For the Quarter Ending December 2022
During the fourth quarter of 2022, Propylene Glycol showcased irregular market sentiment in the North American region. At the start of the quarter, Propylene Glycol prices rose slightly and continued until the end of November due to increasing feedstock Propylene oxide prices. Meanwhile, consistent demand from end-user pharmaceutical, food, and the cosmetic sector had absorbed almost every inventory available among domestic retailers and kept prices firm. However, in the last month of Q4, the price trend changed, and Propylene Glycol prices declined drastically in the US domestic market. The feedstock Propylene Oxide prices were eventually reduced due to the decline in upstream WTI Crude oil prices, negatively impacting production costs. Simultaneously, the downstream market wavered in a lower range. Thus, prices of Propylene Glycol will be evaluated at USD 2810/MT for industrial grade and USD 2930 /MT for pharma grade by the end of December 2022 in the USA.
In the fourth quarter of 2022, Propylene Glycol prices drastically decreased in the Asia- Pacific region. Prices got cheaper month by month due to the reduction in feedstock Propylene Oxide cost along with crude oil and natural gas values, which resulted in falling production cost of Propylene Glycol. However, due to the underwhelming market performance of the cosmetics and pharmaceutical sectors in terms of sales and industrial output, demand and orders from these sectors declined. Moreover, the slowdown in the Chinese economy amid the resurgence of Covid-19 cases triggered purchaser spending from local and international markets on the downward side. As a result, the overproduction of material became less beneficial to producers. Therefore, the evaluated price of Propylene Glycol prices in China was USD 1585/MT FOB-Qingdao and USD 1500 /MT Spot FOB-Qingdao by the end of the quarter.
Like North America, the European region also resembled the same pricing trend of Propylene Glycol during the fourth quarter of 2022. Entering the quarter, Propylene Glycol began to increase due to an increase in feedstock cost. The statistics revealed a rise of about 7.1 % for industrial grade and 5.6% for pharma grade by the end of November 2022, supported by high demand from the end-user pharmaceutical and industrial sector. Later, Propylene Glycol severely shifted its pricing dynamics toward the lower side in December as manufacturers faced weak demand ahead of the upcoming Christmas Holiday. Also, supply chains started to run normally in December due to decreased yard occupancies and fewer port congestions, ensuring a steady flow of products to the regional and international markets. As the year-long destocking season of previously accumulated inventory began in December, domestic manufacturers reduced production. The manufacturers were primarily concerned about selling off their stockpiles and clearing the shelves for new production. Thus, in December 2022, Propylene Glycol prices settled at USD 2860/MT for industrial grade and USD 3050/MT for pharma grade.
For the Quarter Ending September 2022
During the third quarter of 2022, a fluctuation in the pricing trend for Propylene Glycol was seen in North America. Propylene Glycol prices declined consistently throughout the first half of the quarter due to the reduction in feedstock Propylene Oxide prices brought on by weak upstream pricing. Simultaneously, increased inventory levels due to decreased product offtakes from the regional market negatively affected Propylene Glycol prices. However, in the final month of the quarter, the price trend shifted, and Propylene Glycol prices rose until the end of Q3 due to an increase in the feedstock prices which caused a spike in production costs. At the same time, the demand was moderate from end-user pharmaceutical and food additives industries. Thus, Propylene Glycol prices in the USA settled at USD 3085/MT for industrial grade and USD 3233/MT for pharma grade by the end of September 2022, after a decrement of 2.2% in the previous quarter’s discussions.
In the third quarter of 2022, the Asian market showcased a fluctuating price movement of Propylene Glycol, likewise the North American market. Initially, the prices fell drastically by 6.3% for USP grade in the H1 of Q3 2022 because of decreased feedstock Propylene oxide costs. Also, market participants maintained the weak pricing sentiment in the domestic market due to a cautious purchasing mentality from the downstream pharma and cosmetics industries. However, in the last month of the quarter, the Propylene Glycol price trend revived, and prices soared till the end of the quarter due to increased upstream price quotations by the exporters, which boosted the production costs. Also, the Propylene Glycol inventory levels were affected as the plant went under shutdown in August. At the end of Q3, China’s Propylene Glycol prices settled at USD 2090/MT FOB-Qingdao and USD 2035/MT Spot FOB-Qingdao.
A variation in the price trend of Propylene Glycol was observed in Europe during Q3 of 2022. In the H1 of the quarter, Propylene Glycol prices in Germany declined by 8.5% for industrial grade and 7.1% for pharma grade due to numerous factors, including lower feedstock costs caused by high domestic upstream supplies, sluggish demand from end-user pharmaceutical industries and ample product availability. Also, the elevated inflation rates, and worsening economic conditions, devalued the Euro compared to the US Dollar. Later, in the H2 of Q3, the price trend shifted, and Propylene Glycol prices increased until the end of the quarter because feedstock Propylene oxide costs surged and product demand from downstream producers improved. Thus, in September 2022, Propylene Glycol prices settled at USD 3003/MT for industrial grade and USD 3236/MT for pharma grade.
In North America, the price trend for Propylene Glycol followed an upward trajectory because of bullish market sentiments in the second quarter of 2022. The cost support from feedstocks such as Propylene and Propylene Oxide remained high, strengthening the domestic producers and raising the Propylene Glycol prices in the region. In terms of supply, there were limited inventories in the market, and suppliers could not meet soaring demand from downstream pharmaceutical and personal care industries in regional and overseas markets positively affected the Propylene Glycol market. Robust trade activity in countries like Canada and Mexico also impacted propylene glycol prices. This quarter, the prices of Propylene Glycol in the United States increased by 12.4% compared to the previous quarter. By the end of the quarter, the price got settled at USD 3325/MT with stagnant market dynamics.
During the second quarter of 2022, the Propylene Glycol market exhibited bearish market sentiments across the Asia Pacific region, opposite the Northern and American markets. The upstream feedstock Propylene prices consistently fluctuated in the Asian market, and the cost support weakened. In Asia, the supply of Propylene Glycol in downstream pharmaceutical industries was relatively abundant in the regional market. The sinking trading atmosphere due to reduced imports from overseas prompted decreased propylene glycol prices in India. The costs of Propylene Glycol in the Indian market consistently staggered downwards and dropped drastically by 12.6% this quarter. By the end of the quarter, the market started to get better slightly, with prices assessed at INR 212847/MT Ex- Mumbai due to improving demand and supply shortages.
During the second quarter of 2022, the Propylene Glycol market witnessed favorable sentiments in the European market due to surging input costs. Demand buoyancy from the downstream pharmaceutical and personal care sector emphasized the price value of Propylene Glycol and fueled its market growth. With the onset of Q2, the increment in the raw material Propylene and Propylene Oxide prices had impacted the market of Propylene Glycol, which further levied its impact on the offers for the pharma and industrial grade with soaring offers of crude oil in the European market. By the termination of Q2, Propylene Glycol prices slightly dropped as traders were reluctant to stock out the existing inventories to initiate new production. As per the data, the FOB Hamburg prices of Propylene Glycol for pharma grade in Germany settled at USD 3405/MT.