Market Overview
For the Quarter Ending December 2025
Polyalkylene Glycol Prices in North America
In United States, Polyalkylene Glycol Price Index rose in Q4 2025, driven by increasing production costs.
Polyalkylene Glycol production costs increased due to a 2.7 % CPI rise in December 2025 and 3.0 % PPI increase in November 2025.
Demand for high-performance lubricants, a key Polyalkylene Glycol application, strengthened during Q4 2025.
Industrial production expanded by 2.0 % year-over-year in December 2025, supporting overall Polyalkylene Glycol demand.
Natural gas spot prices at Henry Hub gradually strengthened in the final months of 2025, increasing production expenses.
Global crude oil supply declined in November 2025, impacting naphtha feedstock availability and Polyalkylene Glycol costs.
US new-vehicle sales experienced a slowdown in Q4 2025, moderating Polyalkylene Glycol demand in the automotive sector.
Intermediate goods producers reported a downturn in demand in December 2025 as customers pared back excess inventory.
Retail sales increased by 3.3 % year-over-year in November 2025, supporting consumer-related Polyalkylene Glycol applications.
Why did the price of Polyalkylene Glycol change in December 2025 in North America?
Polyalkylene Glycol production costs increased due to a 2.7 % CPI rise in December 2025.
Feedstock costs rose as natural gas prices strengthened and crude oil supply declined in November 2025.
Demand was mixed, with strengthening lubricants offset by declining automotive sales in Q4 2025.
APAC
In China, the Polyalkylene Glycol Price Index fell quarter-over-quarter in Q4 2025, influenced by weak industrial demand and easing feedstock costs.
Polyalkylene Glycol production costs declined in December 2025 as manufacturing input costs softened during the period.
Demand outlook was mixed; strong automotive production in 2025 contrasted with weak propylene oxide demand in October 2025.
China's Manufacturing Index expanded in December 2025, with industrial production increasing 5.2% year-on-year.
Consumer demand remained subdued, with retail sales growing 0.9% year-on-year in December 2025, impacting consumer applications.
Producer prices declined 1.9% year-on-year in December 2025, reflecting oversupply and pricing pressure on Polyalkylene Glycol.
Raw materials inventory index remained below the threshold in November 2025, indicating cautious holdings by Chinese manufacturers.
Polyalkylene Glycol supply faced pressure from continued propylene oxide capacity growth and overall chemical overcapacity in China during 2025.
Polyalkylene Glycol prices were assessed at USD 1380/ MT in Q4.
Why did the price of Polyalkylene Glycol change in December 2025 in APAC?
Producer prices declined 1.9% year-on-year in December 2025, reflecting weak industrial demand and oversupply.
Propylene feedstock costs eased in October 2025, contributing to lower Polyalkylene Glycol production expenses.
Consumer Price Index rose only 0.8% year-on-year in December 2025, indicating subdued consumer demand.
Europe
In Germany, the Polyalkylene Glycol Price Index fell quarter-over-quarter in Q4 2025, influenced by contracting manufacturing activity in December 2025.
Polyalkylene Glycol production costs declined due to a -2.5% year-on-year decrease in producer prices in December 2025.
Demand for Polyalkylene Glycol faced headwinds from a consumer confidence indicator of -17.5 in December 2025.
The Polyalkylene Glycol demand outlook was slightly supported by a 0.8% year-on-year rise in industrial production in October 2025.
Automotive production, a key demand driver, fluctuated in Q4 2025, declining in October but increasing in November and December 2025.
High natural gas costs in 2025 continued to pose a threat to the competitiveness of the German industry sector.
Retail sales growth of 1.1% year-on-year in November 2025 offered modest support for Polyalkylene Glycol in consumer applications.
The Polyalkylene Glycol Price Forecast suggests continued pressure from moderate inflation (CPI 1.8% YoY in December 2025) and stable unemployment (6.2% in December 2025).
Why did the price of Polyalkylene Glycol change in December 2025 in Europe?
Producer prices declined by -2.5% year-on-year in December 2025, reducing Polyalkylene Glycol production costs.
Manufacturing activity was contracting in December 2025, indicating weaker industrial demand for Polyalkylene Glycol.
Consumer confidence remained significantly pessimistic at -17.5 in December 2025, dampening consumer-driven Polyalkylene Glycol demand.
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.
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Product Description
Polyalkylene Glycol (PAG) is a high-performance synthetic polymer belonging to the polyether chemical family. It is composed of repeating units of alkylene oxide, typically ethylene oxide or propylene oxide, resulting in a versatile polymer with tunable molecular weight and viscosity. PAGs are produced through controlled polymerization of these alkylene oxides, yielding products with consistent chemical composition and high purity suitable for industrial and specialty applications.
PAGs exhibit unique physical and chemical properties, including excellent thermal stability, high lubricity, low volatility, and resistance to oxidation and hydrolysis. They are highly soluble in polar solvents and exhibit non-corrosive behavior toward metals, making them compatible with a wide range of formulations. These properties make Polyalkylene Glycols highly valued as functional additives, lubricants, and carriers in demanding chemical environments.
Polyalkylene Glycols are widely utilized across multiple industries. They serve as base fluids in synthetic lubricants and hydraulic oils, additives in metalworking fluids, and intermediates in the production of surfactants, coatings, and personal care products. Their stability, versatility, and compatibility with diverse chemical systems make them indispensable in applications requiring reliable performance under high temperatures, mechanical stress, or chemically aggressive conditions.
