the United States, propylene glycol prices showcased mixed trends in the second quarter. Prices rose 0.78% in May as increased end-user demand coupled with inventory replenishment activity and new inventory, keeping the market on the north side. The manufacturing PMI (Purchasing Managers Index) hit 48.4 in May, indicating a slowdown in the US manufacturing sector. This shows that supply from manufacturers and suppliers has been constrained due to reduced business activity. But consumer demand remained strong, leading to higher propylene glycol prices in May. In contrast, prices fell 1.94% in June from May due to a sluggish decline in demand from end-user industries. The US Manufacturing PMI (Purchasing Managers Index) fell to 46.3 in June from 48.4 in May, explaining the drop in purchasing activity and new orders. The consumer price index (CPI), a measure of inflation, rose 0.2% in June from 0.1% in May, suggesting inflation slowed in June as a result of the Federal Reserve's high-interest rates. This has reduced demand from end sectors, putting downward pressure on propylene glycol prices.
Asia Pacific
Prices for Propylene Glycol in China showcased mixed trends in the second quarter. Propylene Glycol prices rose 1.78% in May, contrasting with April levels due to consistent demand in the domestic market and ongoing operational activity. China's Purchasing Managers Index (PMI) fell to 48.8 in May from 49.2 in April, signaling a slowdown in manufacturing activity, leading to fewer inventories among market manufacturers and suppliers to fulfill the strong demand in the market, driving the prices upward. In contrast, Propylene Glycol prices fell 2.62% in June from May as new order follow-up and consumer purchasing activity slowed. China's manufacturing PMI (Purchasing Managers' Index) settled at 49 in June from 48.8 in May. This indicates that the Chinese post-pandemic recovery slowed down because of deterioration in the manufacturing sector. Demand from downstream industries has declined with decreased new orders, purchasing activity, and export sales. Exports also declined by 12.4% in China, which increased the supply of propylene glycol in the Chinese market, adding downward pressure on prices. Apart from that, the prices of raw material propylene oxide also decreased, which also led to decreased prices of propylene glycol.
Europe
In Germany, the situation of the propylene glycol market showcased a mixed trend during the second quarter. Prices rose slightly in May to 0.81% from April, then fell to 3.20% in June. Prices rose in May due to limited inventories among traders and suppliers, coupled with increased demand from end-user industries. The German Manufacturing Purchasing Managers' Index (PMI) fell to 43.2 in May from 44.5 in April, reflecting weaker business activity and lower inventories of market participants as shipments were delayed to meet existing demand, leading to increased propylene glycol prices. In June, the German economy was hit by rising inflation and an interest rate hike by the European Central Bank, leading to higher food and energy prices. This has increased the cost of living and reduced consumer purchases, supporting a downward trend in propylene glycol prices. In addition, the appreciation of the Euro against the US dollar in June made imports cheaper and also increased the supply of propylene glycol in the German market. In addition, the price of propylene oxide, the raw material of propylene glycol, also fell, which ultimately supported the downtrend in propylene glycol prices.
For the Quarter Ending March 2023
North America
During the first quarter of 2023, Propylene Glycol showcased irregular market sentiment in the North American region. Due to falling feedstock prices for propylene oxide, Propylene Glycol prices started declining at the beginning of the quarter and continued until the end of January. Almost all of the inventory offered by domestic retailers had been consumed in the meantime by constant demand from the end-user pharmaceutical, food, and cosmetic sectors, which kept prices stable. However, the pricing trend altered in the second month of Q1, and Propylene Glycol prices started to rise sharply on the domestic US market. The rise in upstream WTI Crude oil prices finally led to an increase in the price of the feedstock propylene oxide, which had a beneficial effect on the cost of generating the chemical for the domestic market. Parallel to this, the downstream market fluctuated in a lower range throughout the quarter's final month, strengthening the downward trend even more. Thus, prices of Propylene Glycol will be evaluated at USD 2290/MT for industrial grade and USD 2405/MT for pharma grade by the end of March 2023 in the USA.
Asia- Pacific
In the first quarter of 2023, Propylene Glycol prices drastically fluctuated in the Asia- Pacific region. Prices decreased during the first month as a result of dropping manufacturing costs for Propylene Glycol brought on by lower costs for the raw materials propylene oxide and natural gas. The demand and orders from these sectors, however, began to incline during the second month and continued to incline throughout the quarter due to the lackluster market performance of the pharmaceutical and cosmetics sectors in terms of sales and industrial output. Additionally, the expansion of the Chinese economy increased consumer spending in both domestic and foreign markets. As a result, producers received less benefit from material overproduction. Therefore, the evaluated price of Propylene Glycol prices in China was USD 1437/MT FOB-Qingdao and USD 1346/MT Spot FOB-Qingdao by the end of the quarter.
