For the Quarter Ending June 2022
North America
The PTMEG (Poly Tetramethylene Ether Glycol) market gained in the second quarter of 2022 with a few agreements' futures rose due to rising demand and slow supplies, and spot prices were consistent in the early week. Domestic industrial firms suffered from the absence of PTMEG as the burden of insufficient Polyester stockpiles increased. After escalating BDO costs for basic materials, the market reportedly suffered negative pricing sentiments. PTMEG (Polytetramethylene Ether Glycol) pricing increased and showed gains in June. Facilities for the downstream production of spandex were operating at full capacity, and many more units are expected to begin production in Q3. This suggests that PTMEG demand will be significant, but downstream purchasers have shown little enthusiasm for pricey PTMEG.
APAC
In Q2 2022, PTMEG costs increased dramatically in the Asian market. Downstream demand remained high as domestic spandex plants typically run at 70 to 80 percent capacity. While the demand for Polytetramethylene Ether Glycol (PTMEG) and the price of domestic spandex are both rising, demand from downstream processing firms is rising sharply. PTMEG produced domestically costs INR 594650/MT ex-Depot Mumbai in May. The non-spandex market is generally unstable. Recently, the market had a supply shortage, which considerably raised the bid price. Domestic manufacturers were under pressure as the weight of their inadequate Polyester inventory grew because of the absence of PTMEG. The feedstock BDO market has shown strong pricing sentiments, which pressurized the PTMEG manufacturers.
Europe
PTMEG prices increased and remained stable during Q2 2022 in the European market. The global market has seen a growth in demand for the downstream PBAT and THF industries. Due to logistical and supply chain limitations on the part of the producers, product prices have been rising steadily. Prices stayed rangebound during the quarter due to a lack of supply and high demand from the downstream Polyester industry. Geopolitical issues involving Russia and Ukraine complicated costs, inflation pressures, and concerns over trading behavior. The main influence on PTMEG prices in the domestic and international markets is upstream BDO pricing.
For the Quarter Ending March 2022
North America
PTMEG prices rose and remained stable throughout the first quarter of 2022. In the worldwide market, demand from downstream PBAT and THF sectors surged. The manufacturers' logistical and supply chain constraints were to blame for the constant increase in product pricing. Prices remained rangebound during the quarter due to a lack of supply and high demand from the downstream Polyester industry. Other obstacles, such as inflationary and cost pressures, as well as suspicions around trading activity, were hampered by the Russia-Ukraine geopolitical crises. In both the domestic and international markets, upstream BDO pricing had the greatest impact on PTMEG prices. Prices of PTMEG during March was assessed at USD 5600/MT CFR Los Angeles.
Asia Pacific
In the first quarter of 2022, the PTMEG market in Asia increased. Due to greater demand and sluggish supplies, MEG futures climbed, and spot prices were good in the first quarter. Domestic manufacturing producers felt the pain as the burden of insufficient Polyester stockpiles grew due to the shortage of PTMEG. The market was noted to be experiencing strong pricing emotions in the face of rising raw material BDO prices. In March, the quarterly average price for PTMEG increased to USD 4900 per metric tonne FOB-Shanghai. The polyester industry chain entered its customary off-season in the Chinese market, making demand impossible to meet. The amount of PTMEG produced in the region has decreased in the first quarter of 2022.
Europe
Domestic PTMEG manufacturers' pricing were squeezed in the first quarter of 2022 as the burden of insufficient Polyester inventories intensified due to a scarcity of PTMEG. In the face of growing raw material prices, the climate of terminal speculation and follow-up grew stronger. The whole domestic and international markets, according to reports, were underperforming. Growing demand from the polyester and textile industries has put pressure on European supply dynamics, generating an imbalance in the overall demand-supply outlook. Because the COVID spread reduced market movement, making arbitrage impossible, market participants wanted to maintain a wait-and-see approach in China. Prices of PTMEG during March was assessed at USD 6550/MT CFR Hamburg.
PTMEG market sentiment was constant in North America during Q4, while abundant supply and slow demand from the downstream Polyester industry-maintained prices rangebound throughout the quarter. Feedstock BDO prices have stabilized after experiencing high volatility in PTMEG prices rose in October, reaching USD 4895 per MT on a FOB basis. Demand for PTMEG again rose in the second half of the fourth quarter, causing prices to surge to USD 5065 per MT in December.
Despite having few contracts, the PTMEG market grew in Q4. Prices of downstream Mono Ethylene Glycol climbed due to increased demand and sluggish supplies, and spot prices rallied significantly. The price of the basic ingredient BDO remained high as well. Despite the lack of cost assistance, the PTMEG market in APAC has strong pricing sentiments. Polytetramethylene Ether Glycol FOB-Shanghai were quoted as USD 4653/MT.
PTMEG prices in the European remained strong during Q4, with domestic dealers reporting strong demand. The supplies were manufactured only to fulfil export demands. Domestic manufacturers felt the squeeze as the burden of inadequate Polyester stockpiles grew owing to a scarcity of PTMEG. The climate of terminal speculation and follow-up got stronger in the face of rising raw material prices. According to reports, the whole domestic and export markets were underperforming. Shipments were frequently undeliverable over the Christmas season due to several facility turnarounds scheduled for maintenance.
