For the Quarter Ending March 2024
North America
In the North America region, the pricing environment for Polytetramethylene Ether Glycol (PTMEG) in Q1 2024 has been characterized by increasing prices. Several significant factors have influenced market prices during this quarter.
The heightened demand from downstream industries, particularly in the polyurethane sector, has played a key role in driving up prices. Additionally, higher import prices from exporting nations and geopolitical tensions, such as the drone attack on a major oil refinery in Russia, have contributed to the escalation in production costs. The overall trend in the market has been positive, with prices experiencing a 9% increase compared to the previous quarter in 2024. Furthermore, there has been a 2% price increase in the second half of the quarter compared to the first half. However, when compared to the same quarter last year, prices have decreased by 12%.
Focusing specifically on the USA, the market has seen the maximum price changes. Prices have steadily increased throughout the quarter, reflecting a positive pricing environment. The latest quarter-ending price for PTMEG in the USA stands at USD 2967/MT, Del Texas. This price reflects the overall upward trend observed in the market. Overall, the pricing environment for PTMEG in the North America region, particularly in the USA, has been characterized by increasing prices during Q1 2024.
APAC
The PTMEG market in Asia witnessed dynamic fluctuations throughout Q1 2024. Despite these variations, the overall trend showcased resilience and stability in the region's PTMEG prices.
In January, China's PTMEG market started the year with stable prices, supported by moderate demand from the downstream textile. However, February brought a shift as prices experienced a slightly downward trend. This downturn was primarily driven by weakened cost support and subdued procurement from downstream industries. Despite the challenges, March marked a return to stability in China's PTMEG market with consistent feedstock tetrahydrofuran. Steady demand from the textile industry, coupled with improved European market demand, helped offset the impact of sluggishness in the construction sector.
In conclusion, the PTMEG market in Asia navigated through a period of fluctuation in Q1 2024, with China playing a pivotal role in maintaining stability. Despite the ups and downs, the overall price remained steady throughout the quarter, reflecting the resilience of the market amidst changing conditions. The latest quarter-ending price for PTMEG in the China stands at USD 2449/MT, FOB Shanghai.
Europe
In the Europe region, the pricing environment for Polytetramethylene Ether Glycol (PTMEG) in Q1 2024 has been characterized by increasing prices. Several significant factors have influenced market prices during this quarter.
Increased demand from downstream industries, especially in the polyurethane sector, has significantly influenced price surges. Moreover, elevated import prices from exporting countries and geopolitical tensions, like the drone attack on a major oil refinery in Russia, have further fueled rising production costs. In January, prices surged by 2.5% in Germany, and continue followed the bullish trend in February and March, with PTMEG prices rising by 3.3% and 1.5% respectively, driven by increased production costs and moderate demand. However, compared to the same quarter last year, prices have declined.
Focusing specifically on the Germany, the market has seen the maximum price changes. Prices have steadily increased throughout the quarter, reflecting a positive pricing environment. The latest quarter-ending price for PTMEG in the Germany stands at USD 2703/MT, FD Hamburg. This price reflects the overall upward trend observed in the market. Overall, the pricing environment for PTMEG in the Europe region, particularly in the Germany, has been characterized by increasing prices during Q1 2024.
For the Quarter Ending December 2023
North America
In Q4FY23, PTMEG prices in the USA market experienced a decline throughout the final quarter due to weak support from the feedstock tetrahydrofuran and subdued downstream demand. The decline was attributed to factors such as declining consumer confidence and a reduction in discretionary spending, driven by inflation and increased interest rates, while feedstock prices remained relatively stable in the first month. Subsequently, PTMEG prices in the US market witnessed a further decline in November and December, influenced by weak production costs and the overall demand outlook from the previous month.
This drop was further impacted by falling crude oil and natural gas prices, which have been consistently decreasing, alleviating the financial strain on PTMEG. The reduced demand for PTMEG in the USA, particularly from downstream industries like textiles and construction, facing challenges, led to a month-on-month decrease in sales. The combination of higher prices and elevated mortgage rates became unaffordable for buyers, resulting in decreased spending, especially on textiles and clothing, contributing to high inventories for many retailers.
Consequently, the price of PTMEG has been consistently dropping in the US. Limited inquiries from various suppliers indicate an ongoing decline in the price of PTMEG in the USA. As of December, PTMEG prices in USA were assessed at USD 2815 per MT, DEL Texas.
