Polyethylene Glycol Prices Trend and Forecast
North America
Polyethylene Glycol prices declined during the final quarter of 2022. Initially, prices decreased marginally amid high inflation and moderate product supplies. At the same time, a significant decrease in the feedstock Ethylene Oxide prices after USA’s EPA identified risks from commercial sterilization facilities using Ethylene oxide. It negatively impacted the production costs of PEG. However, during the mid-quarter, PEG prices-maintained stability due to a rise in production costs amid high feedstock Ethylene demand and an increase in offtakes from the Pharma sector. Then in the final month of Q4, PEG prices declined again because of weak demand and consumption rates and moderate availability of supplies in the market.
Asia
In Asia, Polyethylene Glycol prices decreased throughout quarter IV of 2022. For an initial couple of weeks, prices were firm and rose marginally due to limited feedstock supplies. After that prices started to decrease and fell till the end of the quarter. Offtakes declined from the Pharma sector due to its excessive use in cough syrups. In the mid-quarter, PEG prices dropped amid improved feedstock availability after the restart of feedstock Ethylene plants like Idemitsu Kosan, with a capacity of 6,90,000/MT, production improved, and the cost of PEG decreased. Towards the end of the quarter, prices plunged again in Asia amid destocking practices by producers and a decline in global freight charges.
Europe
Polyethylene Glycol prices decreased during quarter IV. During the first month of Q4, product prices reduced amid the decline in end-user consumption and firm production rates due to the surplus availability of feedstock Ethylene supplies and the consequent reduction in production costs of PEG. During the mid-quarter, prices decreased again due to weak offtakes by downstream Pharma industries, while production rates were hampered due to the production cut of feedstock and an increase in the input prices. Towards the end of the quarter, the PEG price trend-maintained stability on the back of moderate offtakes and a decrease in the feedstock and production costs amid a reduction in the input costs.
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