PTMEG prices continued their global decline in the second half of December 2024, primarily driven by weak demand from the downstream spandex sector and declining feedstock tetrahydrofuran (THF) costs. This downturn was further exacerbated by subdued market sentiment and cautious procurement strategies across key regions.

In China, PTMEG prices faced sustained pressure as the spandex industry struggled with excess inventory and muted demand. With production rates at moderate levels, manufacturers prioritized inventory management over new output. The sluggish demand was further exacerbated by limited procurement from fabric mills, constrained by tight liquidity and cautious purchasing strategies. Feedstock THF prices softened during the period, contributing to the downward trajectory of PTMEG prices. Seasonal factors, such as colder weather, provided some support for winter apparel production, but it was insufficient to counter the broader market challenges.

Elsewhere in Asia, similar trends were observed. South Korea's PTMEG market also grappled with oversupply and restrained purchasing behavior. While cold weather temporarily boosted spandex demand for winter apparel, weak export demand and heightened competition in the global market limited recovery prospects. Reduced operating rates and year-end destocking by manufacturers characterized the market, keeping prices subdued.

PTMEG prices in Europe and North America continued to face downward pressure due to weak demand from the downstream spandex industry and subdued market activity. In Europe, low Tetrahydrofuran (THF) costs, declining textile exports, and oversupply of used textiles compounded the challenges, while festive season slowdowns further limited transactions. Spandex consumption remained under strain amid global overcapacity and reduced end-use textile production, leading to operational cutbacks.

Similarly, in the USA, PTMEG prices struggled as high inventories and reduced production rates in manufacturing facilities reflected weak terminal demand. Although limited feedstock cost fluctuations provided marginal stability in North America, cautious procurement strategies by buyers across both regions underscored the broader difficulties faced by the petrochemical and textile sectors during this period.

The global PTMEG market faced significant pressure in December 2024, driven by an oversupply fueled by ongoing capacity expansions in the spandex industry. This imbalance between supply and demand further weakened PTMEG prices across regions. While seasonal demand for cold-resistant fabrics offered brief support in the first half of the month, cautious procurement strategies and high inventory levels overshadowed these gains. Spandex suppliers struggled to manage surging inventories and maintain stable prices, with larger orders seeing slight declines.

According to ChemAnalyst, market activity is expected to pick up due to a seasonal demand boost in winter, coupled with the resumption of global trade flows following the festive season in Europe and North America. Additionally, anticipation of holiday closures in the Chinese market could provide further support for a rebound in PTMEG prices globally.