For the Quarter Ending March 2025
North America
In Q1 2025, the North American Polyethylene Glycol (PEG) market experienced a cumulative price decrease of 3.71% from the previous quarter, largely influenced by fluctuating upstream costs and an oversupplied import market.
In February, PEG prices dropped significantly to USD 1,020/MT due to falling Monoethylene Glycol (MEG) prices, subdued global demand, and aggressive pricing from Asian exporters, especially China and South Korea. Domestic demand remained steady in pharmaceuticals and personal care sectors; however, excess inventories from earlier months led to limited fresh buying activity. The inflow of competitively priced cargoes from Asia further pressured domestic prices.
Although March saw a rebound in market sentiment, with prices rising slightly, it was insufficient to offset earlier losses. The quarter remained weighted by February's bearish conditions and the overall cautious procurement behaviour of distributors relying on pre-existing stock.
Stable U.S. manufacturing activity and uninterrupted import flows sustained supply, but soft international pricing, reduced freight costs, and high inventory levels kept overall PEG prices subdued across the region during the quarter.
APAC
In Q1 2025, the Polyethylene Glycol (PEG) market in the APAC region experienced a 4.22% price decline, primarily driven by fluctuating downstream demand and supply-side imbalances. February witnessed the sharpest drop, with prices falling by 6.4% amid sluggish post-Lunar New Year restarts and lower offtakes from the pharmaceutical and personal care sectors. Many end-users operated on pre-stocked inventories, delaying fresh procurement.
Feedstock Ethylene Oxide prices remained soft due to weakened crude oil trends, further reducing production costs. While March saw a demand recovery from pharmaceuticals and cosmetics ahead of Q2, the market had already accumulated surplus inventories, limiting upward price correction.
Manufacturing operated at moderate levels through Q1, with several producers managing production rates in response to excess supply and slow downstream movement. Although March brought optimism with increased licensing deals in the pharmaceutical sector and promotional activity in the cosmetics space, these came too late to offset the early-quarter bearish tone. Overall, persistent supply-demand mismatches kept prices on a downward trajectory.
MEA
In Q1 2025, the Middle East Polyethylene Glycol (PEG) market experienced a marginal decline of 0.67%, largely shaped by bearish fundamentals during February. Despite a modest price increase in January, February’s 6% drop heavily impacted the quarterly average.
The downturn was driven by weakened downstream demand, especially from the pharmaceutical and personal care sectors. Manufacturers consumed pre-existing inventories, minimizing fresh procurement. Seasonal softness and cautious inventory management further constrained offtakes in cosmetic formulations, contributing to the demand slump.
Production remained stable throughout the quarter, but steady output amid weak offtakes led to mounting pressure on prices. Ethylene oxide feedstock costs also fluctuated, lowering production costs, and compressing margins, prompting producers to adopt competitive pricing strategies.
Though March saw a recovery with a 6.3% rebound in prices, it could not fully offset February’s losses. Overall, subdued export demand, inventory corrections, and moderate local consumption shaped a mildly negative price trajectory for PEG in the Middle East during Q1 2025.
For the Quarter Ending December 2024
North America
In Q4 2024, the Polyethylene Glycol (PEG) market in North America experienced a notable shift characterized by increasing demand from both the pharmaceutical and personal care sectors. The pharmaceutical industry, particularly in the United States, saw a surge in PEG usage for drug formulations, driven by advancements in biopharmaceuticals and personalized medicine. Companies focused on high-purity PEG to meet regulatory standards, leading to investments in production capabilities.
In the personal care sector, PEG's versatility made it a staple ingredient in formulations for moisturizers, hair products, and cosmetics. The rising consumer preference for clean beauty products prompted brands to seek sustainable alternatives, including bio-based PEG options, aligning with broader environmental initiatives.
