For the Quarter Ending September 2024
North America
Throughout Q3 2024, the Diisopropyl Ether pricing in the North American region remained stable, reflecting a balanced market with moderate supply and subdued demand. Various factors contributed to this stability, including weak buying interest, lackluster demand from downstream industries, and slow trading activities. The market saw a steady trajectory due to the existing stock levels meeting domestic requirements and the overall cautious approach of enterprises towards stocking the material. Despite some improvements in the construction sector and other solvent industries, the demand for Diisopropyl Ether remained muted, leading to a consistent pricing environment.
In the USA, which experienced the most significant price changes, the quarter saw no substantial price fluctuations. The pricing trends in the USA mirrored the overall stable market conditions, with a correlation in price changes evident between the first and second half of the quarter. The percentage change from the previous quarter in 2024 stood at 0%, indicating price consistency.
The quarter-ending price for Diisopropyl Ether in the USA was recorded at USD 1995/MT, highlighting the prevailing stable pricing environment.
APAC
In Q3 2024, the APAC region witnessed a notable decline in Diisopropyl Ether prices, influenced by several key factors. Weak demand from downstream industries, including construction and solvents, contributed to the overall decrease in market prices. Additionally, the ongoing global port congestion and logistical challenges led to an oversupply of Diisopropyl Ether, further dampening prices. China, in particular, experienced the most significant price changes in the region. The market saw a sharp -18% decline from the previous quarter in 2024. The first half of the quarter recorded a -5% price difference compared to the second half. This downward trend in pricing reflects a negative sentiment, with prices ending the quarter at USD 1480/MT of Diisopropyl Ether - FOB Qingdao in China. Overall, the pricing environment for Diisopropyl Ether in Q3 2024 has been characterized by a persistent decline, driven by subdued demand and supply dynamics.
Europe
In Q3 2024, the European region experienced a significant decline in Diisopropyl Ether prices, shaped by several critical factors. The overall trend was marked by decreasing prices, largely influenced by escalating global logistics costs. Disruptions in the Red Sea region were a key contributor to these rising expenses, as ongoing conflicts led to severe port congestion, equipment shortages, and increased operational costs. These logistical challenges had a cascading effect on supply chains, causing delays and interruptions that heightened market volatility. As shipping routes became less reliable, the availability of Diisopropyl Ether was constrained, further complicating the pricing landscape. In addition to logistics issues, market sentiment was affected by concerns over supply stability, which contributed to fluctuating prices. Manufacturers were compelled to navigate these complexities while managing their production schedules, leading to an overall bearish outlook in the market. This combination of geopolitical factors and logistical disruptions ultimately drove down Diisopropyl Ether prices in Europe during this period, reflecting the intricate interdependencies within global supply chains.
For the Quarter Ending June 2024
North America
In Q2 2024, the North American Diisopropyl Ether (DIPE) market exhibited a stable pricing environment, largely shaped by consistent supply-demand dynamics and moderate economic conditions. Throughout this quarter, prices remained steady, influenced by several critical factors. The stabilization can be attributed to ample inventory levels and moderate production rates, which balanced the market despite fluctuations in upstream costs. The consistent availability of raw materials and steady procurement activities from downstream industries contributed further to this equilibrium. The market saw minimal disruptions, and the steadying effect of these conditions was reflective of a broader stabilization in the chemical sector.
The overall trend showed a stable sentiment, with prices exhibiting only slight fluctuations. Seasonality played a role, with moderate demand from downstream industries such as paints and coatings, which traditionally see consistent consumption patterns. The correlation in price changes was observed with upstream raw materials like Propylene, although their impact was mitigated by the steady supply levels.
However, when comparing Q2 2024 to the previous quarter, prices recorded only a -3% decrease, further emphasizing a stable pricing trajectory. Interestingly, the price comparison between the first and second halves of the quarter showed no variation, reinforcing the stable market conditions.
The latest quarter-ending price for DIPE in the USA stood at USD 1995/MT, underscoring the stable sentiment that characterized the market. Overall, the pricing environment for DIPE in North America during Q2 2024 was marked by stability, driven by balanced supply-demand dynamics and moderate economic influences, reflecting a neutral to slightly positive market outlook.
