For the Quarter Ending March 2023
North America
Diethylene Glycol prices increased in March compared to the prior month. The price of feedstock Ethylene rose, which added to the rising cost of production. Additionally, the incline in DEG costs was caused by both a rise in polyester operating rate and an excessive demand from downstream polyurethanes industries. However, Saudi Arabia's supply remained comparatively consistent throughout the month, and the maintenance and shutdown of the MEG plant had a greater impact on it. As a result, the DEG market in the USA was impacted by changes in the supply of Saudi cargo. Meantime, the downstream demand grew, and the overall market sentiment was optimistic. As a result, the market was upbeat owing to the robust demand side, and the market environment was generally favorable.
APAC
The domestic Diethylene Glycol (DEG) industry increased from the prior trading day. The shipping situation got better, but the limited supply of products contributed to the upward price trend. The price for DEG gained momentum owing to falling inventories and low unit output amidst some maintenance of MEG plants. The supply side was good, plus the downstream demand grew, and the overall market sentiment was optimistic. The supply of raw material ethylene oxide remained tight due to the high demand from the other downstream industries. However, the market was upbeat owing to the robust supply and demand side, and the market environment was generally favorable. As a result, the market for DEG rose throughout Q1, with prices hovering at USD 868/MT Ex-Guangdong during March.
Europe
Diethylene Glycol (DEG) market recovered during the first quarter of 2023 as inventories in the region reduced. However, supply chain disruptions had eased, reducing the delivery time. The primary factor which affected the pricing was reduced inventories and the volatile crude oil market. The Diethylene Glycol market was also supported by declining inventories. Materials were scarce because manufacturers were still waiting for price negotiations for their feedstock, Ethylene. However, the material supply had been hampered by the German strike. As a result, the market for diethylene glycol increased throughout the first quarter, with March prices circling USD 1295/MT CFR Hamburg.
For the Quarter Ending December 2022
North America
Diethylene Glycol (DEG) prices primarily observed an increase in the middle of the quarter as they fluctuated throughout North America in the fourth quarter of 2022. However, the majority of it experienced a downturn in the market because the demand from the polyester and downstream plasticizer industries was insufficient to offset the price increase. There were several additional factors, including delays in cargo imports and exports brought on by port closures and restricted port operation hours in the USA. Hurricane Ian, which prolonged shipping delays and had ships dock at ports on the East and Gulf Coasts while the West Coast battled supply-chain issues, labor disagreements, and a lack of storage capacity, made the need to begin port activity even more urgent. Due to this, the price fluctuated in the fourth quarter and settled at USD 795/MT CFR Texas during November 2022.
APAC
The Diethylene Glycol (DEG) prices in South China primarily increased throughout the fourth quarter of 2022. Because of the strong market sentiment and firm offers, downstream demand improved. In October, the combined DEG offtake at Vopak and Changjiang International Ports was 1550Mt. Participants were largely on the sidelines, which reduced trading activity. Both the local market and imports were generating more new orders for the downstream industry. Few imported ships arrived, and the inventory kept going down in a specific range. Low levels of inventory provided the market with solid support and reduced supply pressure. However, as a result of the ongoing effects of the covid restrictions in China, several regions' logistics and transportation were obstructed, and downstream inventories remained low. In conclusion, the price for DEG increased and settled at USD 712/MT CFR Qingdao.
Europe
In the fourth quarter of 2022, Diethylene Glycol (DEG) prices varied in Europe. Due to a constrained supply of the material in the region and an anticipated rise in local demand, the price of the item increased. Market participants asserted that producers were preparing to run their output at high rates when demand rose and low stock amongst the manufacturers. Later, due to the high demand for diethylene glycol from the plastics industry, manufacturers advise substantial offtakes on the demand side. Later, a rise in company confidence was backed by easing inflationary pressures and bettering economic conditions. However, the Polyester resin industry and downstream plasticizer sectors' weak fundamental demand drove down the prices for DEG. As a result, the price for DEG fluctuated and settled at USD 1290/MT CFR Hamburg during November 2022.
For the Quarter Ending September 2022
North America
As a result of the worldwide crisis, including fluctuating crude oil prices, rising inflation, and the US-China trade war, Diethylene Glycol prices rose in the North American market during the first part of Q3. The market for its feedstock, Ethylene Oxide, has also witnessed mixed trends due to the uncertain trend of global crude oil. While rising interest rates, tight supply, and high inflation have put pressure on product prices, the export market has remained robust from downstream polyester resins, polyurethanes, and plasticizers. Later in the second half of Q3, Hurricane Ian intensified cargo delays, forcing ships to divert to East and Gulf Coast entry sites as the West Coast struggled with supply-chain problems, labor disputes, and warehouse space shortages.
