For the Quarter Ending September 2024
North America:
In Q3 2024, the North American Triethylene Glycol (TEG) market experienced a notable decline in prices, driven by several interrelated factors. Limited procurement activities and subdued demand from key downstream sectors, particularly in antifreeze and resin production, exacerbated the negative pricing environment. This situation was further complicated by disruptions in production facilities caused by severe weather events and hurricanes, which led to operational inefficiencies and reduced offtake of TEG.
The USA exhibited the most significant price fluctuations within the region, with TEG prices decreasing by 3.5% compared to the previous quarter. This downward trend reflected broader market challenges, including difficulties in the construction sector, elevated interest rates affecting homebuilders, and a slowdown in chemical exports. Notably, despite this quarterly decline, TEG prices rose by 22% compared to the same quarter last year, indicating underlying volatility within the market.
By the end of the quarter, Triethylene Glycol prices settled at USD 1216/MT DEL Texas, highlighting the prevailing negative sentiment and illustrating the complex dynamics shaping the current pricing environment in North America.
APAC
In Q3 2024, the APAC region witnessed a substantial decline in Triethylene Glycol (TEG) prices, with China experiencing the most pronounced fluctuations. This bearish market sentiment was primarily driven by weak demand from downstream industries, particularly in resin production and the end use construction sector, which faced a notable downturn. As these sectors struggled, an oversupply in the market emerged, further exerting downward pressure on TEG prices. Additionally, lower feedstock costs compounded the challenges faced by manufacturers and suppliers. This reduction in input costs did not stimulate demand, as buyers remained cautious, opting to reduce inventory levels rather than make new purchases. In China, a key player in the APAC TEG market, prices dropped by 12% compared to the previous quarter, reflecting the prevailing market conditions. However, on a year-on-year basis, TEG prices remained elevated, showing an 18% increase compared to the same quarter last year. The quarter concluded with TEG priced at USD 1380/MT CFR Qingdao, highlighting the ongoing difficulties in the pricing environment.
Europe
Throughout Q3 2024, the Triethylene Glycol (TEG) market in Europe experienced a significant decline in prices, with Germany facing the most pronounced fluctuations. Several key factors contributed to this downward trend. Reduced demand from downstream industries, particularly in the automotive and construction sectors, alongside a general softening of market sentiment, played a crucial role in exerting downward pressure on prices. Additionally, a surplus in supply, bolstered by steady production rates, further intensified the price decline. The quarter also observed a notable correlation between lower crude oil prices and diminished TEG offtake, which adversely affected the overall pricing environment. In Germany, TEG prices recorded a substantial decrease of 11.5% compared to the previous quarter. Interestingly, despite this decline, TEG prices surged by 10% compared to the same quarter the previous year, highlighting the inherent volatility in the market dynamics. Ultimately, the quarter concluded with TEG priced at USD 1650/MT CFR Hamburg, reflecting the ongoing negative pricing sentiment that permeated the region throughout the period.
For the Quarter Ending June 2024
North America
In Q2 2024, the North American Triethylene Glycol (TEG) market witnessed a marked downturn in pricing, driven by a confluence of factors that fostered a bearish sentiment throughout the quarter. A significant oversupply scenario, aggravated by robust inventory levels and efficient production rates, predominantly influenced the market. The upstream influence of stably priced Ethylene Oxide feedstock further exerted downward pressure on TEG prices. Weak demand from crucial downstream sectors, notably the gas and automotive industries, compounded the price decline. This was underscored by a notable contraction in factory activity and broader economic headwinds.
Focusing on the USA, the epicenter of these price fluctuations, TEG prices consistently trended downward. The quarter experienced a pronounced negative pricing environment, exacerbated by seasonal factors such as reduced heating needs and lower antifreeze demand.
Compared to the same quarter of the previous year, the prices for the Tri ethylene Glycol increased by 35%. The overall trend indicated a -1.5% change from the preceding quarter, showcasing the sustained bearish market conditions. Conclusively, the quarter ended with TEG prices at USD 1348/MT FOB Houston in the USA, underscoring the negative pricing environment that characterized Q2 2024.
Europe
In the second quarter of 2024, the Triethylene Glycol (TEG) market in Europe showed varied pricing trends. Early in the quarter, prices in Europe increased, driven by factors such as strong downstream demand and supply disruptions, including planned maintenance shutdowns at INEOS Group Limited's Cologne and Dormagen plants. These localized disruptions had a temporary impact on supply chains, but effective inventory management helped mitigate major price fluctuations. However, in the latter half of the quarter, TEG prices began to decline slightly due to insufficient cost support from feedstock and lackluster demand in downstream manufacturing.
