For the Quarter Ending December 2022
North America
Polyethylene Glycol prices declined during the final quarter of 2022. Initially, prices decreased marginally amid high inflation and moderate product supplies. At the same time, a significant decrease in the feedstock Ethylene Oxide prices after USA’s EPA identified risks from commercial sterilization facilities using Ethylene oxide. It negatively impacted the production costs of PEG. However, during the mid-quarter, PEG prices maintained stability due to a rise in production costs amid high feedstock Ethylene demand and an increase in offtakes from the Pharma sector. Then in the final month of Q4, PEG prices declined again because of weak demand and consumption rates and moderate availability of supplies in the market.
Asia
In Asia, Polyethylene Glycol prices decreased throughout quarter IV of 2022. For an initial couple of weeks, prices were firm and rose marginally due to limited feedstock supplies. After that prices started to decrease and fell till the end of the quarter. Offtakes declined from the Pharma sector due to its excessive use in cough syrups. In the mid-quarter, PEG prices dropped amid improved feedstock availability after the restart of feedstock Ethylene plants like Idemitsu Kosan, with a capacity of 6,90,000/MT, production improved, and the cost of PEG decreased. Towards the end of the quarter, prices plunged again in Asia amid destocking practices by producers and a decline in global freight charges.
Europe
Polyethylene Glycol prices decreased during quarter IV. During the first month of Q4, product prices reduced amid the decline in end-user consumption and firm production rates due to the surplus availability of feedstock Ethylene supplies and the consequent reduction in production costs of PEG. During the mid-quarter, prices decreased again due to weak offtakes by downstream Pharma industries, while production rates were hampered due to the production cut of feedstock and an increase in the input prices. Towards the end of the quarter, the PEG price trend maintained stability on the back of moderate offtakes and a decrease in the feedstock and production costs amid a reduction in the input costs.
For the Quarter Ending September 2022
North America
In the Q3 of 2022, Polyethylene Glycol prices fluctuated in the USA on the back of shifting demand sentiments by the downstream industries. In the first half of the quarter, prices decreased sharply due to the issued embargo on feedstock transportation through rail, increasing domestic inventory levels. While in the second half of the quarter, upstream producers like LyondellBasell went under unplanned shutdown and domestic inventory levels remained under stress amid the weak demand sentiments from the downstream industries. At the same time, the rise in inflation and port congestion disrupted supply chain activities affecting the domestic inventory levels. Subsequently, Polyethylene Glycol prices in the USA settled at USD 5500/MT.
Asia
A shifting price trend of PEG was observed in the Asian region. Initially, the product prices rose slightly due to increased production costs as the volatility in crude oil values impacted the values. However, in the second month of Q3, the price trend shifted, and product prices plunged consistently in the region till the end of the quarter on the back of increased product inventory levels amid the weak demand sentiment from the cosmetic and daily care product manufacturers. At the same time decrease in upstream and feed costs reduced the production costs. At the end of the quarter, Polyethylene Glycol India's discussions settled at INR 152700/MT, after an average increase of 3% in the previous quarter's prices.
Europe
A stable price trend of Polyethylene Glycol was observed in the European region due to average to low demand sentiments from the consumer end on the back of rising inflation and high input values. Key feedstock producers like LyondellBasell, with a capacity of 3.56 MTPA, went under planned shutdown in August due to the unavailability of feedstock, which affected the domestic feedstock inventory levels. While the consistent plunge in the feed prices from the mid-quarter on the back of reduced offtakes by downstream, industries decreased the production values. Additionally, the high inflation depreciated the Euro values against the US Dollar, more significantly towards the end of the quarter, due to which product prices rose during the final month of Q3 amid moderate domestic inventory levels. At the end of Q3, Polyethylene Glycol discussions in Germany settled at USD 5100/MT.
For the Quarter Ending June 2022
North America
During the second quarter of 2022, Polyethylene Glycol has observed mixed sentiments in the North American region. The uncertainty in the crude oil prices led to the downstream commodities. The cost pressure from the upstream ethylene oxide fluctuated due to the war between Russia and Ukraine, further putting pressure on the petrochemical commodities. The sanctions on Russia have supported the inquiries for WTI Crude from several Northeast Asian regions, coupled with the higher freight charges and delayed deliveries had levied impact on the complete value chain. Demand from downstream cosmetics and personal care products supported to increase in the price of Polyethylene Glycol in the region.
Asia-Pacific
During the second quarter of 2022, the market sentiments for Polyethylene Glycol have witnessed a gradual upward trajectory throughout the quarter. The upstream Ethylene and naphtha prices fluctuated in the international market, resulting in the polyethylene glycol price rise in the regional market. Although the market sentiment remained uncertain, OPEC has been unable to offset the rapid output gap in crude oil. The cost pressure from the upstream was strengthened, affected the downstream industries rose the price of Polyethylene Glycol. The percentage of Polyethylene Glycol (200) was recorded at an inclination of 8% on an Ex-Delhi NCR basis during the quarter end.
