For the Quarter Ending June 2025
North America
• Diethylene Glycol (DEG) Price in North America declined during the Q2 2025 especially in the US market where it fell by 18.8%, reaching USD 755/MT CFR Texas by the end of June.
• The quarter opened with bearish momentum, driven by ample supply and subdued demand. Elevated inventory levels, lower Ethylene Oxide feedstock costs, and declining WTI crude oil prices suppressed production margins and weighed on spot market sentiment through April.
• Domestic consumption remained weak, especially from the resin, antifreeze, and coatings sectors, as excess stock and macroeconomic uncertainty limited downstream procurement. U.S.–China trade tensions and new import tariffs further curbed export inquiries and depressed overall offtake.
• Despite steady plant operations, localized production outages such as Formosa’s brief Force Majeure in April and maintenance at Indorama and Lotte Chemical’s facilities during May–June contributed to temporary supply tightness, moderating the oversupplied market.
Why did the price of DEG not change in July 2025 in the North America region?
• In July 2025, the DEG Price Index in North America remained stable, supported by limited trading activity and cautious, need-based procurement from downstream sectors.
• The MEG Production Cost Trend showed no significant movement, as low global crude oil benchmarks and steady domestic production maintained balanced market fundamentals.
APAC:
APAC Diethylene Glycol (DEG) Price rose during the Q2 2025, especially in the Chinese market where it rose by 5.7%, settling at USD 670/MT FOB Busan in June.
• The bullish trend was underpinned by persistent supply disruptions, including force majeure declarations by South Korean producers Lotte Chemical and LG Chem, and extended plant outages across China and the Middle East during April, which constrained overall availability.
• Upstream Ethylene Oxide prices remained relatively stable through most of the quarter, offering limited cost volatility. Nonetheless, rising import offers—particularly from the Middle East—supported gradual price increases from mid-May onward.
• Downstream demand improved steadily, led by the paints, coatings, and automotive coolant segments. South Korea’s automotive sector posted strong year-on-year sales growth, reinforcing DEG consumption across Q2.
Why did the price of DEG change in July 2025 in the APAC region?
• In July 2025, the DEG Price Index in the APAC region faced downward pressure due to limited demand recovery following summer production cuts and a slowdown in construction and coatings sectors.
• The DEG Production Cost Trend remained under strain from persistently weak global crude oil benchmarks, which negatively impacted production margins and regional trade sentiment.
• The MEG Price Forecast suggests continued bearish market conditions, as sluggish end-user demand and fragile economic outlooks may cap any significant price rebound.
EUROPE:
• Diethylene Glycol (DEG) spot price in Europe declined during the week the Q2 2025 especially in the German market where it declined by 11.3%, reaching USD 805/MT CFR Hamburg by June 2025.
• The trend was initially driven by constrained supply, as global outages in the U.S. and Saudi Arabia, coupled with INEOS’s scheduled maintenance in Belgium, limited availability and pushed prices up through April.
• Despite a weak construction season and stagnant automotive demand, downstream sectors like resins, coatings, and solvents maintained stable offtake, supporting price stability mid-quarter.
• From mid-May onward, pricing turned bearish as inventories normalized, upstream Ethylene Oxide costs softened, and import volumes stabilized. Market players adopted conservative procurement strategies amid subdued industrial activity.
• Logistical bottlenecks across Northern Europe—including persistent congestion at Hamburg, Antwerp, and Rotterdam—continued to limit trade efficiency but were insufficient to reverse the downward pricing pressure.
Why did the price of DEG not change in July 2025 in the European region?
• In July 2025, the DEG Price Index in Europe remained stable due to balanced supply-demand fundamentals and steady downstream activity, particularly from the automotive and coatings sectors.
• The DEG Production Cost Trend showed limited fluctuation, supported by consistent Middle Eastern import volumes and moderate domestic output, despite logistical inefficiencies at major European ports.
MEA:
MEA Diethylene Glycol (DEG) Price rose during the Q2 2025 especially in the Saudi Arabia where it rose by 1.5%, settling at USD 724/MT FOB Jeddah in June.
• Early Q2 saw price pressure from enough inventory and limited international inquiries. April also faced soft upstream support, with WTI crude oil falling and steady Ethylene Oxide prices offering little cost pressure.
• Supply gradually normalized post-Ramadan as major Saudi producers—Sharq, JUPC, and Saudi Kayan—resumed operations. However, Rabigh’s planned June shutdown tightened availability late in the quarter.
• From mid-May onward, seasonal demand recovery, particularly from Asian buyers ahead of the summer season and extended holidays, drove higher procurement. Spot demand strengthened, especially from construction chemical and antifreeze segments.
• Despite intermittent oversupply in May, bullish sentiment returned as feedstock Ethylene Oxide prices climbed by in late June, prompting price increases.
