For the Quarter Ending June 2025
North America
• The Price Index for Propylene Glycol Pharma Grade stood at USD 1484/MT in April 2025, reflecting a sharp decline due to weak international demand and elevated inventories.
• Propylene Glycol spot price losses in April were intensified by sluggish export activity, leaving U.S. suppliers with excess stock and downward price pressure.
• In May 2025, the Price Index decreased slightly to USD 1468/MT, as market momentum slowed after early bulk purchases, despite steady domestic production.
• A muted Propylene Glycol demand outlook persisted in May, with food, pharmaceutical, and cosmetic industries maintaining conservative buying behavior.
• The Propylene Glycol Price Index for June 2025 rose marginally to USD 1473/MT, supported by modest recovery in trading sentiment and steady consumption.
• U.S. Propylene Glycol producers avoided inventory build-up in Q2, maintaining balanced supply to align with moderate demand levels.
• Weak export interest, particularly from India, limited any sharp upside in product price forecast during the quarter.
• The product price forecast for July 2025 suggests stability or minor decline, as seasonal slowdown continues and procurement urgency remains low.
• Adequate inventories and consistent production are likely to keep product spot price fluctuations limited in early Q3.
APAC
• The Price Index for Propylene Glycol in Singapore saw a steady upward trajectory throughout Q2, rising from USD 1073/MT in April to USD 1132/MT in May, and further to USD 1163/MT in June.
• April's price Propylene Glycol rise was driven by steady industrial demand and cautious restocking, with global uncertainties keeping buying momentum moderate. The market reflected balanced activity with slightly firmed offers.
• In May, the Propylene Glycol spot price gained strongly, spurred by inventory replenishment and improved procurement from end-users in food and industrial sectors. The demand uptick outpaced initial forecasts, contributing to an optimistic product demand outlook.
• As June progressed, stronger buying from domestic and regional players lifted prices further. Traders observed improved sentiment, supported by stable upstream supply and active market participation.
• The Propylene Glycol price forecast for July 2025 suggests a likely increase in the Price Index. Continued seasonal restocking, moderate inventory levels, and firm demand from food, pharmaceutical, and personal care sectors are expected to support this rise.
• No major disruptions were observed in raw material supply chains, keeping the propylene glycol production cost trend largely stable through Q2.
• Market players followed just-in-time procurement strategies in June, aligning purchases with near-term needs, thus maintaining transaction volumes despite rising costs.
• Sentiment turned cautiously bullish by the end of June as replacement costs and freight challenges began exerting mild upward pressure.
• Though Propylene Glycol demand improved, inventory pressures in certain segments eased only marginally, keeping market activity moderately paced.
• The Propylene Glycol spot price trajectory, combined with balanced fundamentals, signals continued support for prices in early Q3. However, minor oversupply risks still persist.
Europe
• In April 2025, the Price Index for Propylene Glycol Industrial Grade (FOB Rotterdam) increased by 0.33%, reaching USD 1522/MT, as downstream demand showed mild improvement, supporting a slightly firmer product spot price.
• Modest restocking by industrial buyers and steady production levels kept market sentiment neutral but firm, improving the near-term propylene glycol demand outlook.
• By May 2025, the Price Index surged by 3.02% to USD 1568/MT, driven by higher feedstock costs—especially Propylene Oxide—and strong export interest from neighboring EU countries.
• The rise in May also reflected margin recovery efforts by producers amid rising energy and labor costs, influencing the propylene glycol production cost trend.
• Increased foreign procurement in May encouraged sellers to maintain firm offers, aligning with a bullish product price forecast heading into summer.
• In June 2025, the Price Index remained unchanged at USD 1568/MT (0.00% change), indicating a stable supply–demand balance despite seasonal shifts in consumption.
• Downstream sectors like food, pharma, and construction maintained steady offtake, keeping the product spot price range-bound and supporting pricing stability.