APAC
In Q2 2024, the pricing environment for Diisopropyl Ether (DIPE) in the APAC region experienced a pronounced bearish trend, significantly influenced by various market dynamics. Key factors contributing to the decrease in DIPE prices included oversupply in the market, sluggish demand from downstream industries, and volatile feedstock prices. With upstream feedstocks like Isopropyl Alcohol (IPA) and Propylene experiencing price fluctuations, the cost pressures trickled down to DIPE production. Additionally, logistical challenges and disruptions in the supply chain further exacerbated the downward price movement.
Focusing on China, the country witnessed the most substantial price changes within the region. The overall trend for DIPE in China during Q2 2024 was predominantly negative. Seasonality played a crucial role, as the anticipated summer demand did not materialize, leading to a surplus in supply and driving prices down. The price of DIPE fell by 26% compared to the same quarter last year, reflecting a significant long-term decline. From the previous quarter in 2024, prices decreased by 2%, indicating a persistent but more gradual downward trend. Furthermore, a comparative analysis between the first and second halves of the quarter revealed an 8% decline, underscoring the ongoing pricing pressure.
By the end of Q2 2024, the price of Diisopropyl Ether in China settled at USD 1620/MT, FOB Qingdao. This consistent price decline throughout the quarter points towards a decidedly negative pricing environment, with market sentiment reflecting oversupply and weak demand. The trajectory suggests that unless there is a substantial uptick in industrial demand or a reduction in production rates, the bearish trend may continue into subsequent quarters.
Europe
In the second quarter of 2024, the Diisopropyl Ether market in Europe faced a challenging environment, characterized by a consistent downward trend in prices. Several key factors contributed to this decline, notably the subdued demand from major end-user sectors such as construction and automotive. The construction industry experienced a downturn, largely due to a combination of economic and geopolitical uncertainties. High financing costs and unfavorable weather conditions further exacerbated the situation, leading to a reduction in demand for Diisopropyl Ether, an essential component in construction-related paints and coatings. As a result, the decreased activity in the construction sector significantly impacted the consumption of Diisopropyl Ether. Similarly, the automotive sector witnessed a decline, particularly in the sales of electric vehicles (EVs) and passenger cars. This slump was partly due to the withdrawal of government incentives for battery-powered electric vehicles, which resulted in a noticeable decrease in new registrations. The reduction in demand for Diisopropyl Ether, crucial for the production of automotive coatings and other related products, added to the challenges faced by the Diisopropyl Ether market. Overall, these factors collectively contributed to the persistent downward pressure on Diisopropyl Ether prices in Europe during the second quarter of 2024. The market continues to navigate these challenges amid a complex and evolving economic landscape.
For the Quarter Ending March 2024
North America
The Diisopropyl Ether (DIPE) pricing in the North America region during Q1 2024 has experienced a sluggish market trend. During this quarter, the market for DIPE in the region has witnessed weak purchasing activities along with slow market offtakes. The pricing trend in the USA, which has seen the maximum price changes, has been largely negative. Prices have experienced a downward trajectory, with a decrease of 9.1% in February 2024. This decline can be attributed to a reduction in producers' quotations and a decrease in consumption rates, leading to excess stocks in the market.
The availability of stocks has been ample throughout the quarter, with consistent supply from exporters. However, demand has been low, particularly from the household sector, which has seen a decline in expenditure. This has resulted in decreased orders from consumer product manufacturers, particularly in the stain remover and cleaning agent industries.
Looking at the overall trend, the DIPE pricing environment in the North America region has been bearish. Supply has been moderate, while demand has remained low. The market situation has been stable, with the availability of stocks being adequate. In conclusion, the pricing environment for DIPE in the North America region during Q1 2024 has been largely negative. Prices have experienced a downward trend, influenced by factors such as reduced quotations from producers and sluggish demand from buyers. The market has seen ample supply and stable conditions. The latest quarter-ending price for DIPE in the USA is USD 1985/MT.
APAC
In the first quarter of 2024, the pricing landscape for Diisopropyl Ether (DIPE) in the APAC region demonstrated an upward trajectory. The market prices of DIPE in China have seen a bullish trend, with prices increased by 5.85% from Feb 2024 to March 2024. This increase is attributed by the elevated demand from domestic buyers and the limited availability of supplies in the market. Additionally, the cost support for DIPE has been volatile due to fluctuations in feedstock propylene prices and moderation in upstream crude oil availability. Overall, the pricing trends in the APAC region have been influenced by factors such as demand from downstream industries, availability of feedstock supplies, and geopolitical uncertainties. However, the market has seen inclined demand from paint manufacturers and cleaning agent producers. In terms of seasonality, the pricing environment for DIPE has been affected by events such as the Lunar New Year holidays, which led to reduced trading activities and increased logistics costs. Additionally, the availability of supplies has been impacted by production cuts and supply chain disruptions. However, there has been a notable decline in prices compared to the previous quarter in 2024, recorded at 6.7%. Conclusively, in Q1 2024 the price for DIPE in China was USD 2080/MT - FOB Qingdao.
