Propylene Glycol Pricing Report

Propylene Glycol Prices December 2023

During Q4 2023, the US propylene glycol (PG) prices showed a decreasing trend, because of the softened demand, the oversupply situation and the stocks correction. To a certain extent, these disinflationary factors, especially the falling price of oil and other energies, as well as the decrease in business and freight costs had a negative impact and the prices declined. On the other hand, this combination of the factors also added to the pressure on PG market valuations through declining Propylene oxide (PO) prices. The US experienced a severe price drop of 44% and 14%, respectively, for the year-on-year and quarterly rates. The Industrial Grade FOB Los Angeles landed at 1520 USD/MT.

The South Korean PG market in the fourth quarter of 2023 had a drop in its prices with the consumption at safer levels and the production at surplus. In December, the market registered a 7.69% decrease, and the current price of Propylene Glycol FOB Busan reflected this trend. Decline in the several sectors as well as the global supply chains has increased the inventory and, therefore has negatively affected the prices of the items. Over the course of the year, the prices went down by 52% and dropped by 23% from the previous quarter, this was at the price level of 1075 USD/MT.

In the Netherlands, the Propylene Glycol (PG) market encountered the instability of the price during the fourth quarter (Q4) of 2023. The prices first went up because of moderated inflation in October and improved consumer trust. Nevertheless, the downward trend was gradually getting weaker because of the insufficient demand and a massive supply. This quarter experienced a -23% year-over-year price decline as well as a -10% quarterly decrease. Amidst these modifications the prices stabilized during quarters with the final price at 1685 USD/MT (Industrial Grade FOB Rotterdam) for the last half.

Propylene Glycol Price Trend, Market Analysis, and News

IMARC’s newly published report, titled “Propylene Glycol Pricing Report 2024: Price Trend, Chart, Market Analysis, News, Demand, Historical and Forecast Data” offers an in-depth analysis of propylene glycol pricing, covering an analysis of global and regional market trends and the critical factors driving these price movements.

It encompasses an in-depth review of spot prices at major ports, a breakdown of prices including Ex Works, FOB, and CIF, alongside a region-wise dissection of price trends across North America, Europe, Asia Pacific, Latin America, the Middle East and Africa.

The report examines the elements influencing propylene glycol price fluctuations, such as changes in raw material costs, supply-demand dynamics, geopolitical factors, and industry-specific developments. Additionally, it integrates the latest market news, providing stakeholders with up-to-date information on market shifts, regulatory changes, and technological advancements, thereby offering a comprehensive overview that aids in strategic decision-making and forecasting.

Propylene Glycol Market Analysis

The global propylene glycol market size reached US$ 4.3 Million in 2023. By 2032, IMARC Group expects the market to reach US$ 6.1 Million, at a projected CAGR of 3.30% during 2023-2032. 

The expanding application in the field of food and dye materials processing, the increasing demand from automotive technology and solvents from different end users are driving the growth of the propylene glycol market worldwide. Moreover, propylene glycol is a major substance used by the transportation industry. It is a creamy transparent liquid without smell. It is the most hygroscopic compound and can be completely dissolved in alcohols, esters, water, amines and ketones. It has limited compatibility with complex components and is incompatible with aliphatic hydrocarbons. From being employed in public railway systems to helping with traffic management in smart cities, it serves a wide spectrum of uses in the transport industry. Propylene glycol is used to produce fire-resistant brakes and other fluids including those used for cooling in the transportation industry and can be used for production of many things as an initial source of raw materials of paints, raw components for de-icing of planes, and as a heat transfer fluid for high-temperature applications. Besides this, propylene glycol is used for the preparation of unsaturated polyester resins and has multiple functions in the automotive sector. The rise in the global production of automotive vehicles is propelling the market for propylene glycol. Based on the Organisation Internationale des Constructeurs d'Automobiles" (OICA) statistics, global automotive car production scaled to 85.02 million units in 2022, against 80.2 million from 2021, at a growth rate of 6%. The growth of the aviation industry is influencing the growth of propylene glycol market. The Boeing Commercial Outlook 2023-2042 forecasts that by 2042 the demand for new commercial jets will total 42,595, priced at USD 8 trillion. By 2042, the global fleet will be almost doubled reaching 48,600 jets increasing annually by 3.5%. Propylene Glycol is credited for its low toxicity index and biodegradability which provide benefits to the environment by reducing hazardous waste discharged into treatment plants. Eco-friendly formulations in antifreeze that use it as an ingredient are an example of their role in ensuring environmentally friendly industrial manufacturing practices. This is creating a positive outlook for the market across the globe. For instance, in March 2024, in the trail of the toxic cough syrup deaths, India’s drugs regulator instructed manufacturing companies to stop using propylene glycol imported from a Delhi-based firm. The purpose of this guideline is to continue the improvement of the quality and safety of pharmaceutical products. This is further supporting the market growth.

Propylene Glycol News 

The report covers the latest developments, updates, and trends impacting the global propylene glycol market, providing stakeholders with timely and relevant information. This segment covers a wide array of news items, including the inauguration of new production facilities, advancements in propylene glycol production technologies, strategic market expansions by key industry players, and significant mergers and acquisitions that shape the industry landscape.

