Contrasting Tri Ethylene Glycol Price Trends Emerge in US and European Markets in April 2024

In the early April 2024, Tri ethylene glycol (TEG) prices surged in Europe but declined in the US. The volatile crude oil market and inventory levels influenced this trend globally. Supply dynamics and market preferences likely contributed to the divergent trends across regions during the month.

In the early April 2024, the TEG market in Europe exhibited a bullish trend, particularly in Germany, where TEG prices increased by approximately 1.5% in the first half of the month compared to the previous month. This price surge was primarily driven by heightened demand from the downstream Oil and Gas Industry. Despite this, Ethylene Oxide prices remained low due to sufficient inventory and uninterrupted production. Improved quarterly oil and gas production in Europe further boosted TEG demand as a dehydrating agent. Similarly, in March 2024, Germany saw a significant uptick in TEG prices, rising by over 11%. This surge was attributed to increased production costs amid fluctuating crude oil prices due to geopolitical tensions. Despite the cost increase, demand for TEG remained strong from the downstream oilfield sector for natural gas extraction and showed a slight increase in inquiries from the plasticizer industries, supporting the TEG market. Moreover, Brent crude oil prices in Germany rose by approximately 2.4% month-on-month due to volatility induced by OPEC+ production cuts and limited US stock availability globally. These crude oil price fluctuations had widespread effects on the petrochemical supply chain, impacting prices of intermediate products like TEG.

In contrast to the bullish trend observed in the European TEG market, the US market experienced a decline in the first half of April 2024. During this period, TEG prices in the US decreased by approximately 2%. Despite average demand from the downstream oil and gas and automobile sectors, this decline was influenced by high feedstock inventory and lower crude oil prices. Similarly, in March 2024, TEG prices in the US plummeted by over 10%, driven by increased supply and subdued demand from downstream sectors. This was a shift from the previous month's surge, attributed to tight supply resulting from plant closures. However, with manufacturing units operating at full capacity again, supply improved, coinciding with reduced consumption in the antifreeze sector due to improved weather conditions.

Conclusively analysts anticipate further same movement in the TEG markets of both Europe and the US in the upcoming weeks. The abundance of feedstock inventory decreased demand from downstream sectors, and advantageous freight charges have all been influential factors shaping these anticipated trends. These dynamics suggest ongoing shifts in market conditions, with potential implications for TEG pricing and supply dynamics in both regions.