Europe
Like North America, the European region also resembled a declining pricing trend of Propylene Glycol throughout the first quarter of 2023. Due to a drop in feedstock costs, Propylene Glycol started to reduce at the beginning of the quarter. By the end of March 2023, statistics for industrial grade and pharmaceutical grade showed a decline of around, with weak demand from the end-user pharmaceutical and industrial sector as support. Additionally, supply chains began to function properly in March as a result of higher yard occupancy and fewer port bottlenecks, enabling a consistent flow of goods to the local and global markets. Domestic producers cut back on production as the year-long destocking season of previously amassed inventories got underway in March. The manufacturers' main concerns were clearing the shelves for new products and selling off existing inventories. Thus, in March 2023, Propylene Glycol prices settled at USD 2360/MT for industrial grade and USD 2550/MT for pharma grade.
For the Quarter Ending December 2022
North America
During the fourth quarter of 2022, Propylene Glycol showcased irregular market sentiment in the North American region. At the start of the quarter, Propylene Glycol prices rose slightly and continued until the end of November due to increasing feedstock Propylene oxide prices. Meanwhile, consistent demand from end-user pharmaceutical, food, and the cosmetic sector had absorbed almost every inventory available among domestic retailers and kept prices firm. However, in the last month of Q4, the price trend changed, and Propylene Glycol prices declined drastically in the US domestic market. The feedstock Propylene Oxide prices were eventually reduced due to the decline in upstream WTI Crude oil prices, negatively impacting production costs. Simultaneously, the downstream market wavered in a lower range. Thus, prices of Propylene Glycol will be evaluated at USD 2810/MT for industrial grade and USD 2930 /MT for pharma grade by the end of December 2022 in the USA.
Asia- Pacific
In the fourth quarter of 2022, Propylene Glycol prices drastically decreased in the Asia- Pacific region. Prices got cheaper month by month due to the reduction in feedstock Propylene Oxide cost along with crude oil and natural gas values, which resulted in falling production cost of Propylene Glycol. However, due to the underwhelming market performance of the cosmetics and pharmaceutical sectors in terms of sales and industrial output, demand and orders from these sectors declined. Moreover, the slowdown in the Chinese economy amid the resurgence of Covid-19 cases triggered purchaser spending from local and international markets on the downward side. As a result, the overproduction of material became less beneficial to producers. Therefore, the evaluated price of Propylene Glycol prices in China was USD 1585/MT FOB-Qingdao and USD 1500 /MT Spot FOB-Qingdao by the end of the quarter.
Europe
Like North America, the European region also resembled the same pricing trend of Propylene Glycol during the fourth quarter of 2022. Entering the quarter, Propylene Glycol began to increase due to an increase in feedstock cost. The statistics revealed a rise of about 7.1 % for industrial grade and 5.6% for pharma grade by the end of November 2022, supported by high demand from the end-user pharmaceutical and industrial sector. Later, Propylene Glycol severely shifted its pricing dynamics toward the lower side in December as manufacturers faced weak demand ahead of the upcoming Christmas Holiday. Also, supply chains started to run normally in December due to decreased yard occupancies and fewer port congestions, ensuring a steady flow of products to the regional and international markets. As the year-long destocking season of previously accumulated inventory began in December, domestic manufacturers reduced production. The manufacturers were primarily concerned about selling off their stockpiles and clearing the shelves for new production. Thus, in December 2022, Propylene Glycol prices settled at USD 2860/MT for industrial grade and USD 3050/MT for pharma grade.
For the Quarter Ending September 2022
North America
During the third quarter of 2022, a fluctuation in the pricing trend for Propylene Glycol was seen in North America. Propylene Glycol prices declined consistently throughout the first half of the quarter due to the reduction in feedstock Propylene Oxide prices brought on by weak upstream pricing. Simultaneously, increased inventory levels due to decreased product offtakes from the regional market negatively affected Propylene Glycol prices. However, in the final month of the quarter, the price trend shifted, and Propylene Glycol prices rose until the end of Q3 due to an increase in the feedstock prices which caused a spike in production costs. At the same time, the demand was moderate from end-user pharmaceutical and food additives industries. Thus, Propylene Glycol prices in the USA settled at USD 3085/MT for industrial grade and USD 3233/MT for pharma grade by the end of September 2022, after a decrement of 2.2% in the previous quarter’s discussions.
