For the Quarter Ending December 2022
North America
In the last quarter of 2022, the market prices of PTMEG followed the declining trend on account of declining feedstock market prices in the major manufacturing countries. The domestic market suppliers faced fewer inquiries about the product from end-use businesses showcasing its impact on the final prices of PTMEG. The PCE price index had declined by 0.3% month on month and continued to follow the same throughout the fourth quarter. In the mid-quarter, the dollar rate declined as the effect of inflation eased towards the end of the quarter. The ease in demand caused by festive holidays and a slight incline in energy costs governed the final prices of PTMEG. The demand for the product from the spandex market was weak on the back of the sluggish industrial and demand outlook. Towards the quarter's end, price quotations for Del Texas were observed at USD 3743/MT.
Asia Pacific
The Q4 of 2022 witnessed a declining trend in the Asia Pacific market as the major PTMEG manufacturing country remained silent. The Chinese business scale was low as the operational rate decreased domestically. The demand for PTMEG from downstream industries was low amidst the declining staff number in the industries. Additionally, as feedstock prices in the country dropped, production costs decreased consequently. The level of inventories remained under pressure. Many small and medium-sized textile mills were unable to operate due to the existing difficulty in getting terminal textile orders. Additionally, the pandemic condition constrained logistics, making incoming and outgoing difficult for finished commodities and raw materials. As a ripple effect, the PTMEG prices settled at USD 3396/MT for FOB-Shanghai.
Europe
In the fourth quarter of 2022, the PTMEG prices moved downwards in the European market, backed by sluggish demand strength from the downstream sector. The purchasing manager's index (PMI) fell as the economic slowdown threatened the buyers and restricted them from showcasing any interest in buying the product. Weak demand was observed as the consumers had prioritized their needs, consequently showcasing a slow demand outlook. Although a drop in backlogs was witnessed in the regional market, new orders were low in the European market. Polytetramethylene Ether Glycol (PTMEG) prices for FOB Hamburg (Germany) settled at USD 3870/MT during the last quarter.
For the Quarter Ending September 2022
North America
PTMEG prices in the US market fell in the third quarter of 2022 owing to a muted demand outlook and ample product availability. According to market participants, demand for PTMEG decreased in the United States as the spandex and polyester markets remained soft during the third quarter. The domestic leather market also fell, dictating the PTMEG market trend. Furthermore, the product's supply from a major exporting country (China) is constrained by low vessel volumes, and the ports of the United States on both the Gulf Coast and East Coast were congested, extending the transit time of supply with PTMEG manufacturers. PTMEG prices in the United States were governed by lower product demand and declining feedstock prices in the domestic market. The US market also saw an increase in energy costs due to high fuel prices, which included demand from the industrial and commercial sectors. During September, price quotations for CFR Texas were observed at USD 3835/MT.
Asia Pacific
The PTMEG witnessed a declining trend in the Chinese market during the third quarter of 2022 due to sluggish product demand. According to market participants, natural disasters in China's southwest province and heavy rainfall warnings in China's northern region impacted PTMEG prices in China. Furthermore, in the Indian market, feedstock Tetrahydrofuran prices increased slightly, as did benzene prices. Due to market dullness, suppliers did not raise market prices, and rising competition has reduced the market prices of PTMEG. Furthermore, PTMEG domestic production activity has decreased, and the operational rate has remained low. As a result, end-use industries, including clothing, furnishings, and others, operated on a lower level. As a ripple effect, the PTMEG prices settled at USD 3500/MT for FOB-Shanghai.
Europe
In the third quarter of 2022, the PTMEG prices showcased a fluctuating price movement in the European market. According to market participants, PTMEG prices remained under pressure from a variety of sources in August 2022, including the Russia-Ukraine conflict and its numerous ramifications (from raw material supply to logistics to trade insecurity and the impact of sanctions), as well as the impact of COVID-19 cases in China on overall demand. Prices thus remained southbound in Q3 2022, with participants taking a wait-and-see approach, waiting for the price slide to stabilize before returning to the market. Polytetramethylene Ether Glycol (PTMEG) FOB Hamburg (Germany) prices settled at USD 3503/MT during the third quarter.
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.
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.
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.