• Cautious restocking behavior by buyers in June showed confidence in fundamentals but hesitance due to broader economic uncertainties.
• Overall, Q2 showed early momentum followed by stabilization, with sellers retaining some pricing control while watching inflationary cost pressures.
• For July 2025, the Price Index is likely to increase due to seasonal restocking, improved downstream consumption, and ongoing upward pressure from logistics and utility costs despite lingering oversupply concerns.
For the Quarter Ending March 2025
North America
In the first quarter of 2025, Propylene Glycol prices in the USA showed a steady upward trend. Prices began increasing in late January, reflecting renewed purchasing activity and a more favorable demand outlook.
This moderate rise continued throughout February and March as market participants adapted to stabilizing economic conditions and strong demand, particularly from the manufacturing and pharmaceutical sectors. While there were no significant spikes in demand, prices gradually increased, driven by consistent consumption patterns and a cautious approach to procurement. Buyers remained measured, adjusting their strategies in response to potential supply fluctuations and cost volatility.
Despite ongoing uncertainties in the broader economy, the market demonstrated a balance between supply and demand, with participants navigating the market with cautious optimism. As the quarter progressed, prices held steady, with no large fluctuations observed. Overall, the market was characterized by steady demand and moderate price increases, as participants continued to manage their purchasing decisions carefully, maintaining a stable market environment throughout Q1.
Asia Pacific
In Q1 2025, Propylene Glycol prices in Singapore saw a steady upward trend, driven by consistent demand from key sectors such as cosmetics, pharmaceuticals, and food and beverages. Throughout the quarter, tight supply conditions and cautious pricing strategies by suppliers supported gradual price increases. In January, the market saw a modest rise, driven by ongoing demand and concerns about supply imbalances. By February, prices continued to climb as market conditions remained stable, with demand holding firm and suppliers focusing on inventory management. In March, despite a slight easing in manufacturing activity, demand from end-user industries like pharmaceuticals and personal care helped maintain the upward momentum. Additionally, price adjustments from major suppliers added some pressure, though global trade uncertainties and geopolitical risks kept market participants cautious. Despite these challenges, steady demand across key industries ensured that prices continued to rise, with market players focused on managing supply levels to meet demand. Overall, Q1 2025 witnessed a relatively stable market with consistent price growth amidst ongoing demand stability.
Europe
In Q1 2025, Propylene Glycol prices in the Netherlands experienced a steady upward trajectory, fueled by a mix of optimistic market sentiment and strong international demand. Early in the quarter, favorable shifts in supply chain dynamics and improving industrial activity supported price increases, as market participants anticipated further growth. The rising cost of energy and inflationary pressures also contributed to higher production expenses, which were passed on to consumers, further driving prices up. Throughout February, demand remained stable across key sectors, including pharmaceuticals, cosmetics, and industrial applications, which sustained price momentum. Market participants focused on replenishing inventories, anticipating future demand, which added additional pressure on prices. In March, a more cautious approach by buyers, coupled with a price increase from a major supplier, led to a slight moderation in the rate of growth. However, steady demand from various industries ensured that prices remained firm. Overall, Q1 2025 saw a combination of cautious optimism and solid demand, allowing Propylene Glycol prices to rise steadily despite minor fluctuations in market activity.
For the Quarter Ending December 2024
North America
In Q4 2024, Propylene Glycol prices in the U.S. saw upward pressure, starting with a notable increase due to a combination of factors. Rising consumer confidence, supported by easing inflation and a Federal Reserve rate cut, bolstered demand. This optimism led to preemptive buying as market participants anticipated potential price increases. Concerns over a looming U.S. port worker strike and geopolitical tensions in the Red Sea further drove up demand, as retailers rushed to secure supplies in anticipation of disruptions.