Asia- Pacific
In the third quarter of 2022, the Asian market showcased a fluctuating price movement of Propylene Glycol, likewise the North American market. Initially, the prices fell drastically by 6.3% for USP grade in the H1 of Q3 2022 because of decreased feedstock Propylene oxide costs. Also, market participants maintained the weak pricing sentiment in the domestic market due to a cautious purchasing mentality from the downstream pharma and cosmetics industries. However, in the last month of the quarter, the Propylene Glycol price trend revived, and prices soared till the end of the quarter due to increased upstream price quotations by the exporters, which boosted the production costs. Also, the Propylene Glycol inventory levels were affected as the plant went under shutdown in August. At the end of Q3, China’s Propylene Glycol prices settled at USD 2090/MT FOB-Qingdao and USD 2035/MT Spot FOB-Qingdao.
Europe
A variation in the price trend of Propylene Glycol was observed in Europe during Q3 of 2022. In the H1 of the quarter, Propylene Glycol prices in Germany declined by 8.5% for industrial grade and 7.1% for pharma grade due to numerous factors, including lower feedstock costs caused by high domestic upstream supplies, sluggish demand from end-user pharmaceutical industries and ample product availability. Also, the elevated inflation rates, and worsening economic conditions, devalued the Euro compared to the US Dollar. Later, in the H2 of Q3, the price trend shifted, and Propylene Glycol prices increased until the end of the quarter because feedstock Propylene oxide costs surged and product demand from downstream producers improved. Thus, in September 2022, Propylene Glycol prices settled at USD 3003/MT for industrial grade and USD 3236/MT for pharma grade.
For the Quarter Ending June 2022
North America
In North America, the price trend for Propylene Glycol followed an upward trajectory because of bullish market sentiments in the second quarter of 2022. The cost support from feedstocks such as Propylene and Propylene Oxide remained high, strengthening the domestic producers and raising the Propylene Glycol prices in the region. In terms of supply, there were limited inventories in the market, and suppliers could not meet soaring demand from downstream pharmaceutical and personal care industries in regional and overseas markets positively affected the Propylene Glycol market. Robust trade activity in countries like Canada and Mexico also impacted propylene glycol prices. This quarter, the prices of Propylene Glycol in the United States increased by 12.4% compared to the previous quarter. By the end of the quarter, the price got settled at USD 3325/MT with stagnant market dynamics.
Asia- Pacific
During the second quarter of 2022, the Propylene Glycol market exhibited bearish market sentiments across the Asia Pacific region, opposite the Northern and American markets. The upstream feedstock Propylene prices consistently fluctuated in the Asian market, and the cost support weakened. In Asia, the supply of Propylene Glycol in downstream pharmaceutical industries was relatively abundant in the regional market. The sinking trading atmosphere due to reduced imports from overseas prompted decreased propylene glycol prices in India. The costs of Propylene Glycol in the Indian market consistently staggered downwards and dropped drastically by 12.6% this quarter. By the end of the quarter, the market started to get better slightly, with prices assessed at INR 212847/MT Ex- Mumbai due to improving demand and supply shortages.
Europe
During the second quarter of 2022, the Propylene Glycol market witnessed favorable sentiments in the European market due to surging input costs. Demand buoyancy from the downstream pharmaceutical and personal care sector emphasized the price value of Propylene Glycol and fueled its market growth. With the onset of Q2, the increment in the raw material Propylene and Propylene Oxide prices had impacted the market of Propylene Glycol, which further levied its impact on the offers for the pharma and industrial grade with soaring offers of crude oil in the European market. By the termination of Q2, Propylene Glycol prices slightly dropped as traders were reluctant to stock out the existing inventories to initiate new production. As per the data, the FOB Hamburg prices of Propylene Glycol for pharma grade in Germany settled at USD 3405/MT.
For the Quarter Ending March 2022
North America
In the first quarter, the Propylene Glycol market in the North American region remains bullish throughout the quarter. In the first half of the quarter, the feedstock Propylene shortages batter down the production rates in one of the most extensive facilities after the fire broke out in December last week. The cost support from the upstream energy values staggers on a higher trajectory as the OPEC+ alliance stagnant on the decision to slowly increase the crude oil production against the rapid growth in demand, followed by the commodity gyration due to the conflict in the eastern European region. Such development in the outlook supported producers' will to raise the offered quotations for Propylene Glycol, and the FOB West Coast discussions for PG Pharma Grade in March assessed at USD 3055 per tonne.
