For the Quarter Ending March 2022
North America
The market sentiments remained dull throughout the first quarter of 2022 in the North American region. Such market developments were majorly caused by the international crude oil market fluctuations that kept the gyration on the commodity cycle active and discussions for Glycol Ether sturdy in the US domestic market. The cost support from the feedstocks remained high that strengthened the will of the domestic producers to raise the offered quotations for Glycol Ether in the US domestic market despite the muted demand throughout the quarter. Improved inquiries were observed, as the temperature started to rise and the building and construction activities were ramped up by the quarter ending March 2022. Glycol Ether prices in the USA observed a surge by nearly USD 80/MT in Q1.
Asia Pacific
In the first quarter of 2022, market sentiments in the Asia Pacific region observed mixed opinions for the Glycol Ether. The major setback enforced due to the quiet market movement in China, followed by the resurgence of COVID, suppressed the market sentiments as the domestic PMI index dropped to an all-time low in March. Whereas, in India, the demand paced up by the quarter end as the building and construction activities improved and the inquires from the paints and coating industries increased. Although in mid-quarter, the Indian market was tightly gripped by the wait-and-see sentiments as the rising energy values concerned the domestic players over the uncertainties hovering over the market. As a ripple effect, CFR Mumbai discussions for Ethylene Glycol Monobutyl Ether settled at USD 1326 per tonne in March 2022.
Europe
During the first quarter of 2022, the European market remained impacted by the commodity gyrations in the international market. The geopolitical conflict in the eastern European region added upstream value pressure to the producer's quotations of Glycol Ether in Europe. Whereas during the first half of the quarter, the region witnessed a severe shortage of natural gas, which weighed over the operational rates at the production facilities and impacted the overall PMI of Europe. As a ripple effect, the FOB Hamburg discussions for Glycol Ether soared by 14% throughout the quarter, and several market participants remained buoyed in the upcoming terms.
For the Quarter Ending December 2021
North America
In the fourth quarter of 2021, the Glycol Ether market in the North American region remained consolidated due to the aftermath of Hurricane Ida which disrupts the freight movement after making itself a category 4 hurricane. Its impact prevailed into the fourth quarter kept the production level depressed throughout the first half of the fourth quarter with a dropped of 0.8% on m-o-m in the gulf coast. Whereas the demand outlook witnessed mixed sentiments as the inquiries from the aviation industries soared for antifreeze-related applications and the discovery of the omicron variant of COVID 19 presented new uncertainties in the domestic market. As a ripple effect, Lyondell Basell hiked the offers for all grades of Glycol Ether by USD 44 per tonne, in November.
Asia Pacific
Overall the market sentiments for the Glyco Ether in the Asia Pacific region varies in Northeast Asia and Southeast Asia, although the market remained consolidated throughout the fourth quarter of 2021. The Glycol Ether market in Southeast Asia was majorly impacted by the hiked crude oil offers after the OPEC+ alliance decide to gradually increase the production output of Crude Oil, against the better demand in the international market. Whereas, the power rationing in China soared the offers to an all-time high due to the curtailed operational loads and tightened availability of freight vessels in the Asia Pacific market. As a ripple effect, the offers for Glycol Ether remained buoyed throughout the quarter and the Ex-Mumbai discussion for Polypropylene Glycol Ether was assessed at INR 111360 per tonne, during the quarter ending.
Europe
In the fourth quarter of 2021, the European Glycol Ether market remained consolidated throughout the quarter amidst the ongoing energy crisis in Europe which proportionally weighed on the production cost due to the hike in the charges of electricity. In addition, the demand for upstream from the aviation sector and resurgence of COVID diverted the feedstocks supplies towards antifreeze and sterilization purposes. Therefore, due to the tightened availability against the adequate demand the producer's quotations for Glycol Ether remained buoyed in the European market.
For the Quarter Ending September 2021
North America
In North America, Glycol Ether market experienced an upward trend owing to the constrained supply in the North American region amidst firm offtakes from the downstream buyers during Q3 of 2021. Besides, spike in the values of upstream Ethylene Oxide also supported the pricing trend in the region. In the Gulf Coast of US, many manufacturers were compelled to shut their production plants and petrochemical refineries as a repercussion of the Ida Hurricane which eventually resulted in the scarcity of the feedstock. Besides, Dow and BASF, renowned manufacturers of Ethylene Oxide, imposed a temporary turnaround at their EO production plants in August end which affected the overall availability of its downstream in the region. Hence, a constant increment in the prices of Glycol Ether was observed during this timeframe.
Asia Pacific
In Q3 of 2021, Glycol Ether market in the Asia Pacific region mirrored the market outlook of North America. In Asia, Glycol Ether attained tremendous gains throughout the quarter backed by several factors such as limited supply of the product following the Ida Hurricane in USA and congestion on several ports in China. In India, Glycol Ether prices soared during this quarter backed by the delayed imports and spike in the Ethylene Oxide values. In addition, exorbitant freight charges and shortage of shipping containers further sent ripples to the prices of Glycol Ether in this timeframe. However, the demand from the downstream sectors including personal care, cosmetics and others remained firm in this quarter. Ethylene Glycol Monobutyl Ether CFR (India) prices were assessed at USD 1168.28 per MT in September showcasing a hike by USD 179 /MT since July.
