For the Quarter Ending March 2022
North America
In the first quarter, the Propylene Glycol market in the North American region remains bullish throughout the quarter. In the first half of the quarter, the feedstock Propylene shortages batter down the production rates in one of the most extensive facilities after the fire broke out in December last week. The cost support from the upstream energy values staggers on a higher trajectory as the OPEC+ alliance stagnant on the decision to slowly increase the crude oil production against the rapid growth in demand, followed by the commodity gyration due to the conflict in the eastern European region. Such development in the outlook supported producers' will to raise the offered quotations for Propylene Glycol, and the FOB West Coast discussions for PG Pharma Grade in March assessed at USD 3055 per tonne.
Asia Pacific
In the first quarter of 2022, the Propylene Glycol market in the Asia Pacific region witnessed a significant increment in the market dynamics as the cost support from the upstream and feedstock persistently soared. Such market sentiments were majorly favored by the hiked crude oil offers amidst the absence of Russian Crude Oil. Whereas the Chinese Lunar New Year holidays followed by the Winter Olympics-related restrictions on the production rates kept the market outlook suppressed in China, the arbitrage remains silent. In addition, the resurgence of COVID in China levies a profound impact on the market sentiments besides suppressing the margin, and the FOB Qingdao discussions for USP grade were settled at USD 2701 per tonne during the quarter ending March 2022.
Europe
The Propylene Glycol market in Europe observed mixed sentiments based on the grades of Propylene Glycol in the German domestic market. The decrement in the temperature impacted inquiries from the antifreeze sector, which further levied its impact on the offers for the industrial-grade, despite the soaring offers of Crude Oil and upstream in the European market. Whereas the special military operation carried out by Russia over Ukraine and the sturdy stance of the European nations against such a move had impacted the market dynamics tangentially besides adding the upstream energy value to historic highs. As a ripple effect, the commodity gyration brought several turmoils in the producer's quotations, with the FOB Hamburg discussions for March settling at USD 3136 per tonne.
For the Quarter Ending March 2022
North America
In the first quarter, the Propylene Glycol market in the North American region remains bullish throughout the quarter. In the first half of the quarter, the feedstock Propylene shortages batter down the production rates in one of the most extensive facilities after the fire broke out in last week of December. The cost support from the upstream energy values staggered on a higher trajectory as the OPEC+ alliance stagnant on the decision to slowly increase the crude oil production against the rapid growth in demand, followed by the commodity gyration due to the conflict in the eastern European region. Such development in the outlook supported producers' will to raise the offered quotations for Propylene Glycol, and the FOB West Coast discussions for PG Pharma Grade in March were assessed at USD 3055 per tonne.
Asia Pacific
In the first quarter of 2022, the Propylene Glycol market in the Asia Pacific region witnessed a significant increment in the market dynamics as the cost support from the upstream and feedstock persistently soared. Such market sentiments were majorly favored by the hiked crude oil offers amidst the absence of Russian Crude Oil. Whereas the Chinese Lunar New Year holidays followed by the Winter Olympics-related restrictions on the production rates kept the market outlook suppressed in China and the arbitrage remained silent. In addition, the resurgence of COVID in China levied a profound impact on the market sentiments besides suppressing the margin, and the FOB Qingdao discussions for USP grade were settled at USD 2701 per tonne during the quarter ending March 2022.
Europe
The Propylene Glycol market in Europe observed mixed sentiments based on the grades of Propylene Glycol in the German domestic market. The decrement in the temperature impacted inquiries from the antifreeze sector, which further levied its impact on the offers for the industrial-grade, despite the soaring offers of Crude Oil and upstream in the European market. Whereas the special military operation carried out by Russia over Ukraine and the sturdy stance of the European nations against such a move had impacted the market dynamics tangentially besides adding the upstream energy value to historic highs. As a ripple effect, the commodity gyration brought turmoils in the producer's quotations, with the FOB Hamburg discussions for March settling at USD 3136 per tonne.
For the Quarter Ending December 2021
North America
The Propylene Glycol market in North America projected soaring price trends during October due to strong propylene oxide and propylene feedstock supported by skyrocketing upstream crude oil prices which continued from the previous quarter. With force majeures in many US facilities owing to the damages inflicted by the Ida hurricane widened the supply gap in the country. However, refiling of the crude oil inventories by the coordinated release of strategic reserves and recovering hurricane-impacted plant operations enabled the manufacturers to witness some relief in November. Nevertheless, the market got surrounded by renewed tightness in propylene feedstock supply due to curtailed operations following a fire explosion in ExxonMobil’s Baytown facility, consequently leading the prices to rise again settling between USD 2895/MT and USD 3055/MT FOB West Coast. The demand for Propylene Glycol in the pharma sector remained sturdy throughout the fourth quarter of 2021.