As the quarter progressed, these supply chain issues deepened. Labor strikes at East and Gulf Coast ports, which began on October 1, severely disrupted shipments and caused significant delays. This led to bottlenecks in the market, intensifying competition among buyers for limited stock. Additionally, the uncertainty surrounding potential tariff increases under President-elect Donald Trump prompted retailers to expedite shipments, further adding strain to the already stressed supply chains.
Seasonal factors also played a role in pushing prices higher as winter approached. Increased demand for Propylene Glycol, particularly for antifreeze and other seasonal applications, compounded the pressure. The combination of heightened demand, supply chain disruptions, and anticipatory buying ahead of the festive season created a tight supply-demand dynamic that drove prices up throughout the quarter.
APAC
In Q4 2024, Propylene Glycol prices in China experienced upward pressure driven by multiple factors. At the start of the quarter, the prices surged due to a combination of increased domestic demand, particularly ahead of the Golden Week holiday, and production disruptions from holiday closures. Additionally, global supply chain challenges, including geopolitical tensions and shipping delays, further limited supply, pushing prices higher. Early November saw a slight price increase as China’s manufacturing sector expanded, fueled by government stimulus and favorable monetary policies. This growth spurred both domestic demand and export orders, driving up prices. The depreciation of the yuan also made exports more attractive, further boosting external demand. As winter approached, demand for Propylene Glycol increased due to its use in antifreeze and seasonal applications, further tightening supply and supporting higher prices. Additionally, rising raw material costs added to production expenses, prompting manufacturers to raise prices. This convergence of domestic and international factors contributed to an overall upward trend in Propylene Glycol prices throughout Q4 2024.
Europe
In Q4 2024, Propylene Glycol prices in Germany experienced a notable increase, spurred by a blend of economic recovery and logistical disruptions. Consumer sentiment improved, bolstered by rising income expectations, easing inflation, and interest rate cuts from the European Central Bank, which boosted consumer confidence and spending. This uptick in economic activity fueled higher demand for goods, including Propylene Glycol, as the peak shipping season approached. However, the market faced significant challenges from supply chain disruptions. Congestion at Hamburg's ports and extended shipping routes due to Red Sea disruptions placed additional strain on the supply chain, further elevating prices. Anticipating slower trade during the holiday season, suppliers strategically stocked up inventories, adding pressure to the market. Additionally, seasonal demand driven by increased need for antifreeze during the winter months contributed to higher consumption, driving prices up. Despite these upward trends, cautious buying behavior and market uncertainties helped moderate the price increases. In summary, the market in Q4 2024 experienced rising Propylene Glycol prices, fueled by a combination of improving economic conditions, seasonal demand, and ongoing logistical disruptions.
For the Quarter Ending September 2024
North America
In Q3 2024, the North American Propylene Glycol market witnessed a significant decline in prices, with the USA experiencing the most pronounced fluctuations. The market was heavily influenced by various factors, including weakening demand from end-user sectors, ample supply levels, and cautious consumer sentiment. These dynamics led to a downward pricing trend throughout the quarter. In response to these conditions, market participants adjusted by lowering their quotations to maintain competitiveness and support the market.
Notably, the region saw a substantial year-on-year price decrease of 27%, indicating a considerable shift in market conditions. The quarter-on-quarter decline of 11% further accentuated the negative pricing environment. Moreover, the comparison between the first and second halves of the quarter revealed a 6% decrease, highlighting the persistent downward trajectory in prices. The closing price of USD 1290/MT for PG Industrial Grade FOB Los Angeles in the USA underscored the prevailing bearish sentiment.
Overall, the pricing environment for Propylene Glycol in North America during Q3 2024 can be characterized as consistently negative, driven by subdued demand, abundant supply, and cautious market dynamics.
