For the Quarter Ending September 2023
North America
Dipropylene Glycol Monomethyl Ether (DPME) prices in the North American region fluctuated during Q3 2023, following a similar trend to prices in other regions around the world. Prices initially declined due to weak demand and moderate supply, but they stabilized and even increased slightly in the later part of the quarter due to increased demand and rising feedstock prices. The supply of raw materials for DPME production, such as propylene and methanol, was moderate during Q3 2023. This helped to keep prices in check. Overall, the price fluctuation of DPME in the North American region during Q3 2023 was relatively modest, with prices initially declining due to weak demand and moderate supply, before stabilizing and increasing slightly in the later part of the quarter due to increased demand and rising feedstock prices. In September 2023, Dipropylene Glycol Monomethyl Ether prices in the US were assessed at USD 1560 per MT CFR Los Angeles.
Asia Pacific
Dipropylene Glycol Monomethyl Ether (DPME) prices in the Asia Pacific region fluctuated during Q3 2023, following a similar trend to prices in other regions around the world. Prices initially declined due to weak demand and moderate supply, but they stabilized and even increased slightly in the later part of the quarter due to increased demand and rising feedstock prices. Demand for DPME from downstream industries such as pharmaceuticals and electronics began to increase in the later part of Q3 2023. This was due to a number of factors, including the start of the peak production season for pharmaceutical products and the release of new electronic devices. The prices of feedstocks for DPME production, such as propylene and methanol, began to rise in the later part of Q3 2023. This increased the cost of production of DPME, which put upward pressure on prices. After the conclusion of Q3 2023, Dipropylene Glycol Monomethyl Ether prices in China were assessed at USD 1380 per MT FOB Qingdao.
Europe
Dipropylene Glycol Monomethyl Ether (DPME) prices in the European region fluctuated during Q3 2023, following a similar trend to prices in other regions around the world. Prices initially declined due to weak demand and moderate supply, but they stabilized and even increased slightly in the later part of the quarter due to increased demand and rising feedstock prices. There was a surplus of DPME inventory in the European market during Q3 2023. This was due to the combination of weak demand and moderate supply. However, the start of the peak production season for pharmaceutical products and the release of new electronic devices in the later part of Q3 2023 helped to boost demand for DPME, which offset some of the downward pressure on prices. In the third quarter of 2023, Dipropylene Glycol Monomethyl Ether prices in Europe decreased by 4%.
For the Quarter Ending June 2023
North America
During June 2023, the DPGME market in the US witnessed a bullish trend, with prices improving sharply due to a significant rise in demand from downstream derivatives and stable cost pressures from the upstream market. The supply of DPGME remained moderate, with domestic production firms resulting in abundant inventory levels in the domestic market and at ports. Additionally, the upstream market remained steady as crude oil prices strengthened in the first week of July 2023, which could have influenced the overall cost pressures in the market. On the demand side, the largest consumption segment, the downstream solvent industry, showed largely stable demand. However, there was an increase in queries from the cosmetic industry, leading to higher demand pressure and consequent price rise. In contrast, DPGME prices in May 2023 experienced a bearish trend, primarily due to ample inventory available in the market and decreasing prices of the available imports reaching the US shores. The imports from Asia and other markets were on the cheaper side, further easing the prices. Freight costs on US routes declined, and the energy market reached normalcy, limiting their impact on final negotiations. After the conclusion of the second quarter, Dipropylene Monomethyl Ether prices in the US were assessed at USD 1985 per MT on CFR basis.
Asia Pacific
During Q2 2023, the DPGME market experienced a bearish trend, with prices sharply decreasing in May 2023. This decline can be attributed to several factors impacting the supply and demand dynamics in the international market. Supply of DPGME during the quarter remained moderate, with stable production rates but weak inquiries from the downstream market. Looking back at April 2023, DPGME prices increased marginally due to stable demand and initial supply constraints from producers during the first half of the month. However, supplies improved in the second half of April due to better operation rates and lower feedstock costs, driven by a decrease in feedstock propylene oxide costs amid shifting crude oil prices. The inventory levels were firm due to consistent production, but the decline in feedstock prices, particularly propylene oxide in the Chinese market, helped ease the overall cost of production for DPGME. On the demand side, the paints & coatings industry exhibited stable demand, with limited new queries in May 2023. Similarly, the consumption rates from the cleaning products industry remained consistent, supported by the stable performance of the construction industry. However, overall demand sentiment in the international market deteriorated during the quarter. Thus, after the conclusion of Q2 2023, Dipropylene Monomethyl Ether prices in China were assessed at USD 1790 per MT on a FOB basis.
Europe
During the second quarter of 2023, the demand for Dipropylene Monomethyl Ether (DPGME) faced significant pressure from downstream solvent industries due to multiple factors impacting the market. High inflation rates, declining demand, and weak cost support from upstream Brent crude oil contributed to the challenging market conditions. With inflation rates rising, industries were facing increased production costs, which led to cautious procurement decisions from the downstream solvent sector. Moreover, declining overall demand in the market further added to the strain on DPGME demand, as end-users were more cautious about their consumption patterns. One of the contributing factors to the overall market situation was weak cost support from upstream Brent crude oil. As crude oil prices remained subdued or volatile during the quarter, it negatively impacted the cost dynamics of DPGME production, limiting the scope for any major price adjustments in the market. Furthermore, the freight market experienced a decline throughout the quarter as trading activities in Europe slowed down. The easing of shipping costs due to reduced trading activities might have provided some relief to market participants, but the overall demand pressure from downstream industries still weighed heavily on the DPGME market. After the June 2023 ending, Dipropylene Monomethyl Ether prices in Europe were assessed at USD 2160 per MT on an FD basis.
The Di propylene Glycol Monomethyl Ether price trend remained firm during Q1, 2023, in the North American region. Initially, amid the limited availability of supplies amid moderate production rates in Asia, the quotations were increased by exporters. The price trend persisted in the mid-quarter due to an increase in feedstock prices amid stressed availability due to plant shutdowns. The supply chain activities improved from the mid-quarter, which improved offtakes amid rising inflation and high-interest rates by Federal Reserve. In the final month of Q1, demand-supply dynamics stabilized amid moderate production rates, and the price trend remained stagnant at the end of the quarter.
The Di propylene Glycol Monomethyl Ether price trend showcased mixed sentiments in the Asian region during Q1 of 2023. At the beginning of the quarter, the price trend prices rose amid moderate demand and an increase in feedstock Propylene prices due to firmness in upstream Naphtha and weak trading activities in the market amid the new year holidays. During the mid-quarter, prices rose in China amid improved consumption with ease in covid restrictions and a rise in feedstock Propylene costs due to stressed availability and volatile upstream crude oil prices amid increased sanctions on Russian products. At the same time, prices fell in India due to depressed orders from downstream industries. In the final month of the quarter, prices rose in the region due to low production rates amid volatile upstream costs and stressed availability of supplies.
The Di propylene Glycol Monomethyl Ether price trend oscillated in the European region during 1st quarter of 2023. At the beginning of Q1, prices were firm amid stable demand-supply dynamics and reduced run rates. Then, in the mid-quarter, prices rebounded and rose slightly amid the stressed availability of feedstock Propylene supplies after increased sanctions on Russian Petroleum products, which affected the production rates. Then again, the price trend shifted in the final month of the quarter. The price trend showcased a bearish movement due to the surplus availability of supplies and sluggish offtakes. At the same time, the decrease in input costs due to the decline in Natural Gas prices further eased the cost support.
