Escalating Downstream demand may rule Diethylene Glycol market
- 10-May-2022 5:12 PM
- Journalist: Xiang Hong
Guangdong (China): According to ChemAnalyst sources, volatile crude oil prices dominate the market for its derivatives. The Diethylene Glycol market recovered on Tuesday, boosted by rising demand from downstream industries. Further, inclining pressure from feed Ethylene forced manufacturers to hike its rate by 1.27%, foreseeing the growing demand from the consumer’s end.
Will the crude oil market rule the price trend for Diethylene Glycol be a big question for the traders, as the ongoing Russia-Ukraine war will probably not ease sooner?
The plasticizer segment accounted for a significant share of the Diethylene Glycol, while demand from other sectors like cement, automotive, paints & coatings, and oil & gas industries too are augmenting the market dynamics of Diethylene Glycol. Therefore, rapid industrialization and urbanization across developing countries, like China and India, are boosting the demand for Diethylene Glycol, as it is used as a grinding agent for providing firmness in cement production.
At present, Diethylene Glycol demand is sky-high from the plastic industry, which accounts for 25% of the consumption of Diethylene Glycol globally. It’s used to produce plasticizers for paper, cork, synthetic sponges, and flexible PVC. Therefore, looking forward to the growth in the plasticizer industry, the demand for Diethylene Glycol rose rapidly compared to the Q1 of 2022.
Further, a trader based in Hazira also quoted that “the international crude oil continues to be firm, causing cost support of diethylene glycol to remain high, along with the skyrocketing demand from downstream sectors.”
ChemAnalyst predicted that the market for Diethylene would remain flourishing along with the rising demand from various downstream cement and plastic industries. The price may ease in the forthcoming weeks on the backdrop of declining prices of crude oil delivery to Asia by Saudi Arabia. Saudi Arabian supplier revealed that, “Saudi Aramco will reduce oil prices of all types of crude for Asia and Europe foreseeing the plunged demand after may.”