Propylene Glycol Prices Tumble in Europe as the Year Wraps Up

The Propylene Glycol price has been falling in the European market since the last month, i.e., November 2022, and as December 2022 progresses, the market trend has been going in the same direction. Propylene Glycol prices have dramatically lowered because no improvement has been seen in demand, but inventories still grew despite a fall in operating rates this month. Along with this, lower feedstock Propylene Oxide costs also impacted the downstream Propylene Glycol prices.

In December, supply chains run normally owing to decreased yard occupancies and fewer port congestions, ensuring a steady flow of materials to the regional and international markets. However, as the holiday season approached, demand for Propylene Glycol decreased further due to restricted market activity. Consequently, the current stockpiles can easily meet the inquiries from the end-user industries. Still, the low demand from the end-user pharmaceutical and cosmetic sectors was backing up the Propylene Glycol price drop.

Furthermore, as the ongoing yearlong destocking season of previously accumulated inventories took place in December, the manufacturers were mainly focused on selling off their stocks and clearing the shelves for new productions. To destock the material, several manufacturers’ do not mind selling the product at a discounted cost, eventually leading to a lesser market value for Propylene Glycol in the European market. In December, Propylene Glycol prices for pharma grade in European regions such as Germany, the United Kingdom, and France indicated a decline of 10.8%, 13.9%, and 19.8% on a monthly basis.

As per ChemAnalyst, It is anticipated that the sluggish market sentiments in the European region will further maintain the downward price trend of Propylene Glycol in the upcoming months. The demand from end-user industries will remain on the downside. Meanwhile, downstream product profits might get tightened, the operating rate will not be high, and procurement will be restrained.