Europe
In Europe, Glycol Ether market sentiments remained volatile during the third quarter backed by the tight supplies and lower production rates due to the natural gas crisis in this quarter. Moreover, tremendous hike in the freight charges and shortages of shipping container also contributed to surge the prices of Glycol Ether in this timeframe. Unprecedented hike in the feedstock values further pushed the prices of Glycol Ether. However, an improvement in the offtakes from the downstream manufacturers was observed in this quarter after the revival in the industrial and commercial activities.
For the Quarter Ending June 2021
North America
Supply in the North American region improved in comparison to the previous quarter as refineries increased the production margins to improve the overall availability of materials. Overall, the market outlook recovered from the impact of the winter storm. Demand was exceptional throughout the quarter as orders from domestic and overseas market were piled up since the previous quarter. Offtakes were also consistent from various downstream manufacturing facilities, especially from the paints and coating industries as the region observed a seasonal hike in construction activities. Consequently, Eastman Chemicals surged Glycol Ether offers by USD 880 per tonne in June.
Asia Pacific
Supply of Glycol Ether in the Asia Pacific region remained tight during the second quarter of 2021, owing to scheduled turnarounds in several plants in Northeast Asian region. However, the condition improved proportionally in the later half, as export volumes to the western region were curtailed by significant margin as the production in US Gulf Cost considerably recovered. Demand in the Asia Pacific region remained volatile, although offtakes remained consistent from the downstream industries. Prices of Glycol Ether in India stabilized against the reluctant offtakes from buyers with Ex-depot Mumbai offers drifting to USD 1103 pe tonne in June.
Europe
During the second quarter of 2021, supplies in the European region remained persistently tight in the first half of the quarter, however the situation improved in the second half as several major manufacturers including Dow and BASFs (Germany) ended their prolonged force majeure. Besides, further support in supply was provided by improved availability of the upstream n-Butanol. Demand observed a seasonal peak from paints and coating industries owing to the revival in construction activities in the Northwest European region.
For the Quarter Ending March 2021
North America
Glycol Ether supplies were constrained in the North American region during Q1 2021, as a major producing plant went for turnaround during the first half of Q1. Furthermore, production loss caused due to the freeze weather conditions in the US gulf region tightened the market supply. In March, Eastman Chemicals announced a surge in the prices of Glycol Ether by USD 550/tonne, amid spiked demand from the downstream sectors and firmer upstream rates. Extended lead times tensed buyers but refinery rates were heard ticking upward towards the end of the quarter ensuring better chemical availability moving into Q2.
Asia-Pacific (APAC)
The supply of Glycol ether remained short, owing to limited stock and constrained feedstock availability, followed by plant outages caused due to the Chinese Lunar new year holidays. Import from the North American region was lesser due to supply shortage amidst extreme weather conditions. Demand, however surged as the resurgence of COVID in South-eastern Asian economies increased the consumption from the disinfectant sector. Shortage in the feedstock Propylene surged the prices of Propylene Glycol Ether (PGE) in India to USD 1085/ton in March respectively.
Europe
During the first quarter of 2021, supplies remained tight, amidst some production related constraints in Northeast Europe followed by decline in imports from the US. Furthermore, high demand added to constraints in the quarterly supplies. The demand from downstream sectors improved amid improved consumption from the disinfectants and paints and coatings industry.
For the Quarter Ending September 2020
Asia
With several producers reducing their operating rates and a few of them imposing a temporary turnaround, Glycol Ether supply considerably reduced in Q3. Limited feedstock or sometimes poor margins compelled Butyl Glycol producers in China to opt for frequent temporary turnarounds. Trade disruptions caused by the global pandemic followed by poor weather exacerbated this supply crisis. Demand in China picked up by September due to early stockpiling activities observed before the Golden Weeklong holidays scheduled next month. Amidst the supply crises, China launched an anti-dumping and anti-subsidy probe to check on fair-trade deals from the US Glycol market. Demand in Southeast Asia appreciably improved as industries gathered prominent pace to make up for the loss incurred in the previous quarter. Driven by the reduced imports, prices of Butyl Glycol in India showcased a consistent month-on-month increment, averaging at USD 768 per MT in Q3.
North America
Demand for several grades of Glycol Ethers including butyl di-glycol, butyl glycol, and propylene glycol methyl ether witnessed an appreciable revival with gradual improvement in buying interest observed in the latter half of the quarter. In the indefinite lockdown period, there was a prominent increment in the renovation activities that contributed well to the revival in demand from the construction industry. With easing virus panic in the country, the demand for Glycol Ethers underwent a substantial increment from the paints sector. Although relaxation in stringent restrictions levied marginal leverage to the market players but resurgent cases of coronavirus restrained the awaited market revival of Glycol Ethers in the US.
Europe
In the early part of the quarter, the supply of Glycol Ethers remained ample on the back of subdued demand and no scheduled turnarounds. In late July, restricted imports from the US aided to stabilize this widened demand and supply. Substantial revival in downstream demand further supported in stabilizing the narrowed margins of Glycol Ethers in the region. However, in the final weeks of September, demand fundamentals tapered off again due to the resurgence of coronavirus in some parts of the region leading to a fall in prices of Glycol Ethers.
