Increased Demand Encouraged European Polytetramethylene Ether Glycol Prices in Q3, 2022
- 04-Nov-2022 2:31 PM
- Journalist: Jacob Kutchner
Germany- Polytetramethylene Ether Glycol (PTMEG) prices in the European market have recovered as compared to the previous quarter of 2022. Several factors, directly and indirectly, have contributed to governing the market prices of PTMEG. The political conflict between Russia and European countries led to the implementation of sanctions, restricted natural gas supply, and soared energy prices. Natural gas shortage and skyrocketing prices had put the major players in a dilemma as the production cost elevated along with higher demand for the product. Towards the quarter end, the market prices of PTMEG ranged between USD 3533 per MT to USD 3783 per MT in Germany.
Among the major European countries, Germany and the United Kingdom (UK) became significant consumers of PTMEG. With the increased inflation occurring in the region and high commodity prices, the demand outlook remained on a positive edge. According to the International Energy Agency, the third quarter of 2022 saw a 25% decrement in demand for industrial gas in Europe. This major issue pressured small to medium-scale PTMEG and its end-use manufacturing units to halt production and shut down the European market's plant operation. Stockpile shortage and positively inclining demand outlook escalated the final prices of PTMEG, especially in the third quarter of 2022. Textile industries observed varying behavior in different regions of Europe. Greece received less demand from Northern Europe regions leading to the PTMEG demand drop. On the other hand, western European countries such as Germany, Belgium, and the Netherlands displayed growth in production and demand for the product.
As per ChemAnalyst, the PTMEG prices will also be impacted by the feedstock tetrahydrofuran prices along with the firm demand for the product in the regional market. The spandex market is anticipated to increase slightly in the regional market amidst the ample stock availability with the end-use manufacturing units.