Asia Pacific
In the first quarter of 2022, the Propylene Glycol market in the Asia Pacific region witnessed a significant increment in the market dynamics as the cost support from the upstream and feedstock persistently soared. Such market sentiments were majorly favored by the hiked crude oil offers amidst the absence of Russian Crude Oil. Whereas the Chinese Lunar New Year holidays followed by the Winter Olympics-related restrictions on the production rates kept the market outlook suppressed in China, the arbitrage remains silent. In addition, the resurgence of COVID in China levies a profound impact on the market sentiments besides suppressing the margin, and the FOB Qingdao discussions for USP grade were settled at USD 2701 per tonne during the quarter ending March 2022.
Europe
The Propylene Glycol market in Europe observed mixed sentiments based on the grades of Propylene Glycol in the German domestic market. The decrement in the temperature impacted inquiries from the antifreeze sector, which further levied its impact on the offers for the industrial-grade, despite the soaring offers of Crude Oil and upstream in the European market. Whereas the special military operation carried out by Russia over Ukraine and the sturdy stance of the European nations against such a move had impacted the market dynamics tangentially besides adding the upstream energy value to historic highs. As a ripple effect, the commodity gyration brought several turmoils in the producer's quotations, with the FOB Hamburg discussions for March settling at USD 3136 per tonne.
For the Quarter Ending March 2022
North America
In the first quarter, the Propylene Glycol market in the North American region remains bullish throughout the quarter. In the first half of the quarter, the feedstock Propylene shortages batter down the production rates in one of the most extensive facilities after the fire broke out in last week of December. The cost support from the upstream energy values staggered on a higher trajectory as the OPEC+ alliance stagnant on the decision to slowly increase the crude oil production against the rapid growth in demand, followed by the commodity gyration due to the conflict in the eastern European region. Such development in the outlook supported producers' will to raise the offered quotations for Propylene Glycol, and the FOB West Coast discussions for PG Pharma Grade in March were assessed at USD 3055 per tonne.
Asia Pacific
In the first quarter of 2022, the Propylene Glycol market in the Asia Pacific region witnessed a significant increment in the market dynamics as the cost support from the upstream and feedstock persistently soared. Such market sentiments were majorly favored by the hiked crude oil offers amidst the absence of Russian Crude Oil. Whereas the Chinese Lunar New Year holidays followed by the Winter Olympics-related restrictions on the production rates kept the market outlook suppressed in China and the arbitrage remained silent. In addition, the resurgence of COVID in China levied a profound impact on the market sentiments besides suppressing the margin, and the FOB Qingdao discussions for USP grade were settled at USD 2701 per tonne during the quarter ending March 2022.
Europe
The Propylene Glycol market in Europe observed mixed sentiments based on the grades of Propylene Glycol in the German domestic market. The decrement in the temperature impacted inquiries from the antifreeze sector, which further levied its impact on the offers for the industrial-grade, despite the soaring offers of Crude Oil and upstream in the European market. Whereas the special military operation carried out by Russia over Ukraine and the sturdy stance of the European nations against such a move had impacted the market dynamics tangentially besides adding the upstream energy value to historic highs. As a ripple effect, the commodity gyration brought turmoils in the producer's quotations, with the FOB Hamburg discussions for March settling at USD 3136 per tonne.
For the Quarter Ending December 2021
North America
The Propylene Glycol market in North America projected soaring price trends during October due to strong propylene oxide and propylene feedstock supported by skyrocketing upstream crude oil prices which continued from the previous quarter. With force majeures in many US facilities owing to the damages inflicted by the Ida hurricane widened the supply gap in the country. However, refiling of the crude oil inventories by the coordinated release of strategic reserves and recovering hurricane-impacted plant operations enabled the manufacturers to witness some relief in November. Nevertheless, the market got surrounded by renewed tightness in propylene feedstock supply due to curtailed operations following a fire explosion in ExxonMobil’s Baytown facility, consequently leading the prices to rise again settling between USD 2895/MT and USD 3055/MT FOB West Coast. The demand for Propylene Glycol in the pharma sector remained sturdy throughout the fourth quarter of 2021.