• Overall, Q2 was marked by supply-side disruptions, muted export flows in April-May, and a late-quarter cost-push recovery.
Why did the price of DEG change in July 2025 in the MEA region?
• In July 2025, the DEG Price Index in the MEA region remained largely stable, with slight downward pressure due to weak upstream crude oil benchmarks and subdued demand from key Asian markets impacted by seasonal monsoon conditions.
• The DEG Production Cost Trend was supported by improved domestic supply, following the restart of production units such as JUPC and Sharq, alongside steady plant operations and inventory levels.
For the Quarter Ending March 2025
North America
In Q1 2025, Diethylene Glycol (DEG) prices in the North American region exhibited an overall bearish trend, despite some upward fluctuations during January and February. The quarter commenced with a bullish sentiment in early January, primarily driven by supply-side constraints amid anticipated Ethylene Oxide (EO) shortages, high production costs, and planned maintenance turnarounds. Additionally, logistical issues like rising container rates and port strike threats further tightened supply, while demand remained improved in the paints and coatings segment due to robust automotive sales.
February saw minor price gains, attributed to normalized industrial activity and improved procurement from the resin and coatings sectors. However, by late February, declining feedstock costs and sluggish demand began exerting downward pressure. Ethylene Oxide prices and crude oil fell, leading to DEG price decrease.
March marked a definitive shift toward bearishness, with ample supply from resumed operations and weakening demand from the automotive-linked paints sector. New vehicle sales declined, contributing to significant fall in prices to USD 930/MT CFR Texas by March, solidifying the quarter’s downward pricing trajectory in the U.S. market.
Europe
In Q1 2025, Diethylene Glycol (DEG) prices in the European market followed a bearish trajectory, with consistent month-over-month declines driven by weak downstream demand, adequate inventory levels, and fluctuating upstream cost pressures. In January, DEG prices slipped steadily as downstream resin manufacturing demand remained muted, largely due to sluggish performance in the construction and automotive sectors. Although supply remained stable and domestic production costs were controlled by steady Ethylene Oxide prices, oversupply conditions and cautious post-holiday buying sentiment exerted pressure on the market, causing prices to fall. In February, despite marginal recovery signals such as improved EV production and tighter imports due to a force majeure event in the U.S., prices stayed mostly flat with a slight uptick mid-month. However, supply remained sufficient, and persistent weakness in the construction sector curbed any potential price rise. By the end of Q1, bearish momentum returned as supply constraints intensified due to ongoing logistical disruptions and import limitations. However, these were overshadowed by a slump in demand from downstream applications and a significant drop in feedstock costs. Consequently, DEG prices in Germany declined to USD 908/MT CFR Hamburg by the end of March, reflecting a sustained downtrend across the quarter.
MEA
In Q1 2025, Diethylene Glycol (DEG) prices in the MEA region followed a bearish trajectory, driven by weakening demand fundamentals and fluctuating supply-side conditions. In January, prices initially held steady, supported by balanced supply-demand dynamics and healthy inventory levels. However, by mid-January, prices dipped marginally due to oversupply pressures and sluggish overseas inquiries. Planned maintenance shutdowns at major Saudi Arabian plants like MEGlobal and Sharq Unit-4 momentarily constrained supply and led to a brief price recovery in the third week, yet this uptick was short-lived. February witnessed consistent price stability across most weeks, underpinned by subdued demand from Asian markets due to the Lunar New Year holiday and weak downstream activity in resin and solvent sectors. Despite continued maintenance at key facilities and declining feedstock costs for Ethylene Oxide, the lack of aggressive procurement kept prices stagnant. In the late quarter, despite improved export activity and moderate demand recovery, logistical inefficiencies during Ramadan offset gains. Consequently, DEG prices in Saudi Arabia remained steady at USD 713/MT FOB Jeddah, highlighting a predominantly bearish trend for Q1.
APAC
During Q1 2025, Diethylene Glycol (DEG) prices in the APAC region exhibited a bullish trajectory, primarily driven by tightening supply conditions and a gradual recovery in downstream demand. In January, DEG prices initially remained stable amid ample inventories, moderate import inflows, and subdued downstream demand, particularly from the resin and construction sectors. However, as the month progressed, prices gained momentum due to maintenance turnarounds at major Middle Eastern facilities like MEGlobal and Sharq Unit-4, which restricted regional supply. Simultaneously, post-holiday restocking in Asia, coupled with import delays from the Middle East, further intensified supply tightness, causing prices to rise steadily through late January. In mid Q1, the bullish sentiment continued. Although prices showed marginal fluctuations in early February due to the Lunar New Year holidays and weak automotive sector performance, restocking activity and improved operational rates post-holiday pushed prices upward. Maintenance activities and supply uncertainties from the Middle East supported these gains. The quarter end further extended this upward trend, as demand improved in the paints and coatings segment amid rising automotive sales. Declining freight rates and firm production costs also added logistical and cost advantages to local producers. Concluding the quarter, South Korea’s DEG prices climbed to USD 634/MT FOB Busan, reinforcing a steadily strengthening market outlook across the region.