Latest developments in the Propylene Glycol industry:

• In April 2024, a petrochemical subsidiary of The Chatterjee Group Haldia Petrochemicals Ltd (HPL) announced that it is planning a $10 billion-plus oil-to-chemicals project in southern India, which they hope to bring to financial close by end-2024. This enterprise comprises increasing profits by local production of specialty chemicals to meet the growing Indian market demand.
• In December 2023, LyondellBasell (LYB) announced that it has agreed to sell its Ethylene Oxide & Derivatives (EO&D) business along with the production facility located in Bayport, Texas to INEOS Oxide (INEOS).

Product Description

Propylene glycol is a synthetic organic compound of the chemical formula C3H8O2, and it is characterized by its viscous, colorless, and almost odorless properties. It is a diol, or a type of double alcohol, with a singular set of properties like low toxicity, high boiling point, and capability to dissolve in many substances and thus very versatile. Propylene glycol is hygroscopic and has a low freezing point and is an effective de-icing agent and is typically used in antifreeze. The compatibility with both water and many organic solvents makes it very useful for the pharmaceutical, food, cosmetic and chemical industries. The stability and non-reactivity of the compound also make it a good solvent and preservative, emphasizing its versatile nature in various areas.

Regional Coverage 

The report provides a detailed analysis of the propylene glycol market across different regions, each with unique pricing dynamics influenced by localized market conditions, supply chain intricacies, and geopolitical factors. This includes price trends and supply and demand trends for each region, along with spot prices by major ports. The report also provides coverage of ex-works, FOB, and CIF prices, as well as the key factors influencing the price trends. 

Global Propylene Glycol Price 

The report offers a holistic view of the global propylene glycol pricing trends, reflecting the worldwide interplay of supply-demand balances, international trade policies, and overarching economic factors that shape the market on a macro level. 

Europe Propylene Glycol Price

In Europe, the propylene glycol market was unstable during the period and first enjoyed the benefit of moderated inflation and increased consumer confidence that resulted in a short-lived price increase. Nevertheless, the changed direction because of declining demands from both domestic and international markets and the availability of an acceptable supply. This situation, which was defined by an ongoing downward trend, was affected by various factors, such as abundant market supply and economic conditions that started to influence consumer and industrial demand. As a result, these dynamics make the market a difficult one and this altogether leads to a decrease in the prices.

This analysis can be extended to include detailed propylene glycol price information for a comprehensive list of countries. 

North America Propylene Glycol Price 

The propylene glycol market in North America had a decreasing trend because of the weak demand and excess supply. Among the factors leading to this decline were the rise of inflation, high rates of interest, and geopolitical uncertainties. Propylene glycol was still very available based on a low demand within and outside the domestic economy. The market participants restocked, and the slowing down of the inflation, especially in the energy cost even added more to the downward pressures of the prices. Further, a fall in the price of another essential raw material – Propylene oxide, due to lower demand from downstream industries – was also instrumental in stipulating the bearish market sentiments.

Specific data on propylene glycol prices within the United States and Canada can also be provided. 

Middle East and Africa Propylene Glycol Price

The report explores the propylene glycol pricing trends in the Middle East and Africa, considering factors like regional industrial growth, the availability of natural resources, and geopolitical tensions that uniquely influence market prices. 

In addition to region-wise data, information on propylene glycol prices for countries can also be provided.

Asia Pacific Propylene Glycol Price 

The APAC propylene glycol market was characterized by several challenges, most notably, weak domestic and export trade leading to a price fall. The market was of a high supply, with increased production activity and export reduction that, coupled with global supply chain disruptions had resulted in inventory accumulations. All these factors, wrapped in the slowdown of demand in various industries, contributed to the continued decline of the market representing the widespread problems of the region.

This analysis can be further extended to include detailed propylene glycol prices for a comprehensive list of countries within the region. 

Latin America Propylene Glycol Price 

The analysis of propylene glycol prices in Latin America provides a detailed overview, reflecting the unique market dynamics in the region influenced by economic policies, industrial growth, and trade frameworks.

This comprehensive review can be extended to include specific countries within the region. 

Report Coverage

Key Benefits for Stakeholders:

• IMARC’s report presents a detailed analysis of propylene glycol pricing, covering global and regional trends, spot prices at key ports, and a breakdown of Ex Works, FOB, and CIF prices. 
• The study examines factors affecting propylene glycol price volatility, including raw material costs, supply-demand shifts, geopolitical impacts, and industry developments, offering insights for informed decision-making. 
• The competitive landscape review equips stakeholders with crucial insights into the latest market news, regulatory changes, and technological advancements, ensuring a well-rounded, strategic overview for forecasting and planning. 
• IMARC offers various subscription options, including monthly, quarterly, and biannual updates, allowing clients to stay informed with the latest market trends, ongoing developments, and comprehensive market insights, ensuring they remain at the forefront of the propylene glycol industry.