As Q4 Comes to a Finale, European PTMEG Prices may Continue to Shrink

Germany- The prices of Polytetramethylene Ether Glycol (PTMEG) have been governed by the declining feedstock prices and lower demand for the product in the European market. PTMEG production requires the polymerization of tetrahydrofuran, and fluctuations in the feed elements have impacted the price dynamics in the regional market. The product's supply chain initiates with benzene as it is the primary upstream component for PTMEG production. Crude oil prices in the European market witnessed a decline; hence, the impact of this factor was visibly seen in the market sentiments of PTMEG. Towards the end of the fourth quarter of 2022, the prices of PTMEG are anticipated to reach USD 3060 per MT, FD Hamburg (Germany).

The demand scale for PTMEG also remained on the lower edge despite the inflation rate's slight decline in European countries. The industrial operational rate in the major European countries such as Germany, Italy, and France was impacted by the increasing inflation and energy prices in the final quarter of 2022. China is one of the major producers of PTMEG in the global market. The supplying country's market dynamics have been on push and pull behavior, as showcased by a major manufacturer in China. With the falling demand, European factories had a perplexing November, and the condition is not expected to resolve in the coming months.

Despite the upcoming festive season in the regional market, buyers showcased deliberate sentiments to the PTMEG manufacturers and suppliers. North European countries may witness heavy rainfall hampering the transit time. Aside from low demand for product, other factors influencing final European prices include Europe's declining employment rate and stagnant production rate. As per ChemAnalyst, prices of PTMEG are anticipated to follow the slow trace in the European market on the back of sluggish demand and lower production rates in the domestic market.