Polyethylene Glycol Prices Show Bearish Trend in Asia Amidst Increased Supplies

At the beginning of April 2023, Polyethylene Glycol orders were stable, and supplies were tight from Middle Eastern exporters due to moderate operational rates amid weak availability of feedstock Ethylene due to plant shutdown.

PEG 200, PEG 400, and PEG 1000 are classified as Polyether Polyols where upstream is Ethylene Oxide. Polyethylene Glycol is also called Polyethylene Oxide. As per sources, Saudi Kayan Petrochemicals Company in Al-Jubail, with a feedstock Ethylene production capacity of 50917 TPM, went for maintenance shutdown from 1st April to 20th April 2023, which affected feedstock supplies.

The Polyethylene Glycol’s upstream Ethylene supplies improved in the second half of April after the resumed plant operations at Saudi Kayan Petrochemicals. Simultaneously, operational rates increased with ease in upstream costs due to reductions in Crude oil demand and consequent decline in upstream Ethylene prices. Hence, the Middle Eastern exporters increased their supply rates of Polyethylene Glycol.

However, the demand for Polyethylene Glycol depressed in the second half of April, and suppliers reduced their quotations. Conclusively, at the end of April, Polyethylene Glycol prices in India witnessed a decrease of USD 18.7/MT and settled at USD 1392.49/MT.

Simultaneously, at the beginning of April, Polyol demand was stable and shifted negatively in the H2 of the month due to sluggish orders for Polyether Polyol from downstream Polyurethane producers and an increase in inventory levels. Polyethylene Glycol and Polyol stocks were excessively available in the Indian market due to increased supplies from European exporters in the second half of the month amid destocking practices due to the surplus availability of inventories in the Euro region. Conclusively, Polyether Polyol Mw. 3000 & μ 550 Ex-Mumbai settled at USD 1923.04/MT after witnessing a monthly decrease of 3.2% at the end of April 2023.

Furthermore, BASF started its first Bio-Based Sovermol® Polyol plant at Mangalore, India, in March 2023. The raw material Bamboo Bagasse is sufficiently available near the site. Sovermol is used to produce sustainable coatings and adhesives. It can potentially replace conventional Crude oil-derived Polyol in the future with reduced environmental carbon emissions. This will impact the Polyethylene Glycol market in the future.