Asia
Facing the brunt from surging raw material costs supported by their tightness and high freight charges the prices of Propylene Glycol in the Asian Market reached the year’s highest value during October. Price shocks in China also arose from the “Dual Control Policy” implemented by the Chinese government for energy rationing which forced the manufacturers to reduce the operating rates in their facilities. The average prices of Propylene Glycol tumbled in November despite the still robust pharma sector demand on receding supply chain woes which enabled the propylene oxide feedstock to reach their destination. The continuously dropping raw material prices drove the December discussions of Propylene Glycol in China and India to hover around USD 2824/MT FOB Qingdao and USD 3376/MT FFG Ex-Delhi NCR, respectively. The negative growth in the automotive industry owing to chip shortage slowed the propylene glycol applications in the antifreeze market to a certain extent.
Europe
The European Propylene Glycol market remained under a tight spot throughout the fourth quarter of 2021. The prices of Propylene Glycol rose incessantly due to the double whammy from surging feedstock costs and the catastrophic energy crisis which inflated the input costs. The demand in the pharmaceuticals sector showed an unprecedented rise during the second half of the quarter with quickly spreading Omicron variant in the region. The Propylene Glycol spot prices also remained high due to supply chain disruptions in the initial part of the quarter and Coronavirus-induced transport restrictions towards the end of the quarter. In Germany, the average FOB Hamburg prices were assessed at USD 2670/MT in December.
For the Quarter Ending September 2021
North America
The prices of Propylene Glycol remained bullish in the North American region during the third quarter of 2021. A raw material supply crunch and buoyant demand from the pharma industry pushed up the price curve of Propylene Glycol. Disruptions in production due to Hurricane Ida which made landfall on the U.S. Gulf Coast on Sunday, August 29 added to the supply tightness in the region. As per market sources, the consistent increase in the prices is strongly tied to acute shortage of feedstock Propylene Oxide (PO) and continued operational setbacks. Demand stood firm from the Unsaturated Polyester Resins (UPR) sector during the quarter. Dow chemicals had declared a force majeure at its PO facility in mid-August which further added to the manufacturer’s woes. The Propylene Glycol (PG) Industrial Grade price was assessed at $2520/mt in August, up by about 7% over the levels observed in July. Highly imbalanced demand-supply prompted several North American PG producers to positively revise offers for several grades of Propylene Glycol with effect from September.
Asia Pacific
The market outlook of Propylene Glycol in the Asia Pacific region remained positive in the third quarter of 2021 on the back of a consistent demand from the downstream sectors. The price of feedstock propylene oxide had risen sharply impacting the prices of propylene glycol in Q3 of 2021. In China, the domestic Propylene Glycol market witnessed a revived demand since the beginning of July. The shutdown of factories in Shaanxi and Shandong for maintenance led to a decrease in supply while demand from the pharmaceutical market remained firm leading to a spike in prices. In India, the Ex-Mumbai price was last assessed at USD 3378 per MT in September.
Europe
The prices of Propylene Glycol demonstrated an increase in Q3 of 2021 followed by increased demand from the end user industry in Europe. European propylene glycol spot prices continued their downtrend for H2 followed by an improved supply across the region. Demand remained stable from the regional market as the offtakes remained steady from the downstream pharmaceutical and personal care sector in Q3.
For the Quarter Ending June 2021
North America
During the second quarter of 2021, the supply conditions of the Propylene Glycol (PG) in the North American region improved, as a ripple effect of the improved operating efficiency at several Propane Dehydrogenation (PDH) units, refineries, and crackers in the US Gulf region. Although the regional industrial infrastructure recovered from the impact of winter storm Uri, several PG manufacturers still struggled to operate at normal efficiency. Dow Chemical surged the prices of all grades of Propylene Glycol (PG) by USD 221 per tonne effective from the June starting. Overall, in June the FOB Connecticut (USA) contractual price of Mono Propylene Glycol (MPG)-pharma grade was assessed at USD 2795 per tonne observing a decrement of USD 45 per tonne from the prices in March.
