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European Glycol Ether prices slipped amidst a decline in consumption rates during Nov 2023
European Glycol Ether prices slipped amidst a decline in consumption rates during Nov 2023

European Glycol Ether prices slipped amidst a decline in consumption rates during Nov 2023

  • 13-Dec-2023 3:15 PM
  • Journalist: Timothy Greene

Hamburg, Germany - In November 2023, the Glycol Ether prices in Germany witnessed a decrease of almost 4%. At the beginning of the month, trading activities remained low due to public holidays in Northwest and Southwest Europe. The Glycol Ether inventory levels were adequately available in the market amid a decline in stocking practices from regional and international buyers. At the same time, procurement activities remained low from the end-user industries amid a declining trend in end products. Consequently, the demand for Glycol Ether remained depressing from the domestic downstream industries as the demand for end products like cleaning agents was seen sluggish in the market amid ample availability of supplies. Similarly, orders remained sluggish from ink manufacturers with slow market offtakes. Meanwhile, demand for Glycol Ether remained average from the Pharma sector and personal care product manufacturers.

At the same time, the cost support declined from the feedstock Ethylene Oxide during the month in the wake of reduction in the Brent Crude Oil prices after the resumed refinery operations in the North American region. In the past few months, the Purchasing Manager's Index has consistently demolished in the European region. It declined again during November 2023, indicating further contraction in the manufacturing sector activities. Consequently, the manufacturing activities fell, and Glycol Ether supply rates were reduced to the market. At the end of November 2023, the Glycol Ether prices in Germany witnessed USD 1280/MT FOB Hamburg.

Meanwhile, last month, the Glycol Ether price trend remained stagnant, and prices rose marginally by 0.8% due to moderate demand-supply dynamics. The cost support was volatile from the feedstock Ethylene Oxide throughout October amid stressed availability of supplies due to plant shutdown activities. As per the sources, Sasol, in Marl, with a feedstock Ethylene Oxide production capacity of 215,000 MTPA, went under maintenance turnaround in Early September till mid-October 2023. It affected the production rates of the Glycol Ether in Germany, and product availability remained moderately low in the regional market. At the same time, the fluctuation in Brent Crude Oil prices amid stabilization in speculations around the supply chain disruptions in the Middle East, impacted the feedstock availability in the region.

As per the assessment, the Glycol Ether prices will decrease further towards the end of the year 2023. The reason is the depressing demand from the downstream daily care product manufacturers during winter. Furthermore, the cost support will reduce from the upstream Ethylene due to the decrease in offtakes from the downstream manufacturers along with the decline in manufacturing activities during peak winter. It will negatively impact the market prices of Glycol Ether in the European region.

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