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Propylene Glycol (PG) Prices, News, Monitor & Demand
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Propylene Glycol Price Trend and Forecast
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Market Overview
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.
Propylene Glycol Market Analysis: Industry Market Size, Plant Capacity, Production,
Operating Efficiency, Demand & Supply, Grade, End-User Industries, Sales Channel,
Regional Demand, Foreign Trade, Company Share, Manufacturing Process, Policy and
Regulatory Landscape, 2015-2035
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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.
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List of Propylene Glycol Suppliers
1. LyondellBasell Industries Holdings B.V.
2. INEOS
3. BASF SE
4. Dow
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Product Description
Propylene Glycol is a viscous, colorless, odorless synthetic liquid substance having molecular formula C3H8O2. Its less volatility and miscibility in a broad range
of solvents, such as water, acetone, chloroform etc. makes Propylene Glycol an important petrochemical product with vast range of applications in polymer and
food Industries, as an antifreeze, pharmaceuticals etc. Industrially, Propylene Glycol is mainly produced from Propylene Oxide using non-catalytic, hightemperature process (200deg Celsius – 220 deg. Celsius) and catalytic method (150 deg. Celsius – 180 deg Celsius) in the presence of ion-exchange resin.
Small amounts of 20% Propylene Glycol, 1.5% of di-Propylene Glycol and polypropylene Glycols (PPG) are also generated by-products. Propylene Glycol is
majorly available in the industrial (PGI) and U.S. Pharmacopeia grade (USP).
CAS No:
57-55-6
HS Code:
29053200
Grade:
USP & FFG (Purity>99.5%), Industrial Grade(Purity-99%)
Contract Size:
50 MT
Packaging Type:
Drums/Tank
Propylene Glycol News
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Propylene Glycol Costs Ascend as German Market Sees Multifaceted Sector Demand
In early March, there was a notable uptick in Propylene Glycol prices across pharmaceutical and industrial grades within...
China Braces for Noteworthy Increase in Propylene Glycol Production Capacity in 2024
The propylene glycol industry in China is poised for a significant and transformative phase, anticipating substantial growth with...
PIF-Backed Dussur, Baker Hughes Open Jubail Chemicals Plant
The collaboration between the Saudi Arabian Industrial Investments Co., popularly known as Dussur, and Baker Hughes has heralded...
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