Asia Pacific
Impacted by lacklustre buying sentiments amidst the second COVID wave in India, the Propylene Glycol (PG) supply outlook remained severely curtailed in the Southeast Asia region due to persistent raw material shortage. Majority of the orders in Northeast Asia and China were placed from the pharmaceutical and personal care industry. Supplies in China were strong enough to cope with the enquiries from the downstream pharma sector. Some Chinese buyers were reluctant to procure the high-cost Propylene amidst rising inflation rate in China. Pricing trend in China showed mixed results as it plunged to January level in first half and then again started to strengthen in later half with FOB Tianjin Propylene Glycol (PG) pharma grade prices settling at USD 2930 per tonne in June.
Europe
Propylene Glycol (PG) supplies remained constrained in the second quarter of 2021, owing to the turnaround in major steam crackers in Northwest Europe which curtailed the availability of the key feedstock Propylene in the European region. However, some easiness was witnessed as the no of Propylene Glycol (PG) shipments from the USA improved over the previous quarter. As a repercussion, the prices remained on an uptrend amidst the supply demand imbalance. Demand outlook was firm from the regional market as the offtakes were constant from the downstream pharmaceutical and personal care sector.
For the Quarter Ending March 2021
North America
During the first quarter of 2021, Propylene Glycol supplies remained affected, carrying forward the previous disruptions. As in the first half of the Q1, a major plant was on a maintenance turnaround causing tightness in the feedstock accessibility, further the extreme freeze weather conditions throughout US gulf region resulted in production disruptions in the mid-quarter. Demand, however surged as the winter season hit the region, thereby improving the consumption from the antifreeze sector. Surged demand and constraint supplies hiked the prices of Propylene Glycol in the North American region. In March, Dow Chemicals increased the prices of Propylene Glycol by USD 22/Ton for both the grades.
Asia-Pacific (APAC)
Supplies of Propylene Glycol in the Asia Pacific region were tight, owning to limited availability of the feedstock, due to planned plant turnarounds at several production plants, followed by slump in imports from the Middle East. During mid-February, the production was further constrained as a result of supply side issues due to the Chinese New Year holidays. Demand remained spiked throughout the quarter, as the consumption from the downstream antifreeze and pharma sector surged. Inclined feedstock cost and low production spiked the prices of Propylene Glycol throughout the region. In India, the prices in March were recorded at USD 1399/ton on CFR basis.
Europe
The supplies in the European region remained constrained throughout the Q1 2021, due to the limited availability of feedstock, followed by the major portion diverted towards the polyols production. Furthermore, supplies remained pressured under 50% decline in imports from the US over the previous quarter and Middle East, where a major petrochemical plant declared turnaround in February. However, the demand spiked, as the consumption from the antifreeze sector increased amid due to the winter season.
For the Quarter Ending December 2020
Asia-Pacific (APAC)
The supply of Propylene Glycol remained short in Q4 2020 due to turnarounds at the upstream Propylene Oxide facilities which trimmed its accessibility, thereby hampering the production of both Mono-Propylene Glycol and Di-Propylene Glycol. Squeezed supply of the industrial grade Propylene Glycol from China, resulted in regional shortfall of the product. The quarterly demand from the anti-freeze sector remained well supported from the Aviation Industry as the region experienced chilly winters. In the Indian market, the Propylene Glycol prices witnessed slight decrement in the first half of Q4, then constant increment throughout the quarter maintained an average price USD 1275/MT and is estimated to rise in upcoming months.
Europe
The European Propylene Glycol market faced tightness in Q4 mainly because of reported shortage of the feedstock Propylene Oxide as its volumes were heard getting diverted towards the polyols production. Sudden spike in the product prices across the Asian markets and seasonal hurricanes in the US surged trade enquiries from the European region. Demand for Di-Propylene Glycol from the fragrance sector remained healthy and the pharmaceuticals sector witnessed an enormous spike for combating the spreading of the COVID-19 virus. Demand for Mono-Propylene Glycol from the anti-freeze sector surged during winters despite grappling to combat uncertainties due to the second lockdown imposed across Europe because of new COVID variant. This led to panic regarding securities of supply despite appreciable demand outlook.
North America
During the first half of Q4, Propylene Glycol demand tightened due to moderate weather conditions throughout the US and travel restrictions due to surging COVID-19 cases. Early in Q4, supply in the US Gulf region was impacted by the production issues reported at the manufacturing facilities. In October, LyondellBasell declared force majeure at its upstream Propylene Oxide facility in Pasadena (Texas) which significantly impacted the production of Propylene Glycol and other downstream products in the region. Some facilities which were damaged by ‘Hurricane Laura’ in late August were heard getting repaired by the mid of Q4, thereby soothing of product supply late in the quarter. By the end of Q4, major players observed considerable improvement in the demand from the antifreeze sector due to winter season. However, demand remained pressured compared to the previous year.