APAC
In Q3 2024, the APAC region witnessed a notable decline in Propylene Glycol prices, influenced by a confluence of factors. Weak market sentiments, exacerbated by subdued demand both domestically and internationally, played a significant role in driving prices downward. The ongoing global shipping crisis, coupled with economic uncertainties, further dampened demand, leading to an oversupply scenario in the market. Singapore, in particular, experienced the maximum price changes, reflecting the broader regional trend. Weakened consumer sentiment, driven by concerns over a potential economic slowdown and disruptions in global supply chains, contributed to a drop in demand for the Propylene glycol. The quarter saw a substantial decrease of -42% from the same period last year and a significant decline of -8% compared to the previous quarter in 2024. Notably, there was a -2% decrease in prices between the first and second half of the quarter, underscoring the continued downward trajectory. The latest quarter-ending price of USD 960/MT for Propylene Glycol Industrial Grade FOB Jurong in Singapore signifies the prevailing negative pricing environment, with prices reflecting a consistent decrease throughout the quarter.
Europe
In Q3 2024, the Europe region experienced a significant decline in Propylene Glycol prices, with the market witnessing a downward trend influenced by several key factors. The market saw subdued demand stemming from weakened economic conditions and logistical disruptions across the region. The deteriorating sentiment among businesses, coupled with increased pessimism about economic prospects, led to a decline in overall demand within the domestic market, exacerbating the downward pressure on prices. Additionally, rising shipping costs significantly disrupted market dynamics, affecting purchasing plans and causing financial strain for both buyers and suppliers. These logistical challenges further dampened demand for Propylene Glycol, intensifying the downward price trend. Netherlands, in particular, experienced the most substantial price changes in the region. The quarter recorded a significant -28% decrease compared to the same period last year, reflecting the ongoing downward trend. Furthermore, the quarter-on-quarter change of -13% highlighted the continued negative sentiment in the market. The comparison between the first and second half of the quarter, showing a -6% difference, reinforced the consistent decline in prices. As the quarter concluded, Propylene Glycol Industrial Grade FOB Rotterdam in Netherlands settled at USD 1390/MT, reflecting the prevailing decreasing pricing environment in the region.
FAQs
1. Why did Propylene Glycol prices decline in North America during April and May 2025?
In April 2025, Propylene Glycol prices in North America dropped significantly due to weak international demand and excess inventory levels. Exports remained sluggish, particularly to key markets like India, which intensified the oversupply problem. By May, prices fell slightly further as market momentum softened after early Q2 bulk buying. Despite stable domestic production, downstream sectors such as pharmaceuticals and cosmetics continued to adopt cautious procurement strategies, limiting any major recovery in spot prices.
2. What drove the consistent price increase in APAC during Q2 2025?
The APAC region, particularly Singapore, saw a steady rise in Propylene Glycol prices throughout Q2. This was largely fueled by growing demand from the food, personal care, and pharmaceutical sectors, along with active restocking efforts. By June, strong buying sentiment and reliable upstream supply chains supported a Price Index climb to USD 1163/MT. Although no major raw material shortages were reported, rising freight rates and replacement costs contributed to a cautiously bullish market outlook moving into Q3.
3. Why did prices stabilize in Europe in June after sharp gains in May 2025?
In Europe, the Price Index for Propylene Glycol surged in May 2025 due to higher feedstock costs, particularly for Propylene Oxide, and a rebound in export interest from neighboring EU nations. Producers also raised prices to offset increased energy and labor costs. However, by June, the market found equilibrium as restocking activity slowed and downstream consumption normalized. Buyers became more cautious amid macroeconomic uncertainties, leading to a flat Price Index at USD 1568/MT, with stability prevailing despite earlier bullish trends.
4. What is the Propylene Glycol price forecast for July 2025 across regions?
In North America, prices are expected to remain stable or experience a slight dip due to ongoing seasonal slowdowns and adequate inventory levels. In contrast, APAC may see a further uptick in prices, driven by firm downstream demand and moderate restocking. Europe is also likely to witness a mild increase, with summer restocking and rising logistics costs providing upward pressure. Across all regions, fundamentals appear balanced, though each market's forecast is shaped by local demand behavior and supply chain dynamics.