Germany experienced the most notable price changes within the region. Despite moderate supply levels, demand for TEG from automotive and oilfield sectors remained subdued, influenced by broader economic conditions and specific downturns in these sectors. This stability was reflected in a modest 1.5% decrease from the previous quarter, with consistent pricing across both halves of the quarter.
Seasonal trends, including reduced activity in downstream industries and slowdowns in construction, also contributed to stabilizing price movements, following historical patterns typical for this period.
Overall, the pricing environment for TEG in Germany was mixed, with the market settling at USD 1892/MT CFR Hamburg by the end of the quarter. This indicates a pricing landscape that, despite facing challenges in supply chains and varying demand, maintained overall stability without significant volatility.
APAC
In the second quarter of 2024, the Triethylene Glycol (TEG) market in the APAC region underwent a significant downturn. This was driven by substantial price decreases resulting from an oversupply and declining demand. Factors contributing to this decline included high inventory levels and reduced usage in key industries like plasticizers and antifreeze. Fluctuating global crude oil prices added further downward pressure on TEG prices. Despite several manufacturing units undergoing maintenance, operational efficiencies and consistent production rates maintained ample supply.
China experienced the most pronounced price fluctuations during this period due to reduced consumption downstream and the impact of competitively priced imports. The country's manufacturing sector also contracted, evident in the Purchasing Managers' Index falling below 50%. This decline highlighted a broader slowdown in industry, intensifying pessimism within the TEG market. The latter part of the quarter saw a sharper decline, with prices decreasing by 9%, indicating a sustained weakening trend.
Overall, the pricing environment for TEG in APAC, especially in China, was notably negative throughout the quarter. As of the quarter's end, the price for Triethylene Glycol CFR Qingdao in China stood at USD 1514/MT, underscoring the ongoing challenges and bearish conditions prevailing in this sector.
For the Quarter Ending March 2024
North America
In the first quarter of 2024, the Tri Ethylene Glycol (TEG) market in North America witnessed significant price fluctuations, particularly in the USA. The overall trend for TEG prices in the region displayed a mix of upward and downward movements, characterized by an increase in the first two months followed by a decline in the last month. Several key factors influenced market prices during this quarter.
A primary driver of the price increase was the supply constraints in the TEG market. Reductions in production capacity and plant shutdowns by major players like Indorama Venture and Dow Chemicals, prompted by severe weather conditions and geopolitical concerns, resulted in a scarcity of TEG in the market. This supply-demand imbalance pushed prices upward. Another contributing factor to the price surge was disruptions in logistics. Heightened shipping expenses, mainly due to shipping companies altering their routes away from the Red Sea, led to prolonged transit times and increased shipping costs. This added to the overall expenses of TEG, further elevating prices.
Examining the price fluctuations within the quarter, TEG prices surged by 30% in January 2024 compared to the previous month. However, in February 2024, prices only increased by 7.7%, and in the last month, prices decreased by more than 10% due to improvements in supply. Overall, the pricing environment for Tri Ethylene Glycol in North America during Q1 2024 exhibited both positive and negative aspects, with prices increasing by around 24% compared to the previous quarter and improving by approximately 40% compared to the same quarter of the previous year.
APAC
The first quarter of 2024 has presented a varied period for Tri Ethylene Glycol pricing in the APAC region, with notable effects observed in China. Market prices have been influenced by several factors, contributing to an overall bullish trend driven by supply constraints, escalating feedstock expenses, and heightened demand from downstream industries. In China, Tri Ethylene Glycol prices have undergone significant fluctuations. In January 2024, prices surged by 27.1%, attributed to global shortages and production shutdowns in major producing nations. This scarcity, combined with increased demand from the oil and gas sector, propelled prices upward. These price dynamics in China reflect broader trends across the APAC region, where the market has grappled with challenges such as shipping disruptions, rising production costs, and fluctuations in feedstock prices. These factors have collectively contributed to a volatile pricing environment. Throughout the quarter, Tri Ethylene Glycol prices in the APAC region have displayed a positive trend compared to the same quarter last year. In summary, the pricing environment for Tri Ethylene Glycol in the APAC region during Q1 2024 can be characterized as bullish yet volatile. Prices in the Chinese market surged by more than 20% in Q1 2024 compared to the previous quarter and improved by approximately 40% compared to the same quarter in the previous year.
Europe
The Tri Ethylene Glycol market in Europe witnessed an overall bullish trend during Q1 2024, with the exception of some price reductions in the initial month of the quarter. Market prices were influenced by several factors, including supply constraints, transportation disruptions, and geopolitical issues. These disruptions led to low supply levels and logistical challenges, consequently driving prices upwards. Moreover, heightened demand from the automotive and manufacturing sectors added to the price volatility. In January, the market experienced a bearish phase, marked by price decreases due to diminished demand from downstream Oil & Gas industries and transportation disruptions stemming from strikes and cold weather conditions. However, in February, prices rebounded as domestic manufacturing industries recovered and demand from the automotive sector surged. The bullish trend persisted into March, with high prices in feedstock contributing to the market's positive momentum. The overall trend in the Tri Ethylene Glycol market during Q1 2024 showed a positive trajectory, albeit with volatility and seasonality playing significant roles in price fluctuations influenced by various external factors. Compared to the same quarter last year, prices saw significant increases, driven by supply constraints and heightened demand. Prices improved by around 6% in Q1 2024 compared to the previous quarter, and by approximately 20% compared to the same quarter of the previous year.
