Prices of Propylene Glycol Rise in USA Amid Tight Feedstock Supply and Production Constraints

Propylene Glycol prices in USA have been rising since July with the prices at USD 2520 per tonne as per ChemAnalyst Database in August up almost 7% from the past month. The price rise is triggered by tight feedstock Propylene Oxide (PO) supply. The supply of feedstock PO is low due to Dow Chemical’s force majeure which has further escalated buyer’s worries. Production has also been affected due to the hurricane Ida related power outages and logistical constraints. 

The demand on the other hand is high form the downstream Unsaturated Polyester Resin (UPR) market. Hence the price rise is supported by both the tight supply and buoyant demand. 

Propylene Glycol is a viscous, colourless, odourless liquid. It has several applications including building and construction which is a growing market for Unsaturated Polyester Resin, transportation in which Propylene Glycol is used as a deicing fluid, automotive coolant, and hydraulic and brake fluid. 

The global Propylene Glycol demand stood at around 2.73 million tonnes in 2020 which is expected to grow at a CAGR of 4.4% in the upcoming years. 

As per ChemAnalyst, “the prices for Propylene Glycol in USA are expected to rise in the coming weeks due to rising raw material prices which are affected by supply constraints caused by Ida. LyondellBasell which is a key producer of Propylene Glycol announced on September 1st that the company will be increasing the price of Propylene Glycol by USD 110 per tonne which would be effective from 16th September.”