Europe
In Europe, the Polyethylene Glycol market showed a growth trend; the cost pressure from the upstream Ethylene Oxide drove the downstream industries in the region. The crude oil and natural gas prices rose steadily the downstream derivative industries increased their offer in the region. Russia’s unnecessary aggression toward Ukraine continues to weigh on the economy in Europe and beyond. It led to materials shortages and increased energy and commodity prices. Increased inflationary pressures were also evident from the rising export prices of the euro area’s competitors. A limited supply of raw materials drives up prices for manufacturers in the region.
For the Quarter Ending March 2022
North America
In North America, the Polyethylene Glycol market was stable to weak in the first half of Q1 but soared significantly in the second half of Q1. The US market observes weak demand from downstream industries. Although, the cost support from the feedstock soared due to the Russia-Ukraine war that brought strict sanctions on the upstream supplies from Russia. However, higher freight charges and port congestion kept rising prices as an outcome of the conflict. Demand for durable products increases in the cosmetics and personal care sector, leading to increased inquiries about PEG. In response, the prices of Polyethylene Glycol gained 6% in the producer's quotations during the first quarter of 2022.
Asia Pacific
The Polyethylene Glycol market in the Asia Pacific region observed a mixed sentiment as the external factors impacted the market across the region. The higher values of the upstream energy cycles have levied its impact on the complete value chain, strengthening the producers' will across the region to raise the offered quotations for Polyethylene Glycol. Whereas in China, the market dynamics swindled persistently amidst the Lunar New year holidays and resurgence of COVID that showcased the contradicting trend in the Chinese domestic market. As a ripple effect, the prices in China gained by 4% during the mid-quarter, then observed a steep downtrend during the quarter-end.
Europe
In Europe, the Polyethylene Glycol market declined in the first half of Q1 but then increased due to market instability and the prevailing energy crisis throughout Europe. The worsening situation between the two countries caused a weak demand for PEG in the first quarter, and the supply disruption, combined with high freight charges, resulted in the price surge. In addition, the conflict in the eastern European region further induced inflation in commodity pricing. As a ripple effect, the offers for PEG have surged by 7% during the quarter ending in March 2022.
For the Quarter Ending December 2021
North America
During the fourth quarter of 2021, the Polyethylene Glycol market in the North American region witnessed a downward trajectory after the operational rates at the manufacturing facilities in the US restored post-hurricane season. However, despite the adequate cost support from the upstream and feedstock the offers for PEG in the domestic market plunge due to the healthy demand-supply margins. As a ripple effect, the offers for Polyethylene Glycol witnessed a constant plunge amidst the insignificant demand outlook from the downstream sector to kept the offers buoyed and the FOB Texas discussions for the PEG 17cST grade were settled at USD 4110 per tonne, during the quarter ending in December.
Asia Pacific
The PEG market in the Asia Pacific region witnessed a persistent uptrend in the fourth quarter of 2021. This uptrend in the market sentiments was attributed to the tight supply outlook despite the capacity expansion of the upstream in the domestic markets. This development is attributed to the slow down in the operational load at the manufacturing facilities in China due to the power rationing although the situation stabilized in the second half of the quarter. The demand soared from the construction ahead of the falling temperature in the Northeast Asian region. However, the bullish sentiments prevailed throughout the quarter and the Ex-Delhji discussion for PEG 1000 grade was settled at USD 2593 per tonne, during the quarter ending in December.
Europe
During the fourth quarter of 2021, the European Polyethylene Glycol market remained consolidated due to the ongoing energy crisis in the domestic market which proportionally weighed on the manufacturing capabilities due to the higher energy cost. Whereas, the demand remained healthy ahead of the falling temperature in the northwest European region from the downstream construction sector. However, the uncertainties induced by COVID and rebound in the international crude oil market induced adequate cost support, and the producers were forced to raise the offered quotations.
For the Quarter Ending September 2021
North America
In North America, Polyethylene Glycol (PEG) prices witnessed an upward trajectory during the third quarter of 2021. Tightened supply and robust demand were witnessed from the downstream industries including medical and pharmaceutical which led to the increment in the prices of PEG during the third quarter. Due to Ida hurricane that made landfall in the gulf coast of the USA, many Ethylene plants were shut down resulting in its scarcity which consequently fumed the prices of PEG in US.
Asia
In Asia, PEG market sentiments varied from country to country during the third quarter of 2021. In India, PEG market experienced mixed sentiments as in the beginning of the quarter, PEG prices shot up due to the robust demand after the resurgence in the industrial and commercial activities. Moreover, supply tightened due to clogging on the trade routes and constraint availability of shipping containers. However, in September PEG prices dropped owing to the ease in supplies. Besides, buyers were witnessed actively restocking which hampered trade activities as margins of downstream Styrene-Butadiene Rubber remained under pressure. Hence, Ex-Delhi NCR, Polyethylene Glycol prices rose from USD 2331.85/MT to 2398.85/MT from July to August and declined to USD 2256.40/MT in September.
