PTMEG Price Decreases End the US Market's Period of Inactivity

Texas- After a long period, minor fluctuations in the prices of Polytetramethylene Ether Glycol (PTMEG) were observed in the US market on the back of a slow demand outlook from (spandex and textile) industries and weak feedstock Tetrahydrofuran prices in the domestic market. The US manufacturing production sheds slightly from the previous month as the demand outlook for the PTMEG from the domestic and international markets. Final prices of PTMEG in the US market were observed at USD 3880 per MT, DEL Texas, in the third month of 2023.

The textile industry in the US is expecting varying demand strength from the international market. Textile-apparel players are experiencing increased input cost inflation, which is weighing on their PTMEG operational rate and production cost. The overall market prices moved southwards with the declined US-Asia freight charges and weak production costs. Another factor that impacted the commodity prices was the continuous incline of 25 basic points in interest rate by the US Federations.

Several companies are still dealing with supply-chain disruptions caused by prolonged COVID-related factors, port congestion, and reduced airfreight capacity that occurred a few months back in the Asian market. Moreover, the recent facet that governed the prices of PTMEG is the economic uncertainty in two major banks (Signature bank and Silicon Valley Bank) of the US, which has certainly put the US chemical industries in a dilemma.

Furthermore, textile players continue to face rising Selling General and Administrative (SG&A) expenses. As a ripple effect, the buyers have restricted themselves from placing higher orders, and PTMEG prices declined in the domestic market. Marketing expenses have risen, as have investments in improving store and digital operations. As per ChemAnalyst, the PTMEG prices are anticipated to decline further in the domestic market on account of more competitive behavior and a slow demand outlook.