APAC
Diethylene Glycol prices in China increased by 3.2%, supported by the rising inflation and Covid restrictions in the Chinese market, which aided in the upward rally in Diethylene Glycol prices in the first half of Q3. Meanwhile, the oil market faces tight supply amid lowering OPEC output as OPEC struggles to meet its oil output, as agreed earlier in the first half of Q3. In contrast, the second half of Q3 witnessed abundant regional product availability and decreasing demand outlook in the domestic market, leading to a decrease in price. According to market sources, producers were also on the verge of reducing their production rate as demand lowered and products overflowed in the domestic market.
Europe
Germany's Diethylene Glycol (DEG) price increased by 5% in the first half of Q3. Due to a constrained product supply in the region and an anticipated rise in local demand, the product price increased. However, demand rose from the plastics industry, which accounts for 25% of worldwide consumption. In addition, due to the lowering of Rhine's water level, shipping issues rose, and the faltering economy were all factors that contributed to the market's negative sentiment in the second half of Q3. Thus, the commodities' supply was also hampered due to the congestion at the German ports of Bremerhaven and Hamburg.
For the Quarter Ending June 2022
North America
Diethylene Glycol (DEG) prices remained stable to decline in the North American region during the second quarter of 2022. Feedstock ethylene glycols, glycol ethers, and polyols markets observed unprecedented volatility, backed by the firm crude oil market price. Thus, owing to the uncertain market, the demand for the product slumped, as many manufacturers were waiting for a further drop in DEG prices. Meanwhile, market participant of the downstream industries using DEG in antifreeze, brake fluids, cosmetics, and lubricants reduced their offtakes during the considered quarter. At the same time, demand from Paints and Coatings, Adhesives, and Plastic industries remained firm during the first half to make prices roll over as previous month.
APAC
Diethylene glycol prices in China have constantly decreased in the second quarter of 2022. Inflationary pressure over Diethylene glycol has eased in the last couple of months, stemming from declining demand. Sluggish Diethylene Glycol demand from downstream polyester and plastic industry has reduced consumption. The feedstock ethylene oxide market has also weakened in the last few months, resulting in declined cost pressure over downstream DEG. This has further weakened the market sentiment and resulted in worsening pricing fundamentals. Thus, the price for DEG in China fell and settled at USD 858/MT CFR Texas. In contrast, the price for DEG in India increased in the first half, which later dipped by 4%, owing to sufficient availability and lull demand for the product in the regional market.
Europe
In the second quarter of 2022, Diethylene Glycol (DEG) prices in European countries declined in the regional market, which later caught pace owing to its rising demand from downstream industries. Markets for ethylene glycol, glycol ether, and polyol feedstocks experienced exceptional volatility, supported by the firm price of crude oil. Prices rose in the second half of this quarter due to solid downstream demand from the polyester and plastic industries. In the meantime, as an unpredictable Crude oil market dominated its feedstock ethylene oxide market, the price trend was also influenced by the crude oil market. Inline, crunch supply alongside soaring freight charges led to higher prices in later months.
For the Quarter Ending March 2022
Diethylene Glycol market trend remained stagnant due to uncertain demand fundamentals from the downstream industry. Market of feedstock Ethylene reacts in response to the fluctuating crude oil prices in the international market. Low demand from the polyester and plastic sectors caught market participants anxious in the first quarter, resulting in dull prices of DEG. DEG prices is North America were assessed at USD 857/MT CFR Texas in February 2022. In addition, supply chain disruptions, rising energy prices, and the war between Russia and Ukraine pressurized the commodity's price, as export and import of the product in the regional market were disrupted, which resulted in weaker market sentiments.
In Asia, prices of feedstock Ethylene Oxide, rose in the first half of Q1 as energy prices rose but then fell due to improved availability of the product. In China, slight withdrawal from the downstream polyester industry caused prices to fall in the first half of the first quarter, but the market gained momentum in late Q1 as the demand gradually improved from end-users. Further, the offers for ethylene oxide increased with increased cost support from upstream crude oil, along with the geopolitical turmoil in Eastern Europe, which led to crude oil prices exceeding USD 113 per barrel. Therefore, DEG cost tumbled in February and settled at USD 787 CFR Qingdao.
In Europe, DEG market witnessed dullness in the first half of Q1, which later improved and rose by 5% in the second half of the quarter. Raw material Ethylene Oxide rose with low availability of material amidst prevalent demand to manufacture Diethylene Glycol. Demand from the downstream polyester industry turned sluggish in the first half on the back of Russia's war against Ukraine. In contrast, volatile crude oil value affected the production of the product as the raw material gained a hike, adhering cost pressure upon downstream producers. Therefore, prices for DEG in the domestic market rose in late Q1 and settled at USD 782 CFR Hamburg in March.
