The China Dipropylene Glycol Monomethyl Ether (DPGME) market continued to decline in October **** with FOB Qingdao prices dropping by *.** on the month. Participants DPGME cited the combination of weak downstream demand, softer feedstock prices and sufficient supply availability as the bearish commodity that dominated the month’s trading activity.
DPGME’s largest end-use segment paints and coatings, which struggled through a severe post-Golden Week slack and the beginning of winter seasonal headwinds. Construction activity slowed considerably as freezing temperatures and weather-related delays pushed interior and exterior painting hold-ups. Lacklustre domestic retail demand for decorative coatings had resulted in extremely cautious inventory policies by distributors, who have held back on bulk purchases. “Purchasers are buying hand-to-mouth,” said a trader based in Shanghai. “There’s no point in building stocks with the construction sites closing for the winter.”
Plenty of supply and declining cost support has been reported for...
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