For the Quarter Ending June 2022
In the second quarter of 2022, the Ethylene Glycol Monobutyl Ether price was in a diverse trajectory. The upstream ethylene price fluctuated in the market, affecting the production cost in the region. The higher freight rates impacted the supply chain and delayed deliveries of the product. Due to sanctions on Russia's imports, several countries supported to inquire WTI crude oil, which raised the price in the region. The operational cost of refineries has increased due to the rise in crude oil prices. Demand from downstream industries and lower product inventories fluctuate in the market.
In the second quarter of 2022, the EBGE gradually rose in the region since February. The uncertainty in crude oil prices and the raw material price fluctuation in the market increased the price of EBGE in the region. The demand from the end-user industries like paints and coatings and the surge in infrastructure activities in the region further raised the product's price. The more buying trends in India due to the summer season to renovate the building construction and other activities in the local market. As per chem analyst, the percentage of Ethylene Glycol Monobutyl Ether was recorded in the second quarter with an inclination of 1% on a CFR JNPT basis, respectively.
The market sentiment for EBGE witnessed a slightly upward trajectory in the second quarter of 2022. The upstream raw material Ethylene price increased led to the downstream industries in the region. The European market has continued to be affected by fluctuations in raw materials in the international market since the first quarter of 2022. The tight supply and insufficient product availability further rose the price of EBGE in the regional market. The cost pressure from the raw material remained high and has impacted the producer's quotation in the German market area. According to the Chem Analyst, the percentage inclination of Ethylene Glycol Monobutyl Ether was 1.5% on a FOB Hamburg basis.
For the Quarter Ending December 2021
In the fourth quarter of 2021, the 2-Ethoxy Ethanol market in the North American region was remained strengthened, the overall pricing sentiments were remained uplifted amidst the significant cost support from the upstream Ethylene Oxide market. Although the feasible quotations for Ethanol leased the pressure from the domestic market dynamics due to its large production capabilities in the US, on the other hand, the demand peaked due to seasonality ahead of the falling temperature, and construction activities paced up in the North American region. Therefore, due to the slightly pressured outlook against the adequate demand kept the Ethylene Glycol Mono Butyl Ether quotations strengthened during the Q4 of 2021.
In the Asia Pacific region, the market sentiments for 2-Ethoxy Ethanol prices witnessed mixed sentiments as the offers in the Northeast Asian region skyrocketed amidst the energy crisis induced by the coal rationing in China. The market sentiments inflated the offers for key feedstocks across the Asia Pacific region. Whereas, the demand outlook remained strengthened amidst the active inquiries across the Asia Pacific region due to the ramped-up construction activities ahead of the falling temperatures and festive season in Southeast Asia. As a ripple effect, the prices for Ethylene Glycol Mono Butyl Ether remained buoyed throughout the quarter.
In Europe, the prices of the feedstock Ethylene Oxide were observed staggering high due to the limited availability of material amidst its active demands patterns. Therefore, the constrained supply coupled with the higher feedstock costs strengthened the will of producers to raise the producer quotations. Additionally, the prices of paints and coatings also staggered high due to the shortage of material which meanwhile affected the market price of Ethylene Glycol Mono Butyl Ether remains bullish throughout the fourth quarter.
For the Quarter Ending September 2021
In North America, EB Solvent (Ethylene Glycol Mono-butyl Ether) prices observed a proliferative trajectory during the third quarter backed by the volatility in the feedstock ethylene oxide and butanol prices. Additionally, the demand for EB solvent remained robust from the downstream paints and coatings industry that also contributed to the hike in the prices of the product throughout the quarter. Moreover, many upstream manufacturers were compelled to shut down their production plants as a repercussion of Ida hurricane in August that further exerted pressure on the EB Solvent market due to the scarcity of the key raw materials.
In Asia, the market dynamics for EB Solvent varied from country to country during the third quarter of 2021. In India, a significant rise in the values of EB Solvent was seen in this quarter backed by the lower feedstock imports and robust demand from the end use industries. Surging raw material charges also influenced the cost of EB Solvent in this timeframe. Additionally, exorbitant freight charges also led to the increment in the prices of EB solvent in India. Thus, inadequate availability and strong demand fundamentals rose EB Solvent CFR prices in India rose effectively from USD 998.25 per MT to USD 1178.29 per MT during July to September timeframe.
In Europe, the prices of EB Solvent witnessed a marginal uptrend backed by sturdy demand from the downstream paints and coatings, varnishes, and printing inks sector. Moreover, hike in the prices of feedstock Ethylene Oxide during the third quarter also pushed up the cost of EB Solvent. In addition, exorbitant freight charges and lower imports because of container shortage and supply chain disruption as an impact of Ida hurricane in the US and congestion in several parts of China led to the rise in the values of the product in Europe.