Despite these positive trends, the market faced challenges such as fluctuating raw material prices and supply chain disruptions due to geopolitical tensions. By December, manufacturers were actively seeking to mitigate these issues through strategic sourcing and innovation. Overall, while economic uncertainties loomed, industry stakeholders remained optimistic about growth prospects as demand for PEG continued to rise across various applications.
APAC
In Q4 2024, the Polyethylene Glycol (PEG) market in the APAC region experienced notable shifts driven by increasing demand across various sectors. The pharmaceutical industry was a primary growth driver, particularly in China, where PEG is essential for drug formulation and delivery systems. Innovations in biopharmaceuticals prompted manufacturers to seek high-purity PEG, leading to investments in production capabilities to meet stringent quality standards.
The personal care sector also saw significant growth, with PEG being utilized in formulations for moisturizers, hair care products, and cosmetics. The rising consumer preference for multifunctional and sustainable ingredients pushed brands to explore bio-based PEG alternatives, aligning with the broader trend towards sustainability.
However, the market faced challenges from fluctuating raw material prices and ongoing supply chain issues due to geopolitical tensions. By December, while some manufacturers reported inventory pressures, overall sentiment remained optimistic as stakeholders anticipated a rebound in demand driven by increased industrial activity and regulatory support for environmentally friendly products. This positioned the APAC PEG market for continued growth into 2025.
Europe
In Q4 2024, the Polyethylene Glycol (PEG) market in Europe experienced significant developments influenced by evolving consumer preferences and regulatory changes. The pharmaceutical sector remained a cornerstone of demand, with PEG widely used as a solvent and excipient in drug formulations. The increasing focus on personalized medicine and advanced drug delivery systems drove pharmaceutical companies to seek higher-purity PEG grades, leading to investments in production technologies.
In the personal care industry, PEG's multifunctionality made it a popular ingredient in creams, lotions, and hair care products. Brands responded to consumer demand for transparency and sustainability by exploring bio-based PEG options, aligning with the European Union's Green Deal initiatives aimed at reducing plastic waste. However, the market faced pressures from rising raw material costs and logistical challenges stemming from geopolitical tensions. By December, manufacturers were adapting to these challenges by optimizing supply chains and enhancing product formulations. Overall, while economic uncertainties loomed, the PEG market in Europe showed resilience with a positive outlook for growth driven by innovation and sustainability initiatives into 2025.
For the Quarter Ending September 2024
North America
In Q3 2024, the Polyethylene Glycol (PEG) market in North America displayed a stable pricing environment, influenced by various market dynamics. The market saw steady demand from key sectors such as pharmaceuticals, personal care, and industrial applications, which played a crucial role in maintaining price stability. The pharmaceutical industry, particularly in drug formulation and delivery systems, continued to be a significant driver, leveraging PEG's versatility and effectiveness in formulations.
Supply chain conditions improved compared to earlier disruptions, contributing to the stable availability of PEG. Production costs remained relatively stable, supported by moderated feedstock prices, particularly for ethylene oxide, which is a primary input for PEG production. This stability in raw material costs helped producers maintain consistent pricing across the region. Additionally, the sector benefited from technological advancements in PEG-based products, enhancing their applications in various industries.
In the United States, the market showed slight price adjustments due to regional variations in demand and supply, but no major disruptions were reported. Factors such as steady economic activity and the continuation of environmental regulations influenced the market's balance, helping to sustain a stable supply-demand scenario. Overall, the quarter closed with a balanced pricing sentiment, indicating a steady outlook for PEG in the North American market during this period.
APAC
In Q3 2024, the Polyethylene Glycol (PEG) market in the APAC region saw a gradual price increase, driven by factors such as steady demand from industrial and pharmaceutical sectors, and limited supply. The market exhibited varied dynamics across the quarter, with China facing a slight dip in September due to a slowdown in the manufacturing sector and weaker export demand. Despite this, the market saw recovery in August, attributed to restocking activities and a temporary surge in Polyethylene Glycol demand for various end-use applications. Supply-side conditions remained relatively stable, as manufacturers managed inventories effectively, despite moderate logistical disruptions affecting the movement of goods. However, demand began to soften towards the end of the quarter, pressured by global economic uncertainties and reduction in new orders. The overall market sentiment turned cautious, reflecting a more conservative outlook among buyers. The quarter concluded with PEG prices at USD 1,120/MT on CFR- Qingdao basis, highlighting the region's mixed market conditions throughout the period.
