Quotations for Propylene Glycol in Western Nations Contradicts General Seasonal Pricing Trend

At the end of the first quarter, the global temperature in the Northern Hemisphere observed a significant rise, which impacted the transition in the demand pattern for numerous commodities and sectors across the regions. One of the major impacted sectors is the Antifreeze industry from the Aviation sector, as the rising temperature affected the active inquiries for Ethylene Glycol, Propylene Glycol, and several grades of Glycol Ethers. Although, the prevailing conflict between Russia and Ukraine gyrated the market sentiments for numerous commodities across the regions and the swinging dynamics of the international crude oil market. The implementation of strict sanctions on Russia made the arbitrage and transaction harder between Russia and European Union. It further levied its impact as inflation in the global commodity market.

As numerous countries were hesitant to procure, Russian Crude led to a shift in the mapping of inquiries towards the middle-east which ultimately soared the prices of Crude and the market participants were closely monitoring the peace talks between Russia and Ukraine. Therefore, higher cost support from the upstream strengthened the Propylene Glycol producers will regarding the increment in the offered quotations. In mid-March, a major manufacturer of Propylene Glycol decided to hike the quotations by USD 220 per tonne effective from the starting week of the second quarter. Although, despite the gyration in the quotations of commodities in the western hemisphere, the Chinese and Indian market reciprocates the Western markets as they protected their interests earlier and showcased the ideal seasonal pricing movement for Propylene Glycol. Whereas the Chinese market is currently dealing with the resurgence of COVID that plunged the demand more than was anticipated, resulting in the sudden delicacy in the market dynamics.

As per ChemAnalyst, the Propylene Glycol pricing movement observed consistent inflation in the western hemisphere and completely contradicting dynamics in the East Asian region. It is anticipated that such trends are likely to prevail, although market participants were closely monitoring the peace talks between Russia and Ukraine that had the potential to control the swindling of the market dynamics.