Europe
During the first quarter of 2024, Di isopropyl Ether (DIPE) prices in the European region experienced strong market trend, shaped by multiple influencing factors. Primarily, demand for DIPE remained robust, propelled by rise in purchasing appetite, which placed considerable pressure on the supply chain. This surge in demand contributed to a continuous rise in DIPE prices throughout the period. Essential commodities such as DIPE were strategically marked up during periods of peak demand, exacerbating the trend towards higher prices. Prices increased more markedly in the latter half, underscoring the sustained demand from the personal care industry and ongoing supply scarcity. In conclusion, the DIPE pricing environment within the European region, displayed a clear upward trend during the first quarter of 2024. Factors such as heightened demand, supply chain disruptions, and strategic seasonal pricing collectively drove this increase, highlighting the complexities and responsiveness of the market to various economic stimuli.
For the Quarter Ending December 2023
North America
The Di Isopropyl Ether price trend shifted in the North American market during the final quarter of the year. Initially, the cost support fell from upstream Acetone in the producing countries amid pessimistic market sentiments from downstream buyers and increased availability of supplies.
It reduced the production costs of DIPE amid the weak demand for solvent from end-user industries, such as paint and cleaning agent manufacturers, due to reduced procurement activities and lower consumption rates amid contraction in regional manufacturing sector activities, which negatively impacted the prices of Di Isopropyl Ether. Another significant factor that influenced the market was the availability of supplies.
While the production rates remained firm, the supply rates were moderate. In the mid-quarter, the price trend altered amid the decrease in the Panama Canal water levels due to the El Nina effect and dry weather conditions, resulted in a decline in Cargo rates and impacting the product deliveries in the regional market. Simultaneously, logistics companies issued restrictions on shipments through the Mississippi River due to the reduced water levels, which affected product shipping to the domestic market. The product supply rates remained moderate, and prices remained firm till the end of the quarter.
Asia
The Di Isopropyl Ether prices witnessed an overall bearish trend in the Asian region during the conclusive quarter of 2023. At the beginning of Q4, supplies were excessively available in the regional market due to declined exports to the importers. The decrease in demand for paint thinner and stain remover reduced the solvent consumption rates in the downstream industries, and inventory levels rose in the market. During the mid-quarter, feedstock availability improved amid reduced offtakes from Glycol industries and a reduction in the upstream Naphtha and Crude Oil prices after the resumed refinery operations in the North American region. On the contrary, transaction rates and offtakes remained low in the domestic market as orders declined due to the reduced procurement activities and consumption rates of solvent from regional paint manufacturers. Towards the end, prices decreased marginally amid depressed demand from the buyers and the increase in production rates of Isopropyl Alcohol due to increased demand for hand sanitizers in the region, which raised the DIPE production rates, and supplies remained firm in the market. On the other hand, the offtakes were sluggish from cleaning agent and stain remover product manufacturers.
Europe
Like the North American region, the Di Isopropyl Ether price trend shifted movement in the European region during the fourth quarter of 2023. At the beginning of the quarter, production rates were firm, and the cost support fell from upstream Acetone amid pessimistic demand from downstream buyers and increased availability of supplies. At the same time, the demand for the solvent from end-user industries, such as paint and cleaning agent manufacturers due to reduced procurement activities. The Eurozone Manufacturing Purchasing Manager's Index also dropped throughout the quarter, indicating a contraction in the manufacturing sector activities, and consumption rates remained feeble from downstream industries. In the mid-quarter, the stressed availability of Propylene inventories amid tight supplies from North American exporters amid maintenance activities at Propylene dehydrogenation units impacted the production rates. The demand-supply dynamics remained moderate in the region till the end of the quarter. At the end of the quarter, prices increased negligibly amid weak demand and affected supplies from exporters. The Houthi Rebels in Yemen attacked the vessels in the Red Sea, causing an increase in ship traffic and commercial vessels rerouted to the Cape of Good Hope, which increased the ship traffic, and the availability of supplies remained tight in the region.
