In the first half of 2012, prices around the world for propylene glycol ether (PGE) were lower in the wake of falling feedstock costs. In Europe, market weakness resulting from a general economic slowdown was an additional factor.
PGE prices generally follow upstream trends, and are significantly impacted by the prices of feedstocks propylene, propylene oxide (PO) and n-butanol (NBA).
In Asia, economic growth in China has continued to propel the PGE market. Prices closely tracked falling propylene and butanol prices in late 2011, and continued to fall in 2012 as feedstocks moved lower.
In the US, the market for glycol ethers is largely driven by demand from the downstream paint and solvents industry, which experienced a downturn during the recession as commercial and home construction business evaporated.
Late in the second half of 2012, decreasing prices for US propylene glycol ether were further propelled by rapidly descending values for feedstock propylene.
Updated to mid-August 2012