For the Quarter Ending September 2024
North America
In the third quarter of 2024, the Glycol Ether prices experienced a bullish price movement in the North American region, and prices rose gradually throughout the period, driven by several factors influencing the market dynamics. Factors such as stable demand from key industries like paints and coatings, alongside low to moderate supply levels due to fluctuations in feedstock Ethylene availability. The market dynamics were further impacted by the ongoing concerns about a potential recession in the US, leading to reduced Ethylene supplies and higher production costs for Glycol Ether manufacturers.
In the middle of the third quarter, Glycol Ether production rates were hampered because of the stressed availability of feedstocks in the region. The offtakes were moderate, and market players raised their quotations, culminating in a 6% price difference between the first and second half of the quarter.
Towards the end of Q3, the impact of Hurricane Helene resulted in reduced manufacturing activities in the region and a reduction in domestic stockpiles amid affected supply chain activities. Despite a -5% decrease compared to the same quarter last year, the quarter-on-quarter increase of % signified a positive trend. The latest recorded price of USD 880/MT for Ethylene Glycol Monobutyl Ether FOB Houston in the USA exemplifies the increasing sentiment in the pricing environment.
APAC
In Q3 2024, the Glycol Ether market in the APAC region has been characterized by a fluctuating pricing environment. The quarter has witnessed significant influences from several factors such as increased feedstock Ethylene costs due to fluctuating crude oil prices, moderate demand from downstream industries, and improved manufacturing activities. The market's dynamics were further complicated by supply chain disruptions and geopolitical tensions affecting crude oil imports, leading to variable feedstock availability. During the mid-quarter, the looming concerns about a recession in the US affected the international crude oil market and refinery operation. It stressed the feedstock Ethylene supplies and Glycol Ether production rates. However, towards the end of the quarter, the pricing dynamics shifted, and Glycol Ether prices witnessed a decline due to improved inventory levels in the region. At the same time, the resumption of Crude Oil supply from Libya in September 2024 resulted in increased refinery run rates and feedstock Ethylene availability, which negatively impacted the production costs. The second half of the quarter saw a notable decrease of 1% in prices compared to the first half, signaling a continued negative trend. However, there is no price change from the previous quarter's average prices, indicating a lack of significant fluctuations and the market exhibited a sense of stability. The latest quarter-ending price for Ethylene Glycol Monobutyl Ether (GE) CFR Qingdao in China stood at USD 1540/MT.
Europe
In Q3 2024, the Glycol Ether market in the European region has been characterized by a fluctuating pricing environment. Several factors contributed to this downturn. Firstly, the market faced reduced demand from downstream industries, especially in the construction and paint sectors, leading to sluggish consumption of materials. This drop in demand exerted downward pressure on prices. Additionally, the availability of feedstock Ethylene was relatively stable, impacting the cost support for Glycol Ether production. Furthermore, the overall economic conditions in the region, including a slowdown in the manufacturing sector, influenced market dynamics and pricing. Towards the end of the quarter, Glycol Ether availability improved in the market due to the resumption of manufacturing activities after the regional summer holidays. The quarter saw a 15% decrease compared to the same quarter last year, indicating a notable shift in pricing. Moreover, the quarter-on-quarter recorded a 3% decline and highlighted a continuous downward trend. The comparison between the first and second halves of the quarter showed a 1% decrease, further emphasizing the declining prices. Ultimately, the quarter-ending price for Ethylene Glycol Monobutyl Ether (GE) FOB Hamburg in Germany settled at USD 1580/MT, reflecting the prevailing negative pricing environment.
For the Quarter Ending June 2024
North America
In Q2 2024, Glycol Ether prices in North America remained stable due to balanced supply and demand dynamics. Adequate inventory and moderate supply levels effectively met domestic needs, cushioning the impact of rising feedstock costs, particularly Ethylene Oxide. Improvements in the construction sector, notably in adhesive paints and coatings, did not drive-up Glycol Ether prices, as existing stocks and weak merchant demand kept prices in check.
In the USA, where price fluctuations were most notable, Ethylene Glycol Monobutyl Ether (FOB Houston) ended the quarter at USD 810/MT, unchanged from the first half of the quarter. This stability was reflected in a 5% decrease compared to the same quarter of last year and a 2% decline from the previous quarter in 2024, indicating modest downward pressure.
Overall, the pricing environment for Glycol Ether in North America has been stable, with consistent supply and moderate demand maintaining equilibrium. Despite positive indicators from the construction sector, the ample supply and weak demand prevented significant price increases, resulting in a predictably stable market in Q2 2024.
