For the Quarter Ending December 2022
North America
Mono Propylene Glycol had erratic market sentiment in the North American region during the fourth quarter of 2022. Due to rising feedstock prices of propylene oxide, Mono Propylene Glycol prices began to soar at the beginning of the quarter and kept increasing through November. Almost all of the inventory among domestic merchants had been consumed in the meantime by the end-user pharmaceutical, food, and cosmetic sectors due to strong demand, which kept prices upward.
However, the pricing pattern flipped in the final month of Q4, and Mono Propylene Glycol prices plunged in the domestic US market. The reduction in upstream WTI Crude oil prices finally led to a decrease in the feedstock price of propylene oxide, which had a negative effect on production costs. Also the downstream market also fluctuated in a lower range at the same time.
Asia- Pacific
Prices for Mono Propylene Glycol in the Asia-Pacific region sharply dropped in the fourth quarter of 2022. Prices decreased month over month as a consequence of reducing manufacturing costs for Mono Propylene Glycol brought on by falling costs for the feedstocks propylene oxide. Demand and orders from the cosmetics and pharmaceutical industries fell due to lackluster market performance in terms of sales and industrial production from these industries. Additionally, the recurrence of Covid-19 cases and the recession in the Chinese economy resulted in lower-than-expected consumer expenditure across domestic and foreign markets. However, producers received less benefit from an overproduction of material, resulting in lower prices in China.
Europe
The fourth quarter of 2022 saw a similar pricing pattern for Mono Propylene Glycol in Europe as it did in North America. Due to an increase in feedstock costs and high demand from the end-user pharmaceutical and industrial sectors, Mono Propylene Glycol prices started to rise at the beginning of the quarter and persisted through November. Later, Mono Propylene Glycol significantly altered its pricing dynamics in December due to poor demand from manufacturers before the approaching Christmas Holiday. Decreased yard occupancies and fewer port backlogs also allowed supply chains to resume normal operation in December, assuring a consistent flow of goods to domestic and foreign markets. Domestic producers cut back on output as the year-long destocking season of previously amassed inventories got underway in December.
For the Quarter Ending September 2022
North America
At the start of Q3 2022, the Mono Propylene Glycol prices followed a downward trajectory in North America due to the declining costs of its primary feedstock- propylene oxide with weakened downstream demand from pharmaceutical and personal care industries. In terms of supply, there were ample inventories in the market, and suppliers met the overall demand of regional and overseas buyers, which affected the Mono Propylene Glycol market. Fragile trading activity in Canada and Mexico also resulted in bearish market sentiments regarding Mono Propylene Glycol prices. However, towards the end of this quarter, the price trends for Mono Propylene Glycol started tipping towards the higher end of the scale, with values assessed at USD 3233/MT.
Asia- Pacific
During the third quarter of 2022, the Mono Propylene Glycol market exhibited sluggish market sentiments across the Asia Pacific region. The feedstock Propylene oxide consistently fluctuated in the Asian market with weakened cost support towards Mono Propylene Glycol. The manufacturers of Mono Propylene Glycol had high inventory, so the market stock was abundant. Also, the production cost for the pharmaceutical grade continued to deteriorate throughout the third quarter, prompting producers to keep the prices lower. The demand for Mono Propylene Glycol in downstream pharmaceutical industries was relatively bleak in the regional market despite the prominent price gap between Mono Propylene Glycol and other alcohols. The sinking trading atmosphere due to reduced imports from overseas prompted decreased Mono Propylene glycol prices in India. The Mono Propylene Glycol prices in the Indian market staggered downwards and dropped by 3.5% till August. By the end of the quarter, the market started to improve, with prices stabilizing at INR 206000/MT Ex- Mumbai and INR 171800/MT CFR JNPT due to better demand and limited supply.
Europe
The price movement of Mono Propylene Glycol scaled down in the European market with the onset of Q3 2022, and the prices contracted on the back of continuous reduction in the feedstock Propylene Oxide prices, which reduced the production cost of the product. Also, the European demand decreased significantly post inflation because product offtakes remained less from the regional market by the end-user pharmaceutical producers, who were cautious before making any purchase. The companies reduced their profit margins to increase the trade of goods in the market, which further levied its impact on the offers for the pharma and industrial grade in the European market. Also, depreciated currency values further reflected the prices negatively. By the termination of Q3, Mono Propylene Glycol prices slightly raised due to a firmer propylene oxide market and more vital regional buying trends. As per the data, the Mono Propylene Glycol prices for pharma grade in Germany settled at USD 3236/MT FOB Hamburg.
