Sturdy Export Demand Inducing Buoyancy to Diethylene Glycol (DEG) Prices in South Korean Market
- 19-Jan-2022 4:35 PM
- Journalist: Yage Kwon
Diethylene Glycol (DEG) prices gained in South Korea on the account of improved buying sentiments from domestic as well as international buyers. A rise in the number of enquiries has been witnessed especially from key markets like China ahead of the Lunar Year. Diethylene Glycol FOB Busan has assessed at USD 609/ton on January 19th, 2022, showcasing a marginal rise since last week and is likely to attain more gains in the coming days on the back of heavy demand.
Moreover, according to local DEG producers, ample no. of enquiries from Polymer manufactures of other markets including Vietnam, Indonesia, Turkey, Brazil, India, etc. has been registered in recent times. Hence, sturdy exports due to the strong demand from downstream manufacturers such as Polyester Resins, Plasticizers, Polyurethane etc. in the international market has led to the inflation in the values of Diethylene Glycol in the South Korean market.
Strong fundamentals of upstream Ethylene Oxide owing to the volatility in crude oil values have also influenced the Diethylene Glycol prices in South Korea. South Korea is among the top ten exporters of Diethylene Glycol in the world and China is its major market holding around 62% share of its total export. Therefore, buying activities from China directly trigger the pricing trend of DEG in South Korea.
Diethylene Glycol is an odorless and colorless organic compound that is miscible in water, acetone, ether, alcohol, and ethylene glycol therefore widely used as a solvent. It also finds application as a humectant, chemical intermediate, and cryoprotectant. Diethylene Glycol is commonly used in the preparation of antifreeze brake fluid, dyes, Resins, Plasticizers, Polyurethane, etc. Its major end use industries are Polymers, Construction, Paints and Coatings, Plastics, and others.
Acc. to ChemAnalyst, Diethylene Glycol prices are anticipated to rise further in the South Korean market in the near term backed by the sturdy demand from the downstream sectors, especially from Plastics and Polymers. Additionally, fluctuations in the feedstock Ethylene Oxide values can persuade the pricing trend of Diethylene Glycol in the forthcoming days.