APAC
In Q2 2024, Glycol Ether prices in the APAC region declined notably due to macroeconomic and sector-specific factors. Lower upstream crude oil prices, influenced by OPEC+'s production decisions and increased inventories, reduced feedstock costs and impacted Glycol Ether production expenses. Moderate demand from industries such as cleaning agents and cosmetics, combined with cautious purchasing behavior, led to an oversupply and further depressed prices. Geopolitical tensions, particularly in the Middle East, added to market volatility and affected buyer and producer confidence. In South Korea, where price changes were most pronounced, the market sentiment remained bearish. A seasonal drop in demand and a stable supply from consistent manufacturing contributed to the price decline. Glycol Ether prices in South Korea fell 6% year-over-year and 4% from the previous quarter in 2024, indicating a persistent downward trend. Within the quarter, prices dropped by 1% from the first to the second half, reflecting ongoing market softness. By the end of the quarter, Ethylene Glycol Monobutyl Ether (GE) FOB-Busan prices were USD 1510/MT. This consistent downward trend highlights a negative pricing environment for Glycol Ether in South Korea throughout Q2 2024, driven by weakened demand, sufficient supply, and reduced upstream cost pressures.
Europe
In Q2 2024, Glycol Ether prices in Europe consistently declined due to several key factors. The primary driver was moderate demand amid ample supply. A significant drop in orders from international importers, especially from Asia, was caused by a downturn in the FMCG sector. Additionally, the European Central Bank’s decision to cut interest rates for the first time since 2019 indirectly reduced consumer spending and industrial investment, contributing to decreased demand for Glycol Ether. Rising inflation in the Euro Area, which hit 2.6% in May 2024, further weakened consumer purchasing power and market sentiment. In Germany, where the most notable price changes occurred, the trend was distinctly negative. Stable yet moderate demand and consistent supply levels pressured producers to lower prices to boost sales. The summer season did not bring the anticipated increase in demand for cleaning agents and personal care products. Prices fell sharply by 23% compared to the same quarter last year and by 13% from the previous quarter in 2024, reflecting ongoing economic challenges. Between the first and second halves of the quarter, prices decreased by 2%, indicating sustained bearish sentiment. By the end of the quarter, Ethylene Glycol Monobutyl Ether (GE) FOB Hamburg prices were USD 1570/MT, confirming the negative pricing environment in Q2 2024.
For the Quarter Ending March 2024
North America
In the first quarter of 2024, Glycol Ether prices demonstrated an upward trend, with an increase from the previous quarter observed in the North American market. At the beginning of the quarter, prices rose as the availability of stocks was moderate to low in the market, and consumption improved after the New Year holidays. Simultaneously, supplies were limited from exporters as high energy costs and limited availability of feedstock Ethylene supplies in the producing country impacted production rates, heightened by the risk of supply chain disruptions amid geopolitical tensions and the Red Sea crisis.
During the mid-quarter, prices surged due to strong demand for Glycol Ether in the international market, driven by increased demand in the Household & Personal Care sector. Meanwhile, production rates were hampered by the sluggish availability of feedstock Ethylene and Propylene supplies, compounded by limited access to upstream Crude Oil in the global market due to OPEC+ production cuts.
Towards the end of the first quarter of 2024, Global air cargo demand saw a consecutive rise, fueled by the growth of the e-commerce sector and disturbances in shipping routes, notably in the Red Sea region, causing fluctuations in air freight rates and supplies to the regional market. Simultaneously, demand was firm for Glycol Ether from cosmetics manufacturers, and exporters raised their quotations.
APAC
The Glycol Ether price trend showcased an upward trajectory in the Asian market during the first quarter of 2024, and prices witnessed an increment of 6% from the previous quarter. Initially, prices surged as the orders remained strong from cleaning agent manufacturers due to increased stocking practices and consumption in the household sector before the celebration of the Lunar New Year in the region. Midway through the quarter, the availability of stocks was inadequate in the market. The Household & Personal Care sector saw a surge in demand amid the Seollal and Lunar New Year festivals in South Korea and China. Simultaneously, the ongoing wedding season and upcoming festivals in significant consumer India kept the appetite high from the consumer end. Towards the quarter's end, regional buyers increased their orders due to steady demand from the household sector amid the observance of various festivals around the arrival of the spring season. Concurrently, product availability was moderately low due to weak production rates. At the same time, global air cargo demand experienced consecutive increases, driven by the expanding e-commerce sector and disruptions in shipping routes, particularly in the Red Sea region, leading to fluctuations in air freight rates and product supplies in the regional market. Consequently, Glycol Ether prices rose in the Asian market.