For the Quarter Ending December 2023
North America
In the fourth quarter of 2023, the Triethylene Glycol (TEG) market in North America faced a complex set of factors influencing prices. A tight supply situation, marked by reduced TEG production and increased demand from downstream industries such as oilfield and plasticizer sectors, characterized the market.
Elevated production costs, driven by higher prices of feedstock Ethylene Oxide and Naphtha, further exerted pressure on prices. Positive economic indicators, including consecutive job gains and a stable jobless rate, contributed to increased industrial activities, boosting the demand for TEG. In the second half of Q4 2023, TEG market prices witnessed a decline in November 2023 due to a decrease in the price of crucial feedstock Ethylene and reduced domestic production rates.
Challenges like a shortage of natural gas pipelines, impacting TEG demand as a dehydrating agent, and bottlenecks in the Panama Canal affecting shipments led to increased inventory levels within the country. Overall, the TEG market in North America faced supply constraints, increased demand from downstream industries, and high production costs, influencing prices in Q4 2023. The latest price of Triethylene Glycol FOB Houston in the USA for this quarter is USD 1089/MT.
APAC
In the final quarter of 2023, the Triethylene Glycol (TEG) market in the Asia-Pacific (APAC) region displayed a mix of trends. The market faced challenges with a tight supply situation caused by disruptions in production, attributed to high-priced feedstock and reduced operating rates of TEG units. This resulted in a moderate supply of TEG in the market. Demand for TEG remained at a low to moderate level, with increased off-takes from downstream industries such as oilfield, plasticizer, and preservative sectors. Economic conditions and geopolitical tensions in the region also influenced market dynamics. In China, the TEG market witnessed an upward trend during the quarter, marked by rising prices due to persistent supply tightness and increased production costs driven by higher prices of feedstock, Ethylene Oxide, and Naphtha. Despite challenges such as reduced production activity and concerns over geopolitical conflicts impacting crude oil prices, the demand from downstream industries, particularly the oilfield sector, remained strong. Overall, the TEG market in the APAC region experienced bullish sentiment in second half of Q4 2023, characterized by tight supply, moderate to high demand, and various economic and geopolitical factors influencing market dynamics. The latest price of Triethylene Glycol CFR Qingdao in China for the current quarter is USD 1214/MT.
Europe
Triethylene Glycol (TEG) pricing in the European region during the final quarter of 2023 was shaped by several key factors. The market experienced supply constraints, leading to tight availability of TEG primarily due to reduced operating rates of TEG units. There was a moderate to high demand for TEG from downstream industries, particularly in the oilfield and plasticizer sectors, although overall demand exhibited some fluctuations. In Germany, there were significant changes in TEG prices during the quarter, marked by a bearish trend in November with a substantial 3.5% decline. This downturn was driven by the surplus availability of imported TEG in the German market and a decrease in demand from the oilfield sector due to a decline in European Natural Gas hubs. However, there was a modest improvement in demand from the plasticizer industries, and no plant shutdowns were reported during this period. The quarter-ending price for Triethylene Glycol CFR Hamburg in Germany was USD 1568/MT in the current quarter.
For the Quarter Ending September 2023
North America
Throughout the third quarter of 2023, Triethylene Glycol (TEG) prices in the United States exhibited an upward monthly trend, primarily driven by increased demand from downstream sectors like polyester resins and gas dehydration. The domestic market witnessed a shortage of inventories due to this robust demand, which subsequently led to price increases. Notably, the feedstock Ethylene oxide prices were fluctuating due to decreased demand, linked to raised interest rates and uncertainties in the US market. However, Triethylene Glycol's price trend remained influenced by market demand and low domestic stock levels. Additionally, market supply faced challenges due to a shutdown at Dow's Taft, Louisiana, ethylene oxide unit and a force majeure declaration at Indorama's Port Neches, Texas. These events led to a scarcity of TEG, resulting in higher spot prices. Meanwhile, the inquiries for Triethylene Glycol from the downstream oilfield sector, used in natural gas extraction, remained strong. The plasticizer industries also saw modest improvements in demand, contributing to the overall positive market trend for Triethylene Glycol.