Europe
In Q4FY23, PTMEG prices in the European market experienced a decline throughout the final quarter due to weak support from the feedstock tetrahydrofuran and subdued downstream demand. Despite market openings in western countries during the festive season, there was a downturn in exports from the Asian market in the downstream textile industry. Ready-made garments, a crucial component of the textile export portfolio, witnessed a significant decline of 15%. In the initial month, there was limited demand from end-use and spandex-based industries at a slower pace in the textile sector, leading to a slowdown due to reduced orders and average market shipments. This slowdown was primarily influenced by suppressed demand and the impact of inflation on European clothing consumption. Industries in Europe are currently grappling with increasing inflation and higher interest rates in the eurozone. The German chemicals industry, in particular, is facing challenges, and a swift recovery seems unlikely, with production witnessing an 8% year-on-year decline. An excess of inventories in the domestic market resulted in oversupply, exerting downward pressure on prices within the supply chain. The ongoing decrease in upstream crude oil and feedstock tetrahydrofuran, fueled by weakened procurement from other end-use industries, contributed to the reduced production cost of PTMEG in the domestic market. As of December, PTMEG prices in Germany were assessed at USD 2621/MT, FD Hamburg.
APAC
In Q4FY23, prices of Polytetramethylene Ether Glycol (PTMEG) in the APAC market exhibited a downward trajectory throughout the final quarter, driven by weak support from the feedstock tetrahydrofuran and subdued downstream demand. In the initial month, there was limited demand from end-use and spandex-based industries at a slower pace in the textile sector, which faced a slowdown due to reduced orders and average market shipments, primarily influenced by suppressed demand and the impact of inflation on European clothing consumption. There was sufficient stockpile availability contributed to easing the overall production cost of PTMEG in the South Korean market. The price remained suppressed due to reduced demand from importing nations and downstream construction industries, resulting in a month-on-month decrease in sales. According to the Construction Association of Korea (CAK) and the Construction & Economy Research Institute of Korea (CERIK), the Korean construction industry was anticipated to be valued at $166 billion (KRW 207 trillion) in 2023, reflecting a 6.7 percent decline from 2022. The main challenge faced by the industry was the rising cost of construction materials and services. Limited inquiries from various suppliers suggested a decline in the price of PTMEG in South Korea. As of December, PTMEG prices in South Korea were assessed at USD 2454/MT, FOB Busan.
For the Quarter Ending September 2023
North America
Throughout the third quarter of 2023, PTMEG prices in the North American market continued to incline due to slow to moderate demand and low import prices. Along the East Coast ports, a labor strike had a proportional impact on the operational activities of manufacturing units that use PTMEG, resulting in reduced inquiries. Despite efforts to address the backlogs, the subdued demand continued to dominate the PTMEG market dynamics. Additionally, the downstream spandex market saw a moderate number of inquiries as the interest rate and the continuous rise in crude oil and naphtha prices impacted the overall price range of PTMEG in the regional market. While the supply chain improved, certain shipments that traditionally used US West Coast ports had been redirected to alternative entry points within the country due to concerns about labor negotiations, causing some unease. The restrictions on ship draft limits while crossing the Panama Canal, which were enforced this summer due to low water levels caused by drought, did have the expected negative impact.
Asia Pacific
In the Asia-Pacific market, prices declined in the Q3 of 2023, as the prices of the raw material, tetrahydrofuran. Buyers, who had previously been adopting a cautious "wait-and-see" approach, have now shifted their behavior as the upcoming festive seasons have accelerated the production of PTMEG-based products. On the other hand, the sufficient availability of the product with the end-use manufacturing units impacted the overall price range of PTMEG. Initially, downstream textile businesses in the spandex industry were primarily using their existing raw material stocks, and although there was an uptick in new orders, it wasn't substantial, leading to a situation where demand for upstream products was adversely affected. With major Asian countries gearing up for festive seasons and the introduction of regulatory notifications related to the Asian Games, there has been an increased demand for PTMEG-related materials. Concerns about potential future shortages in raw material supply have led to worries about rising procurement costs, prompting some downstream businesses to focus on replenishing their inventories in upcoming quarters.
Europe
PTMEG prices in the European market declined throughout the third quarter owing to the reduced production cost and reduced demand outlook from end-use manufacturing units. Additionally, there was a significant decline in new export orders, mainly driven by reduced sales in China and across European markets. Companies were cautious about reducing their workforce, resulting in a slight decrease in factory employment. In terms of pricing, both input costs and factory gate prices declined. The prices of the raw material, tetrahydrofuran, and butanediol, remained at a low level, leading to a decrease in the final prices of PTMEG in the German market. Moreover, the economic conditions in the country remained uncertain as the nation moved towards a slower economic period. PTMEG prices in the European market declined throughout the third quarter of 2023 as the production cost and the demand outlook remained under pressure. Production costs decreased unexpectedly due to increased competitive pressures. Buyers refrained from placing large orders and managed their available stock cautiously. The average transit time for materials decreased, which lowered domestic input prices. Despite a continuous upward trend in global crude oil prices, sluggish demand was the dominant factor shaping the overall market dynamics.
