For the Quarter Ending December 2022
The Dipropylene Glycol Monomethyl Ether prices contracted during the final quarter of 2022. Initially, prices decreased marginally amid high inflation and moderate product supplies. At the same time, a significant decrease in the upstream Ethylene Oxide demand after USA’s EPA identified risks from commercial sterilization facilities using Ethylene oxide. It negatively impacted the production costs of Dipropylene Glycol Monomethyl Ether. However, during the mid-quarter, product prices maintained stability due to firm demand and a decrease in production costs due to a reduction in the feedstock Methanol prices. Then in the final month of Q4, Dipropylene Glycol Monomethyl Ether prices declined again because of weak demand and consumption rates and moderate availability of supplies in the market.
In Asia, Dipropylene Glycol Monomethyl Ether prices decreased throughout quarter IV of 2022. In the first month of the quarter, prices plunged noticeably due to diminished offtakes from paint and daily care product manufacturers. However, during the mid-quarter, Dipropylene Glycol Monomethyl Ether maintained stability. It decreased marginally amid affected feedstock availability and product supplies due to the Truckers strike in South Korea near the Busan port and the supply chain rise in covid cases in China. Towards the end of the quarter, prices plunged again in Asia amid destocking practices by producers and a decline in global freight charges.
Dipropylene Glycol Monomethyl Ether prices decreased during quarter IV of 2022. During the first month of Q4, product prices were reduced amid the decline in end-user consumption and firm production rates due to the improved availability of feedstock propylene oxide supplies and the consequent reduction in production costs of Dipropylene Glycol Monomethyl Ether. During the mid-quarter, prices decreased again due to weak offtakes by downstream Pharma industries, while production rates were hampered due to the production cut of feedstock and an increase in the input prices. Towards the end of the quarter, prices decreased again due to a reduction in feedstock and input costs amid stable consumer demand for cleaning products during the latter half of the quarter.
For the Quarter Ending September 2022
Dipropylene Glycol Monomethyl Ether prices fluctuated throughout quarter III of 2022 in the North American region. In the H1 of Q3, production costs decreased amid the weak upstream values. Increased feedstock propylene inventory levels and moderate operation rates reduced product prices. However, in the H2 of the quarter, the price trend shifted because of reduced operational rates amid the feedstock outages and stable demand from the domestic downstream industries. At the same time, inflation rose in the region, manufacturing activities reduced, and product inventory levels decreased, raising product prices towards the end of Q3 2022 amid the disrupted supply chain activities.
A downward price trend of Dipropylene Glycol Monomethyl Ether was seen in the Asian region during Q3 of 2022. Initially, the product prices were stable because of firm production costs and moderate demand from the downstream industries. The price started decreasing in the H2 of the quarter due to reduced offtakes by downstream industries. Major producers in China and Japan cut their operational rates due to heat waves in summer on the Government's instructions. Product inventory levels rose, and at the end of the quarter, Dipropylene Glycol Monomethyl Ether prices in China and India settled at USD 1870/MT and INR 210390/MT, after an average of almost 10% in the previous quarter's prices.
Dipropylene Glycol Monomethyl Ether shifted in the European region during Q3 of 2022. Initially, the prices decreased on the stable demand and reduced production costs. However, in the second month of the quarter, the trend fluctuated prices inclined upward. At the same time, some of the downstream producers cut their operational rates due to the availability of input supplies from exporters and reduction in water levels like the Rhine in Germany. Additionally, the high inflation depreciated the Euro values against the US Dollar, more significantly towards the end of the quarter, due to which product prices rose during the final month of Q3 amid moderate domestic inventory levels.
In North America, the price of DGME showed ups and down in the second quarter of 2022. At the beginning of the quarter, the raw material rose steadily and fell rest of the quarter. DGME fluctuated in the market due to the uncertainty in upstream prices. The volatility in crude oil and naphtha prices affects the region’s petrochemical commodities in the market. Higher freight costs and delayed deliveries impacted the entire value chain. Moderate demand from downstream industries slightly affected the price of Dipropylene Glycol Monomethyl Ether. At the end of the quarter price of upstream propylene oxide increased in the region.
In the Asian market, the DGME price has witnessed mixed sentiments throughout the second quarter of 2022. The demand from the downstream industries was weak and more inventories of products curbed the price of DGME in the market. In the Asian market, the upstream raw material propylene oxide costs were reduced due to buying lower rates of crude oil from Russia. The sufficient supply and less demand side further reduced the price. The buying trend from the end-users was weak. The feedstock propylene plummeted from the domestic refineries. The percentage of Dipropylene Glycol Monomethyl Ether was recorded at 0.9% on an Ex-Mumbai basis during the second quarter.
The DGME prices remained stable throughout the second quarter of 2022. The upstream propylene oxide price rose at the beginning of a quarter, and later it was firm in the market. The crude oil and naphtha prices increased at the initial quarter stage, leading to downstream commodities' prices in the regional market. Poor demand from the downstream industries like paint and coatings restrained the price of DGME. The more supply and ample product availability in the market adjusted the price of DGME. The less buying trend from the end-users curbed the price hike in the European region.