APAC
During the third quarter of 2023, the Chinese Triethylene Glycol (TEG) market experienced a rebound, driven by expensive imports from the USA. Supply cuts in upstream crude oil, along with high raw material prices, pushed up Triethylene Glycol production costs in China. Additionally, the downstream unsaturated polymer market remained subdued in July due to high-temperature weather and the plum rainy season, resulting in low operating rates for ethylene glycol factories. Several plant shutdowns of feedstock ethylene and its derivatives reflected lower-than-anticipated manufacturer demand. Shipments were delayed, and the supply remained weak. Market sentiment for Triethylene Glycol was positively influenced by stimulus measures implemented by the Chinese government, such as interest rate cuts and relaxed mortgage rules to support economic recovery. These policies boosted consumer sentiment and overall economic conditions, increasing demand for commodities, including Triethylene Glycol. Furthermore, the National Bureau of Statistics of China reported that NBS Manufacturing PMI rose to 49.7 in August 2023, indicating an improvement in the manufacturing and service sector. This, too, contributed to the overall positive trend in the Triethylene Glycol market in China.
Europe
The start of the third quarter in 2023 brought about a notable uptick in Triethylene Glycol (TEG) prices in Europe. This surge in prices was primarily attributed to robust demand from the automotive and air conditioning manufacturing sectors. The increased demand marked a reversal of the previous downward trend, resulting in significant growth in the German market. Domestic suppliers responded by replenishing their product stocks to align with the heightened downstream requirements, contributing to the observed price escalation. Additionally, heatwaves across the Eurozone fueled increased purchasing for air conditioning systems, further influencing Triethylene Glycol's pricing dynamics. The upstream ethylene oxide market, particularly from exporting nations like the United States, showed strength, impacting downstream industries, including Triethylene Glycol production. Meanwhile, strong demand persisted from the downstream oilfield sector for Triethylene Glycol in natural gas extraction, and the plasticizer industries saw modest improvements in demand, contributing to the overall positive market trend for Triethylene Glycol. Furthermore, a notable 0.6% improvement in Industrial Producer Prices in August influenced the consumption of goods in the following month, further affecting Triethylene Glycol dynamics.
For the Quarter Ending June 2023
North America
Prices of Triethylene Glycol (TEG) declined by almost 5% in the second quarter of 2023, with the overall market being bullish due to declining prices of upstream ethylene oxide. Depreciating prices of feedstock eased production costs, and demand from the plasticizers segment was largely absent amongst consumers despite the cooling of inflation by approximately 0.6% and appreciation of CPI by over 2 points. Ample production in the face of underutilizing demand consequently led to an accumulation of large amount inventories, which had to be sold at negotiable prices. Demand from international offtakes was also recorded to be low as global economic conditions worsened. No disruptions in the supply chain were recorded, which ensured an ample flow of inventory in the region. Demand, however, remained weak in both domestic and international markets. At the end of the second quarter of 2023, the final prices of triethylene glycol declined and ultimately stabilized at USD 876/MT FOB Houston.
APAC
Prices of Triethylene Glycol witnessed a bearish situation throughout the second quarter of 2023, with prices reported to have declined over 6%. The depreciation of prices was bolstered by declining prices of upstream ethylene oxide by almost 18%, which eased production costs. Additionally, demand from the downstream dehumidifying and disinfectant industry was also recorded to be low as purchasing activities were dampened by the depressing outlook of the economy. Demand from downstream packaging and polyurethane industry was also largely low, which further had detrimental effects on the prices of Triethylene Glycol due to the commodity being a byproduct of mono and diethylene glycol. The existence of ample inventories in the face of weak demand led to an accumulation of large amounts of inventories that had to be sold at discounted prices, further depreciating the commodity's prices. Additionally, the deflating economy of China may have aided in the depreciation of commodity prices, with CPI further expected to decline. Towards the end termination of the second of 2023, prices of Triethylene Glycol declined before stabilizing at USD 1028/MT CFR Qingdao.
Europe
Prices of Triethylene Glycol witnessed a bearish situation throughout the second quarter of 2023 in the European market, with prices reported to have declined approximately by 5%. The cardinal reasons are attributed to the decline of prices of upstream ethylene oxide by over 4% and sluggish downstream demand from food packaging industries. Recessionary conditions prevailed over Europe, which cast a negative outlook on the purchasing activities of the end-user consumer. Production costs eased as costs of upstream declined. Demand for mono ethylene and diethylene glycol was large absent as the performance of plasticizer and polyurethane industries were poor, which further had detrimental impacts on the prices of the commodity. Additionally, rising inflation, which was recorded to be over 6% and falling PMI to 38.8, which was recorded to be the lowest since May 2020, had further diminished the optimistic outlook of the market amongst suppliers. Prices of Triethylene Glycol were reported to be declining before they finally stabilized at USD 1374/MT FD Hamburg at the end oof June 2023.
