The prices of Propylene Glycol are likely to see notable rise during December globally, driven by a multitude of factors.  The reasons responsible for this trend is increasing demand from end-user industries, such as cosmetics, automotive, and pharmaceuticals amid tight supply in the market. End-user sectors also reported increased procurement activities, as many sought to secure inventories ahead of anticipated price increases during peak winter demand.

The recent surge in factory activity in China played a pivotal role in driving up global Propylene Glycol prices. The robust expansion, fueled by a notable rise in new orders, including a revival in export demand after a four-month slump, led to increased production levels. As Chinese manufacturers ramped up output to meet both domestic and international market needs, optimism surged within the sector, prompting a price hike. The uptick in export orders, particularly from international markets, further amplified this demand, tightening global supply and fueling higher Propylene Glycol prices.

In the United States, Propylene Glycol prices are expected to experience an uptick, driven by both seasonal factors and robust demand from key end-use industries. As winter approached, the demand for Propylene Glycol surged, particularly in antifreeze and deicing applications, where it is a crucial component of automotive coolants and runway deicers. This seasonal increase in demand was further exacerbated by concerns over a potential labor strike in mid-January, which led market participants to expedite their orders to secure supplies before any disruption could occur. The anticipation of supply shortages during peak demand periods prompted buyers to purchase larger volumes, despite their cautious stance, which in turn placed additional pressure on supply chains and contributed to the upward movement in Propylene Glycol prices.

In Europe, the Propylene Glycol market is expected to experience a price surge, fueled by a combination of strong demand and ongoing supply constraints. Industries such as personal care, cosmetics, and food additives were key drivers of the heightened demand, further intensifying the pressure on an already strained supply chain. Reduced production rates at several facilities added to the supply challenges, limiting the availability of Propylene Glycol in the market. Additionally, inflationary pressures across the region led to higher production and operational costs, which were passed on to consumers, pushing Propylene Glycol prices even higher.

According to ChemAnalyst's price forecast, Propylene Glycol prices are expected to remain elevated in the coming months, driven by strong seasonal demand and tight market conditions. The winter season across the Northern Hemisphere is anticipated to sustain high demand for de-icing and antifreeze applications, particularly in North America and Europe. Additionally, the upcoming holiday season, including Christmas and New Year, is likely to boost demand in the food industry, further contributing to higher prices. In China, the approaching Lunar New Year is also expected to increase demand and put upward pressure on Propylene Glycol prices.