Europe
The Glycol Ether price trend showcased a bullish movement in the European market, and prices rose by almost 10% from the previous quarter. At the beginning of the quarter, the production rates were affected by high energy costs and weak availability of feedstock Ethylene supplies due to high risks of supply chain disruptions amid the geopolitical tensions and the Red Sea crisis. Simultaneously, orders were consistent from cleaning agent manufacturers due to increased stocking and consumption from the household sector during festivals around spring in the Asian market. During the mid-quarter, prices increased amid robust demand for Glycol Ether in the international market as the Household & Personal Care sector saw a surge in demand from Asian buyers. At the same time, the production rates were affected by the inconsistent availability of feedstock Ethylene and Propylene supplies amid the limited availability of upstream Crude Oil in the global market due to production cuts by OPEC+. Towards the end of the quarter, prices inclined again as regional manufacturing units grappled with disruptions to production schedules due to a shortage of skilled labor. It resulted in diminished output rates and escalated operational costs. Additionally, global air cargo demand experienced its third consecutive monthly increase in March, driven by the expanding e-commerce sector and disruptions in shipping routes, particularly in the Red Sea region, leading to fluctuations in air freight rates. Consequently, Glycol Ether prices inclined again in the EU market.
For the Quarter Ending December 2023
North America
The Glycol Ether price trend fluctuated in North America during the fourth quarter of 2023. Initially, the demand remained low from the domestic downstream industries as the operating rates were moderate in personal care product industries and reduced procurement activities from the buyers as winter approached the Northern Hemisphere.
However, during the mid-quarter, dry weather conditions because of the El Nina effect decreased the Panama Canal water levels and resulted in a decline in Cargo rates. At the same time, the decline in the USA's manufacturing sector's Purchasing Manager's Index indicated a contraction in manufacturing sector activities, leading to low demand for cleaning agents and floor polishes.
Furthermore, the upstream Ethylene availability improved amid a reduction in the upstream Naphtha and Crude Oil prices after the resumed refinery operations and increased refining capacity in the region, and negatively impacted the production costs of Glycol Ether. Towards the end of the quarter, supply rates improved as heavy rainfall in the region increased the water levels of the Panama Canal and shipping activities. On the contrary, the orders were sluggish from the downstream personal care product manufacturers due to depressed demand and reduced trading activities in the region, which decreased the Glycol Ether prices.
Asia
The Glycol Ether prices decreased in the APAC region in the second half of the quarter amid underwhelming demand sentiments from buyers. Initially, the price trend was stable amid moderate demand-supply dynamics. The plant shutdown at Yeochun NCC Co. Ltd Unit 3 in South Korea impacted the feedstock availability and stressed the production rates of the product. At the same time, demand for Glycol Ether remained sluggish from ink manufacturers. Furthermore, the procurement activities remained low from the end-user industries amid a declining trend for end products in the regional market. Meanwhile, the cost support for Glycol Ether from the upstream Ethylene declined during the mid-quarter due to reduced offtakes from Glycol industries, which improved the availability of Ethylene and lowered production costs of Glycol Ether. Additionally, the reduction in upstream Naphtha and Crude Oil prices further contributed to the decrease in production costs. Towards the end of the quarter, the inventory levels rose in the domestic market due to depressed demand from cleaning agents and personal care product manufacturers, which raised the market inventory levels.
Europe
Like the North American region, the Glycol Ether shifted in the European region in the final quarter of 2023. At the beginning of the quarter, prices rose as production rates were affected due to volatility in feedstock Ethylene Oxide prices. Sasol, in Marl, with a feedstock Ethylene Oxide production capacity of 215,000 MTPA, went under maintenance turnaround in Early September till mid-October 2023. It affected the production rates of the product. During the mid-quarter, orders fell noticeably from the cleaning agent and personal care product manufacturers amid reduced buying and procurement activities from end users. Simultaneously, the decrease in feedstock Ethylene offtakes from downstream Glycol industries led to a reduction in the cost support from Ethylene and negatively impacted the production costs of Glycol Ether. Meanwhile, the decline in the Eurozone manufacturing Purchasing Manager's Index throughout the period resulted in a decline in consumption rates from the end-user industries. Again, towards the end of the quarter, the market did not showcase any significant improvement in inquiries amid the ongoing economic slowdown in the region. At the same time, the feedstock Ethylene prices decreased during the month because of increased inventories amid sluggish offtakes from downstream cleaning agent manufacturers.
