Monopropylene glycol

Players remain sceptical about how monopropylene glycol (MPG) demand will pan out from the de-icers and antifreeze sectors as 2012 winds down. Demand has been sluggish this year, and some market players said that the weather has been warmer than the same period of 2011.

Demand in the main downstream unsaturated polyester resin (UPR) sector moving into 2013 is projected to remain subdued amid soft economic conditions. Meanwhile, US MPG contract values have closely followed feedstock propylene values this year.

In Europe, profitability for monopropylene glycol industrial grade (MPGI) remains low, and sellers are keen to keep prices at least steady, despite some recent relief in upstream propylene costs. They said that MPGI margins have been eroded this year, as they have not managed to recoup propylene-related feedstock increases over recent months, because of subdued downstream demand and good supply.

Both buyers and sellers are closely monitoring the market to see if there is a seasonal boost to demand from the downstream de-icer and antifreeze sectors over the winter months, which could push prices up and affect the market balance, although the latter remains to be seen. While there had been some signs of seasonal business starting, most players said that there had been no significant pick-up so far this autumn/winter and that existing stocks still needed to be worked through first.

Updated to mid-November 2012