Europe
In Europe, PEG prices attained tremendous gains during the third quarter of 2021 backed by the spike in the raw material values. Factors such as lower imports from other regions as an impact of Ida hurricane and congestion on several ports in China also contributed to the hike in the prices of PEG in this timeframe. Moreover, many manufacturers were compelled to curtail their production rates owing to the energy crisis across the Europe. However, the demand from the downstream remained firm throughout the quarter that kept the market sentiments high in Europe.
For the Quarter Ending June 2021
North America
Polyethylene Glycol (PEG) prices fluctuated in a narrow range throughout the quarter across North America region. The demand from the downstream ethoxylates derivatives and pharmaceuticals remained firm, while the overall supply activity was tight. The price of feedstock Ethylene Oxide also fluctuated in USA due to frequent change in availability within the country. However, the demand from the global market was also responsible for the overall buoyancy in the PEG prices. Improved production activities across the gulf of USA, increased the availability of upstream Ethylene in the country, which led to a decline in the prices of most of downstream products including PEG during the month of June. Therefore, under these scenarios, the price of PEG was assessed as USD 1470/MT during the last week of May in USA.
Asia
The Asian market witnessed an overall surge in prices of Polyethylene Glycol (PEG) during this quarter, backed by stable offtakes from the end user segments. PEG manufacturers based in China reported firm offtakes from the downstream units, bolstered by rapid economic recovery and rising demand from the international market. While in India, demand was comparatively low with the surge in pandemic in the country. Rising freight cost and global inflation impacted the price of Polyethylene Glycol in India, where traders were trying to protect their margins by raising their product prices. The price of PEG rebounded in India and reached USD 1719/MT and USD 2302/MT for PEG MW 200 and 1000 respectively in India during June 2021.
Europe
The European market also reported firm offtakes for PEG in its major countries, while curtailed supply activities and expensive cargoes led to an effective rise in the regional PEG pricing. During this quarter, demand for Polyethylene Glycol remined firm from the regional market, while due to limited inventory level prices kept on rising. Imported cargoes were also getting expensive in effect of soaring freight cost and lower container availability across major trade routes. In addition, low feedstock EO availability also impacted the downstream derivate PEG across the region during this quarter.
For the Quarter Ending March 2021
North America
The North American PEG supply was disrupted in Q1 2021 due to severely low supply of feedstock Ethylene Oxide across the region. It is estimated that more than 65% of the total Ethylene Oxide plants were not running due to extreme climate calamity across the US gulf during mid-February. In addition, major upstream Ethylene plants also remained idle in effect of this climate condition. As the demand for PEG was recorded lower than expectation, shortage of feedstock chemicals remained largely responsible for small rise in its prices. In US, price for PEG rose by 1.65% in first quarter 2021 and settled down at USD 1535/MT in March.
Asia
The Asian market witnessed tight supply for PEG throughout the quarter, though the demand remained stable to firm across the region. In China, after Lunar New Year, as the inventories were running low, it pressurised the overall PEG market of APAC by supporting its prices. On the other hand, Indian market faced difficulties to procure feedstock Ethylene Oxide material due to its skyrocketing prices. Import prices from European countries like Germany were hiked every month and Suez Canal crisis supported this rising trend across the region. Meanwhile PEG prices rose from USD 2172.48 (January 2021) to USD 2255.06 (March 2021) in India.
Europe
The European market witnessed gradual increment in demand for PEG across the region amid tight availability of feedstock chemicals. US gulf storm impacted the product availability across Europe, though the production was majorly impacted by the feedstock Ethylene Oxide. Ethylene Oxide cost fluctuated with handiness of feedstock Ethylene across the region, the demand for Ethylene remained conjointly high from different sectors like PVC which rendered shortage of material across region. Overall price of Ethylene Oxide witnessed an eternal rise, and it is anticipated that it'll come back all the way down to normal as North American country production is restoring itself week over week.
For the Quarter Ending December 2020
North America
Demand fundamentals for Polyethylene Glycol (PEG) remained firm in North America backed by the surge in consumption of various downstream industries following the gradual pick up of economies of several countries across the region. Meanwhile, operating rates at the upstream units in the gulf region were improved after resumption in several plant turnaround due to spate of hurricanes in October. Following the strong demand for glycol ethers used in disinfectants and cleaning chemicals, prices for PEG are likely to remain in an uptrend in the next quarter as well.
Asia
Polyethylene Glycol (PEG) supply across the Asia Pacific region remained tight in Q4, impacted by cost pressure on manufacturers due to consistent rise in upstream values. Steep climb in the prices of Ethylene Oxide due to its limited availability supported the surge in prices of derivative PEG in Asian countries in the quarter ending December. Besides, increase in market activities of downstream sectors like skin creams, surfactant, detergent, pharmaceutical formulations, polymer etc. gradually improved the demand for the product throughout Q4 2020.
Europe
Persistent surge in the feedstock supply followed by significant rise in container freight considerably pushed up the PEG pricing in European region during Q4. Traders remained concerned of the snug upstream supply due to the low container availability across several trade routes connecting Europe. A PEG trader revealed that prices of Ethylene Oxide & its Glycol derivatives significantly increased which led to an astonishing rise in its production costs. The demand for PEG considerably improved with rise in export demand from several Asia Pacific countries which led to a positive impact upon its prices.