For the Quarter Ending June 2023
North America
In the North American market, PTMEG costs displayed blended market elements in the Q2 of 2023 on the record of unstable demand and fluctuating natural substance costs in the regional market. PTMEG costs moved northwards in the main portion of the quarter as the US market revived and the interest strength settled. The business rate in the US market improved despite high expansion and the feeling of dread toward a looming downturn. PTMEG demand from the spandex market was low as the rising temperature restricted the buyers from placing higher orders. The general market elements of PTMEG in the US market were represented by a sharp decrease in popular assumption for the item from the spandex market, as well as lower feedstock costs (tetrahydrofuran and butanediol). The US federation kept the interest rate stable in the market to promote the industrial output rate amidst the retarding price dynamics of Maleic Anhydride in the US market. Besides, the dollar rate settled amid the undermining monetary weakness in the North American market. Conversely, the monetary circumstances in the regional market had deteriorated because of the furious expansion tensions and fears of a monetary emergency welcomed by the disappointments of Silicon Valley and Mark Bank towards the beginning of the quarter.
Asia Pacific
Slanting business sector elements of PTMEG was seen in the Asia Pacific market by virtue of slanted request and fluctuating feedstock (tetrahydrofuran) costs in the provincial market. The first half of the quarter exhibited the frail value elements of PTMEG. The cost of feedstock (tetrahydrofuran) in the Chinese market impacts the expense of creating PTMEG. In any case, because a production unit delivering butanediol was closed down for upkeep, stores were low, bringing about a shortage of provisions. The Chinese market showed a more sluggish utilitarian rate in the midst of the Labour Day celebration. Inventories were sufficient in any case. Their proficiency rate in the country was low, with a moderate revenue perspective for the thing from end-use delivering units. Besides, the PMI of China sneaked through the second quarter of 2023, and the improvement of the certifiable Gross domestic product (GDP) in China went to 6.3 percent diverged from a comparable quarter of the prior year. GDP suggests the total market worth of all work and items that are conveyed inside a country every year.
Europe
PTMEG costs fell in the European market in the second quarter of 2023, upheld by sluggish downstream interest strength. The buying supervisors' file (PMI) diminished as the monetary slump imperiled buyers and kept them from exhibiting any interest in buying the item. Week request strength was clear as purchasers focused on their necessities, bringing about a sluggish interest estimate. Notwithstanding a lessening in excesses in the local market, the new request situation was low in the European market. PTMEG's general market elements were obstructed by store network interruption when workers organization individuals challenged the public authority, harming the general market elements. Producers got fewer demands about the thing from end use (spandex) adventures in light of sufficient save accordingly controlling the general market components of tetrahydrofuran in the German market. More prominent expenses have troubled family spending on things like food, clothing, and furniture. Current orders are also more helpless, reflecting the impact of higher energy costs on associations.
For the Quarter Ending March 2023
North America
In the North American market, PTMEG prices showcased mixed market dynamics in the Q1 of 2023 on account of the volatile demand outlook and fluctuating raw material prices in the domestic market. PTMEG prices moved northwards in the first half of the quarter as the US market revived and the demand strength stabilized. The employment rate in the US market improved despite high inflation and the fear of an impending recession. PTMEG demand from the spandex market was low following the holiday season. The supply chain experienced issues in the mid-quarter, extending the time it required to get the goods to the domestic market. The general market dynamics of PTMEG in the US market were governed by a sharp reduction in demand expected for the product from the spandex market, as well as lower raw material prices (tetrahydrofuran and butanediol).
Asia Pacific
Mixed market dynamics of PTMEG were witnessed in the Asia Pacific market on account of slow demand and fluctuating feedstock (tetrahydrofuran) prices in the regional market. The first half of the quarter showcased the weak price dynamics of PTMEG. However, stockpiles were low since one of the feedstock (butanediol) production units ceased operations owing to maintenance work, resulting in a supply constraint. The price of feedstock (tetrahydrofuran) in the Chinese market influences the cost of generating PTMEG. However, because a production unit producing butanediol was shut down for maintenance, stockpiles were low, resulting in a scarcity of supplies.
Europe
PTMEG prices fell in the European market in the first quarter of 2023, supported by slow downstream demand strength. The purchasing managers' index (PMI) decreased as the economic downturn endangered purchasers and prevented them from demonstrating any interest in purchasing the product. Week demand strength was evident as consumers prioritized their necessities, resulting in a slow demand forecast. Despite a decrease in backlogs in the regional market, new order placement was low in the European market. PTMEG's overall market dynamics were impeded by supply chain disruption when trade union members protested against the government, hurting the overall market dynamics.
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.
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.
For the Quarter Ending December 2021
North America
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.
APAC
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.
Europe
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.