For the Quarter Ending December 2024
North America
In Q4 2024, Diethylene Glycol (DEG) prices in North America followed an overall upward trend. Early in the quarter, prices remained stable with minor fluctuations, supported by high inventory levels, moderate supply, and weak demand. Subdued consumption from downstream sectors like resins, coatings, and automotive, along with disruptions in US ports, balanced the market despite high crude oil stocks and increased imports.
In the mid-quarter, DEG prices-maintained stability, with slight fluctuations. Supply conditions remained tight due to labor strikes at key Canadian ports, which impacted imports. While freight charges and crude oil prices rose, they didn’t significantly affect price trends. Demand from downstream sectors such as resin manufacturing and antifreeze applications remained moderate, with a seasonal uptick in automotive demand.
In the final part of Q4, DEG prices rose due to higher production costs and constrained supply. Ethylene Oxide and crude oil price hikes drove up production costs. Although downstream demand, especially from resin manufacturing, remained weak, limited supply and inflationary pressures supported the price increase. By the end of the quarter, DEG prices surged by 1.25%, particularly in the US market.
EUROPE
Q4 2024 witnessed a bearish trend for Diethylene Glycol (DEG) prices in the European market, marked by consistent declines across the quarter. In the early part of Q4, DEG prices saw a marginal rise in a stable environment, supported by abundant feedstock availability and strong operational activity. However, demand remained weak, especially from resin and coating industries, as downstream buyers adopted a cautious approach due to sluggish performance in the automotive sector and limited procurement amid low inflation and reduced energy costs. By mid-Q4, the market experienced a declining trend as demand from the resin manufacturing sector stayed subdued, with increased inventory levels and sluggish downstream consumption exerting further pressure on prices. Supply disruptions, including logistical challenges, added uncertainty to the market. In the final part of Q4, the downward trend intensified due to abundant supply and weak demand, particularly from resin manufacturing and automotive coatings. Inflationary pressures, coupled with logistical disruptions such as port congestion and a French rail strike, exacerbated market conditions. Aggressive year-end destocking activities by suppliers led to a notable 2.89% decline in German DEG prices by December's end.
Saudi Arabia
The Diethylene Glycol (DEG) price trend in the MEA region exhibited marginal growth throughout Q4 2024. In the early part of the quarter, prices remained stable with minor fluctuations as the market faced oversupply from September’s maintenance shutdowns, weak overseas demand, and logistical disruptions caused by U.S. port strikes. This bearish sentiment was counterbalanced by steady domestic consumption, primarily driven by the region's construction boom, which provided consistent demand. Midway through Q4, the MEA market maintained a stable trend, supported by balanced supply levels and operational stability, despite production cuts such as Yansab’s in Saudi Arabia. Rising freight charges and slight increases in upstream ethylene prices influenced minor upward price adjustments during this period. Entering December, prices witnessed slight increases due to consistent demand from construction and rising freight costs. However, weak demand from overseas markets, coupled with high inventory levels, exerted downward pressure on prices in mid-December, as manufacturers turned to year-end destocking to clear inventories. Despite these fluctuations, the Saudi Arabian DEG market concluded Q4 2024 with overall growth of 1.74%.
APAC
In the last quarter of 2024, Diethylene Glycol (DEG) prices in the APAC market displayed a mixed trend. Early in Q4, prices saw a stable pattern with marginal fluctuations, supported by tight supply due to planned maintenance shutdowns, reduced international imports, and geopolitical tensions in the Middle East. These factors initially pushed prices up, further exacerbated by rising crude oil prices. However, subdued downstream demand, especially from resin production and the construction sector, helped balance the price pressure. In mid-Q4, DEG prices declined due to weak demand, increasing inventory levels, and the weakening Chinese yuan. Despite stable supply, limited consumption from key industries led to sluggish market activity. By the end of Q4, prices began rising again, driven by higher import costs, steady demand from paints & coatings, and rising freight charges. By early December, DEG prices surged 1.89%, particularly in China, supported by robust domestic production and limited imports, despite fluctuations in crude oil prices. This price increase was also bolstered by strong demand from the automotive and coatings sectors, alongside rising logistics costs.
