PEG Prices In Europe Are At A 6-Month High Owing To Increased Demand And Rising Ethylene Oxide Prices
- 10-Feb-2022 3:24 PM
- Journalist: Harold Finch
The price of polyethylene glycol (PEG) in Europe is rising as the price of upstream ethylene oxide and its derivatives has been raised in the region. The values have skewed as a result of rising demand and growing upstream values. In Europe, import Ethylene Oxide costs are continuing to grow as players stockpile in expectation of higher pricing. German consumers, who were primarily preoccupied in November and December, have returned to restock stockpiles. As a result, the upward trend that began in January is expected to continue in February.
This month, polyethylene glycol surged in tandem with crude oil prices. Crude oil prices were stable and continue to vary at high levels, reaching historical highs for a period of time. The rise in international crude oil prices has given the market some support, and the glycol futures market has also climbed to a 6-month high. In the immediate term, the spot market price of PEG in Europe is projected to remain robust. On the other hand, the supply of the raw material ethylene oxide is insufficient, and unloading is delayed, causing some outsourcing equipment to malfunction. As a result, several operators remain bullish about the ethylene oxide market, despite good supply projections. Additionally, The European market is extremely vulnerable, as the Russia-Ukraine conflict worsens by the day and shows no signs of abating. As previously noted in Q4 2021, an increase in natural gas prices affects the production costs of all commodities in Europe.
As per ChemAnalyst, “Prices of all grades of PEG are expected to rise by roughly USD 50 per tonne in the next three weeks, owing to rising upstream Ethylene and Ethylene Oxide prices. Global feedstock shortages combined with increasing demand would keep offers high in most European countries at least through March”