In December 2024, the global market for Tri Ethylene Glycol (TEG) saw a mixed trend in prices, driven by regional demand, supply factors, and market conditions. These elements played a crucial role in shaping the global TEG price landscape.

In the US, TEG prices experienced a notable decline, primarily due to a destocking phase at the year-end. This was further exacerbated by weak domestic consumption, especially in downstream industries such as antifreeze, coolant, and paints and coatings. Insights from the automotive sector revealed a 7.1% drop in vehicle sales in December 2024, both on a volume and Daily Selling Rate (DSR) basis, compared to December 2023.

This downturn in the automotive market led to subdued demand for TEG. Despite this, supply remained sufficient to meet the demand. However, logistical challenges, including rising container rates and concerns about potential port strikes on the East Coast, added pressure to the supply chain.

Despite these issues, supply for TEG in the US remained adequate, resulting in a modest 1.0% decline in prices for TEG during the month. Looking ahead, production disruptions are expected due to scheduled maintenance at EO and derivative plants between February and June 2025, which could tighten the supply of TEG and other derivatives, such as MEG and DEG.

In contrast, the European market, particularly Germany, saw a positive trend for TEG prices in December 2024. Prices rose by 1.2%, largely driven by increasing logistics costs, including higher freight charges. The expected port strike in the US and congestion in key shipping routes also influenced the price trend. Additionally, demand for TEG saw an uptick, especially in oilfield production and deicing activities. However, demand in the downstream antifreeze and coolant sectors remained limited, and automotive sales in the region continued to decline, impacting overall consumption levels of TEG.

Meanwhile, in the Asia-Pacific region, China experienced a bearish sentiment in the TEG market, characterized by declining prices. The decrease was largely attributed to low import prices from key markets, with market participants offering significant discounts to clear out inventories as the year ended.

Rising inventory levels, coupled with weak consumption in the region and the rising domestic production, further fueled this downward price trend. In December 2024, TEG prices in China saw a significant dip of 9.9%. The paint and coating industry, along with the antifreeze and coolant sectors, showed minimal demand, partly due to a slight decline in the contribution of New Energy Vehicles (NEVs) to overall passenger car sales in December 2024.