For the Quarter Ending September 2025
North America
• In United States, Polyalkylene Glycol Price Index rose in Q3 2025, driven by strengthening ethylene feedstock costs.
• PAG production costs increased due to a 3.0% rise in the all items index in September 2025.
• Producer Price Index for final demand rose 2.6% in August 2025, indicating higher input costs for PAG.
• Industrial production showed weak 0.1% year-over-year growth in September 2025, impacting overall PAG demand.
• Strong retail sales, up 5.42% year-over-year in September 2025, supported PAG demand in consumer sectors.
• Declining consumer confidence to 94.2 in September 2025 suggested potential dampening of PAG demand.
• Automotive and construction sector demand for propylene oxide derivatives surged in Q3 2025, boosting PAG consumption.
• US ethylene supply tightened, and natural gas costs increased in Q3 2025, raising PAG manufacturing expenses.
• North America's exports of propylene oxide derivatives increased in Q3 2025, indicating robust external market demand.
Why did the price of Polyalkylene Glycol change in September 2025 in North America?
• Ethylene feedstock costs strengthened in Q3 2025, directly increasing PAG production expenses.
• US ethylene supply tightened and natural gas costs increased in Q3 2025, raising manufacturing expenses.
• Robust retail sales, up 5.42% year-over-year in September 2025, supported Polyalkylene Glycol demand.
Europe
• In Germany, the Polyalkylene Glycol Price Index fell quarter-over-quarter in Q3 2025, due to weakened industrial demand.
• Polyalkylene Glycol production costs declined, influenced by a 1.7% decrease in producer prices in September 2025.
• Naphtha and propylene oxide feedstock costs softened in Germany during Q3 2025, easing production expenses.
• Polyalkylene Glycol demand outlook was bearish, with the Manufacturing Index contracting in Q3 2025.
• Industrial production in Germany declined by 1.0% in September 2025, negatively impacting Polyalkylene Glycol consumption.
• Elevated propylene oxide inventories in Q3 2025 suggested ample supply, contributing to downward price pressure.
• German exports declined in Q3 2025, and trade barriers impacted the broader European chemical market.
• Retail sales rose by 0.2% in September 2025, offering slight support for consumer-facing Polyalkylene Glycol applications.
Why did the price of Polyalkylene Glycol change in September 2025 in Europe?
• Producer prices decreased by 1.7% in September 2025, alongside softened naphtha and propylene oxide feedstock costs.
• Industrial production fell 1.0% in September 2025, and the Manufacturing Index contracted, weakening demand.
• Elevated propylene oxide inventories and declining German exports contributed to an oversupplied market.
APAC
• In China, the Polyalkylene Glycol Price Index fell quarter-over-quarter in Q3 2025, driven by weak industrial demand.
• Polyalkylene Glycol production costs remained stable in Q3 2025, as key petrochemical feedstocks like propylene held steady.
• Automotive production and sales strengthened in Q3 2025, boosting Polyalkylene Glycol demand in that sector.
• Overall Polyalkylene Glycol demand outlook was mixed, with consumer confidence low at 89.6 index in September 2025.
• China's Manufacturing Index was contracting in September 2025, indicating reduced industrial output.
• Industrial production increased by 6.5% in September 2025, supporting Polyalkylene Glycol demand in industrial applications.
• Retail sales grew by 3.0% in September 2025, offering some support for consumer-facing Polyalkylene Glycol uses.
• Global petrochemical oversupply, particularly from China, persisted in Q3 2025, impacting Polyalkylene Glycol market balance.
Why did the price of Polyalkylene Glycol change in September 2025 in APAC?
• Weak industrial demand, with Manufacturing Index contracting and PPI falling 2.3% in September 2025, pressured prices.
• Deflationary pressures, with CPI at -0.3% in September 2025, contributed to bearish Polyalkylene Glycol sentiment.
• Persistent global oversupply from China and 5.2% unemployment in September 2025 impacted overall demand.