Europe
The European Polyethylene Glycol (PEG) market in Q3 2024 experienced relatively stable to slightly declining prices, reflecting a balanced yet cautious market environment. Germany led the region with significant price adjustments, particularly influenced by reduced demand from key sectors such as pharmaceuticals and cosmetics. Economic uncertainties, including shifts in macroeconomic conditions and subdued export demand, contributed to pressure on prices throughout the quarter. Meanwhile, improvements in raw material availability and reductions in natural gas prices helped lower production costs, allowing manufacturers to maintain steady output levels. Despite these improvements, high inventory levels from earlier in the year and cautious purchasing behaviors by end-users moderated price fluctuations, leading to a more conservative trading approach. The market remained resilient but faced challenges from broader global economic factors, which dampened overall sentiment. As the quarter came to a close, the price of PEG in the region settled at USD 1,305/MT on FD Hamburg basis, indicating a cautious yet stable pricing trend during the quarter.
MEA
In the MEA region, the Polyethylene Glycol (PEG) market during Q3 2024 experienced fluctuations, influenced by a mix of domestic demand dynamics and competitive international pricing pressures. Following a price surge in August, which was driven by increased demand from pharmaceutical, industrial, and water treatment sectors, the market experienced a correction in September as demand levels normalized. Supply levels remained stable, supported by consistent production rates and efficient distribution channels. Meanwhile, the availability of competitive imports, especially from Asia, added further downward pressure on local prices, challenging the regional producers. Despite these headwinds, the demand for PEG remained relatively steady in key applications such as personal care and water treatment, helping to balance market conditions. Saudi Arabia, which saw the most notable price adjustments, managed to adapt to the changing dynamics. As the quarter concluded, PEG prices stood at USD 1,050/MT on FOB Al Jubail basis, reflecting a stable yet cautious market outlook as suppliers adjusted to evolving demand and supply dynamics.
For the Quarter Ending June 2024
North America
During Q2 2024, Polyethylene Glycol (PEG) pricing in North America exhibited a significant upward trend, driven by a combination of market dynamics and external factors. The surge in prices was primarily attributed to robust demand from key sectors, including pharmaceuticals and personal care products. Manufacturing employment levels also indicated economic recovery, bolstering the demand for PEG. Additionally, the rise in raw material costs, notably ethylene oxide, and an increase in manufacturing PMI, further contributed to the price hike.
The quarter was marked by an event of force majeure at a major manufacturing facility, creating temporary supply disruptions that impacted pricing. Focusing on the USA, where the most notable price changes were observed, the market exhibited strong upward momentum. Seasonal demand spikes, particularly from the pharmaceutical sector, coupled with ongoing stringent regulations in personal care products, played a crucial role in sustaining high prices. The correlation between increasing crude oil prices and raw material costs further pushed PEG prices upward.
The period concluded with a persistent positive pricing environment, underscored by strong demand and supply chain disruptions driving market prices upward. Overall, the quarter was characterized by a bullish sentiment, with robust demand and supply constraints significantly influencing market prices.