Asia
Facing the brunt from surging raw material costs supported by their tightness and high freight charges the prices of Propylene Glycol in the Asian Market reached the year’s highest value during October. Price shocks in China also arose from the “Dual Control Policy” implemented by the Chinese government for energy rationing which forced the manufacturers to reduce the operating rates in their facilities. The average prices of Propylene Glycol tumbled in November despite the still robust pharma sector demand on receding supply chain woes which enabled the propylene oxide feedstock to reach their destination. The continuously dropping raw material prices drove the December discussions of Propylene Glycol in China and India to hover around USD 2824/MT FOB Qingdao and USD 3376/MT FFG Ex-Delhi NCR, respectively. The negative growth in the automotive industry owing to chip shortage slowed the propylene glycol applications in the antifreeze market to a certain extent.
Europe
The European Propylene Glycol market remained under a tight spot throughout the fourth quarter of 2021. The prices of Propylene Glycol rose incessantly due to the double whammy from surging feedstock costs and the catastrophic energy crisis which inflated the input costs. The demand in the pharmaceuticals sector showed an unprecedented rise during the second half of the quarter with quickly spreading Omicron variant in the region. The Propylene Glycol spot prices also remained high due to supply chain disruptions in the initial part of the quarter and Coronavirus-induced transport restrictions towards the end of the quarter. In Germany, the average FOB Hamburg prices were assessed at USD 2670/MT in December.
For the Quarter Ending September 2021
North America
The prices of Propylene Glycol remained bullish in the North American region during the third quarter of 2021. A raw material supply crunch and buoyant demand from the pharma industry pushed up the price curve of Propylene Glycol. Disruptions in production due to Hurricane Ida which made landfall on the U.S. Gulf Coast on Sunday, August 29 added to the supply tightness in the region. As per market sources, the consistent increase in the prices is strongly tied to acute shortage of feedstock Propylene Oxide (PO) and continued operational setbacks. Demand stood firm from the Unsaturated Polyester Resins (UPR) sector during the quarter. Dow chemicals had declared a force majeure at its PO facility in mid-August which further added to the manufacturer’s woes. The Propylene Glycol (PG) Industrial Grade price was assessed at $2520/mt in August, up by about 7% over the levels observed in July. Highly imbalanced demand-supply prompted several North American PG producers to positively revise offers for several grades of Propylene Glycol with effect from September.
Asia Pacific
The market outlook of Propylene Glycol in the Asia Pacific region remained positive in the third quarter of 2021 on the back of a consistent demand from the downstream sectors. The price of feedstock propylene oxide had risen sharply impacting the prices of propylene glycol in Q3 of 2021. In China, the domestic Propylene Glycol market witnessed a revived demand since the beginning of July. The shutdown of factories in Shaanxi and Shandong for maintenance led to a decrease in supply while demand from the pharmaceutical market remained firm leading to a spike in prices. In India, the Ex-Mumbai price was last assessed at USD 3378 per MT in September.
Europe
The prices of Propylene Glycol demonstrated an increase in Q3 of 2021 followed by increased demand from the end user industry in Europe. European propylene glycol spot prices continued their downtrend for H2 followed by an improved supply across the region. Demand remained stable from the regional market as the offtakes remained steady from the downstream pharmaceutical and personal care sector in Q3.
For the Quarter Ending June 2021
North America
During the second quarter of 2021, the supply conditions of the Propylene Glycol (PG) in the North American region improved, as a ripple effect of the improved operating efficiency at several Propane Dehydrogenation (PDH) units, refineries, and crackers in the US Gulf region. Although the regional industrial infrastructure recovered from the impact of winter storm Uri, several PG manufacturers still struggled to operate at normal efficiency. Dow Chemical surged the prices of all grades of Propylene Glycol (PG) by USD 221 per tonne effective from the June starting. Overall, in June the FOB Connecticut (USA) contractual price of Mono Propylene Glycol (MPG)-pharma grade was assessed at USD 2795 per tonne observing a decrement of USD 45 per tonne from the prices in March.
Asia Pacific
Impacted by lacklustre buying sentiments amidst the second COVID wave in India, the Propylene Glycol (PG) supply outlook remained severely curtailed in the Southeast Asia region due to persistent raw material shortage. Majority of the orders in Northeast Asia and China were placed from the pharmaceutical and personal care industry. Supplies in China were strong enough to cope with the enquiries from the downstream pharma sector. Some Chinese buyers were reluctant to procure the high-cost Propylene amidst rising inflation rate in China. Pricing trend in China showed mixed results as it plunged to January level in first half and then again started to strengthen in later half with FOB Tianjin Propylene Glycol (PG) pharma grade prices settling at USD 2930 per tonne in June.