For the Quarter Ending September 2024
North America
Throughout Q3 2024, the North American Diethylene Glycol (DEG) market experienced a sharp rise in prices due to several factors. The tight availability of feedstock Ethylene Oxide, coupled with rising upstream Ethylene costs, pushed production expenses higher. This situation was further aggravated by fluctuating crude oil prices, influenced by heightened geopolitical tensions in the Middle East, which contributed to increased market volatility.
Supply disruptions later in the quarter compounded the price hike. Hurricane Francine caused shutdowns at key production facilities, including Dow Chemical Company and Nan Ya Plastics Corporation, significantly curbing output. The constrained supply limited the availability of Diethylene Glycol, adding upward pressure on prices. Additionally, looming fears of a strike by U.S. East and Gulf Coast port workers created uncertainty, threatening to disrupt trade flows and further tighten the market.
In the U.S., Diethylene Glycol prices followed a steady upward trend, reflecting a 4.7% increase from the same period last year. By the close of the quarter, the price reached USD 936/MT CFR Texas, underscoring the market's strong price momentum driven by constrained supply and production challenges.
Europe
Throughout Q3 2024, Diethylene Glycol (DEG) prices in the European region experienced a notable decline, with Germany facing the sharpest price shifts. The downturn in prices was primarily driven by weak downstream demand, particularly in the resin manufacturing sector. The paints and coatings industry also saw reduced activity, alongside subdued performance in the automotive and construction sectors, further limiting the consumption of DEG. Additionally, lower feedstock costs and stable supply levels played a significant role in sustaining this downward pricing trend. The steady availability of DEG in the market, combined with lackluster demand, created an environment of negative market sentiment. As a result, DEG prices fell by 1% compared to the previous quarter, signaling a bearish outlook across the European market. Despite the quarter-on-quarter decline, when compared to the same period last year, DEG prices were up by 1.5%. By the end of the quarter, the price of DEG in Germany stood at USD 1015/MT CFR Hamburg, reflecting a challenging market landscape marked by sluggish demand and low confidence in the broader economy.
APAC
In Q3 2024, the Asia-Pacific (APAC) region saw a continuous decline in Diethylene Glycol (DEG) prices, with China recording the most significant changes. The market was influenced by several factors, including subdued demand from downstream industries and stable feedstock costs, primarily from the ethylene oxide sector. Demand from key sectors like paints, coatings, automotive, and construction remained weak, which further intensified the bearish market sentiment. In the second half of the quarter, DEG prices fell by 2% compared to the first half due to increased supply and weak consumption. Despite these factors, Chinese DEG prices showed resilience, with no significant price shift, maintaining a flat 0% change from the previous quarter. The quarter-ending price for DEG in China stood at USD 791/MT Ex-Guangdong, reflecting the ongoing negative sentiment in the market. Despite global economic challenges and seasonal market fluctuations, the overall market trajectory remained downward, aligning with the broader price trends observed throughout Q3 2024, further exacerbated by the sluggish recovery in key demand sectors.
MEA
Throughout Q3 2024, the Middle East and Africa (MEA) region experienced a significant uptick in Diethylene Glycol (DEG) prices, driven by a confluence of market dynamics and external demand factors. The surge in global demand, particularly from key international markets, exerted upward pressure on pricing structures. This heightened demand was complemented by substantial domestic consumption within the MEA region, especially from the downstream paints and coatings sectors, which benefited from a buoyant construction industry. Saudi Arabia emerged as a focal point for these price adjustments, recording a notable 2% year-over-year increase in DEG prices, while also reflecting a 1% quarter-on-quarter rise. This consistent upward trajectory underscores the region's robust economic activities and enhanced consumption patterns. By the end of the quarter, DEG prices reached USD 718/MT FOB Jeddah, illustrating a sustained positive pricing environment. The interplay of strong domestic consumption and robust global demand signals a resilient market landscape, reinforcing the potential for further price escalations as market conditions evolve.
FAQs
1. What were the main supply-side disruptions that impacted DEG prices globally in Q2 2025?
Key disruptions included Force Majeure declarations at U.S. and South Korean facilities, extended plant shutdowns in China and the Middle East, and maintenance at European units like INEOS, tightening supply in several regions.
2. How did downstream sectors influence DEG market movement in Q2 2025?
Resin, antifreeze, coatings, and construction chemical segments played a mixed role. While some sectors (like auto and coatings) showed slight recovery, others (like housing and solvents) remained cautious, affecting regional price momentum.
3. What role did upstream feedstock trends play in DEG pricing during the quarter?
Lower WTI crude and steady Ethylene Oxide prices in April exerted bearish pressure early in Q2. However, a slight feedstock cost increase in late June (especially in MEA) supported limited price gains.
4. What caused the strong Q2 price rebound in Europe’s DEG market?
Tight global availability, maintenance at INEOS Belgium, and constrained import volumes pushed prices up. Mid-quarter normalization and softening upstream costs later capped further upside.