APAC
In Q2 2024, the Polyethylene Glycol (PEG) market in the APAC region demonstrated a notably bullish trend, driven by several critical factors. The quarter was marked by robust demand from the pharmaceutical and personal care sectors, which use PEG extensively for its emulsifying and moisture-retaining properties. This increased demand was a significant contributor to the upward pricing trajectory. Supply chain disruptions, particularly in the availability of upstream ethylene oxide, compounded by increased freight charges, further tightened the market. Additionally, the geopolitical tensions between Israel and Iran, resulting in missile attacks and regional instability, led to fluctuations in crude oil prices, which cascaded down the supply chain, affecting PEG production costs. Focusing on China, the country experienced the most substantial price changes, reflecting an overall positive pricing environment. The Chinese market saw consistent production rates yet faced occasional disruptions in feedstock availability. The steady expansion in manufacturing activities and robust economic indicators, alongside strategic initiatives in premium cosmetic sectors, further bolstered demand. Seasonality also played a role, with increased usage in personal care products during warmer months driving up prices. Compared to the previous quarter, prices surged, recording an 7.5% increase, and a notable 11.7% rise from the first to the second half of the quarter. Concluding the quarter, the price of PEG 200 CFR Qingdao in China stood at USD 1,100/MT, underscoring a positive pricing sentiment throughout the quarter.
Europe
In Q2 2024, the Polyethylene Glycol (PEG) market in Europe demonstrated relative stability, influenced by a confluence of factors. The quarter was marked by consistent demand from key sectors such as pharmaceuticals and personal care, which maintained upward pressure on prices. The ongoing industrial recovery post-pandemic spurred robust offtakes, while the stabilization of crude oil prices moderated cost fluctuations for raw materials like ethylene oxide, crucial for PEG production. Supply chain logistics showed signs of improvement, with reduced delays and enhanced transportation efficiency contributing to a steadier supply flow. Notably, there were no significant disruptions or plant shutdowns reported by key producers like BASF and Dow Chemical, ensuring a stable operational environment. Focusing on Germany, which experienced the most pronounced price changes in Europe, the market trends reflected seasonality and the broader economic sentiment. The correlation between rising demand during the summer months and PEG prices was evident. The price dynamics showed a 2% increase from the previous quarter of 2024, indicating a stable yet upward trend. Comparing the first and second halves of the quarter, prices remained consistent, reflecting a balanced market environment. The stable pricing environment, with the quarter-ending price at USD 1,320/MT for PEG 200 FD - Hamburg, suggests a positive sentiment rooted in steady demand and supply equilibrium. Overall, the pricing environment in Germany and the broader European region could be characterized as stable, with well-managed supply chains and sustained industrial demand underpinning the market.
MEA
In Q2 2024, the Polyethylene Glycol (PEG) market in the MEA region has experienced a robust upward trend, characterized by a marked increase in prices. This quarter has seen substantial price escalation driven by several pivotal factors. The first influential factor is the persistent high demand from the pharmaceutical and personal care sectors, where PEG is extensively utilized for its emulsifying and moisture-retaining properties. This demand surge has been further exacerbated by logistical challenges, including increased freight charges and occasional supply chain disruptions. Additionally, geopolitical tensions in the region have contributed to supply constraints, particularly due to incidents in the Red Sea, which have impacted shipping routes and subsequently freight rates. Focusing on Saudi Arabia, the country has observed the most pronounced price changes in PEG. The overall trend has been one of consistent price increases, reflecting the broader regional dynamics. Seasonality has played a crucial role, with elevated demand during the post-spring period as industrial activities recover. This has led to a significant 5% price increase from the previous quarter. Comparing the first and second halves of the quarter, there was an 8% price rise, underscoring the accelerating demand. The price surge has also been influenced by plant shutdowns, such as the maintenance period at Saudi Ethylene and Polyethylene Company (SEPC) in Al Jubail, which affected feedstock availability and production rates. The quarter concluded with a PEG 200 FOB Al Jubail price of USD 1,000 per metric tonne, reflecting a positive pricing environment. This sustained upward trend highlights a market characterized by strong demand, moderate to high supply constraints, and rising production costs, driven by fluctuating upstream crude oil and ethylene prices. Overall, the pricing environment in Q2 2024 for PEG in Saudi Arabia has been decidedly bullish, driven by robust industrial demand and compounded supply chain challenges.