Europe
Propylene Glycol (PG) supplies remained constrained in the second quarter of 2021, owing to the turnaround in major steam crackers in Northwest Europe which curtailed the availability of the key feedstock Propylene in the European region. However, some easiness was witnessed as the no of Propylene Glycol (PG) shipments from the USA improved over the previous quarter. As a repercussion, the prices remained on an uptrend amidst the supply demand imbalance. Demand outlook was firm from the regional market as the offtakes were constant from the downstream pharmaceutical and personal care sector.
For the Quarter Ending March 2021
North America
During the first quarter of 2021, Propylene Glycol supplies remained affected, carrying forward the previous disruptions. As in the first half of the Q1, a major plant was on a maintenance turnaround causing tightness in the feedstock accessibility, further the extreme freeze weather conditions throughout US gulf region resulted in production disruptions in the mid-quarter. Demand, however surged as the winter season hit the region, thereby improving the consumption from the antifreeze sector. Surged demand and constraint supplies hiked the prices of Propylene Glycol in the North American region. In March, Dow Chemicals increased the prices of Propylene Glycol by USD 22/Ton for both the grades.
Asia-Pacific (APAC)
Supplies of Propylene Glycol in the Asia Pacific region were tight, owning to limited availability of the feedstock, due to planned plant turnarounds at several production plants, followed by slump in imports from the Middle East. During mid-February, the production was further constrained as a result of supply side issues due to the Chinese New Year holidays. Demand remained spiked throughout the quarter, as the consumption from the downstream antifreeze and pharma sector surged. Inclined feedstock cost and low production spiked the prices of Propylene Glycol throughout the region. In India, the prices in March were recorded at USD 1399/ton on CFR basis.
Europe
The supplies in the European region remained constrained throughout the Q1 2021, due to the limited availability of feedstock, followed by the major portion diverted towards the polyols production. Furthermore, supplies remained pressured under 50% decline in imports from the US over the previous quarter and Middle East, where a major petrochemical plant declared turnaround in February. However, the demand spiked, as the consumption from the antifreeze sector increased amid due to the winter season.
For the Quarter Ending December 2020
North America
During the first half of Q4, Propylene Glycol demand tightened due to moderate weather conditions throughout the US and travel restrictions due to surging COVID-19 cases. Early in Q4, supply in the US Gulf region was impacted by the production issues reported at the manufacturing facilities. In October, LyondellBasell declared force majeure at its upstream Propylene Oxide facility in Pasadena (Texas) which significantly impacted the production of Propylene Glycol and other downstream products in the region. Some facilities which were damaged by ‘Hurricane Laura’ in late August were heard getting repaired by the mid of Q4, thereby soothing of product supply late in the quarter. By the end of Q4, major players observed considerable improvement in the demand from the antifreeze sector due to winter season. However, demand remained pressured compared to the previous year.
Asia-Pacific (APAC)
The supply of Propylene Glycol remained short in Q4 2020 due to turnarounds at the upstream Propylene Oxide facilities which trimmed its accessibility, thereby hampering the production of both Mono-Propylene Glycol and Di-Propylene Glycol. Squeezed supply of the industrial grade Propylene Glycol from China, resulted in regional shortfall of the product. The quarterly demand from the anti-freeze sector remained well supported from the Aviation Industry as the region experienced chilly winters. In the Indian market, the Propylene Glycol prices witnessed slight decrement in the first half of Q4, then constant increment throughout the quarter maintained an average price USD 1275/MT and is estimated to rise in upcoming months.
Europe
The European Propylene Glycol market faced tightness in Q4 mainly because of reported shortage of the feedstock Propylene Oxide as its volumes were heard getting diverted towards the polyols production. Sudden spike in the product prices across the Asian markets and seasonal hurricanes in the US surged trade enquiries from the European region. Demand for Di-Propylene Glycol from the fragrance sector remained healthy and the pharmaceuticals sector witnessed an enormous spike for combating the spreading of the COVID-19 virus. Demand for Mono-Propylene Glycol from the anti-freeze sector surged during winters despite grappling to combat uncertainties due to the second lockdown imposed across Europe because of new COVID variant. This led to panic regarding securities of supply despite appreciable demand outlook.
