Global propylene glycol ether (PGE) prices generally follow upstream trends, and are significantly impacted by the prices of feedstocks propylene, propylene oxide (PO) and n-butanol (NBA).
In the second half of 2011, prices around the world were lower in the wake of falling feedstock costs. In Europe, market weakness resulting from a general economic slowdown in much of the euro zone was an additional factor.
In the first quarter of 2012, global prices trended higher as prices for feedstock propylene began to rebound in January from multi-year lows.
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 were rising in 2012 as feedstocks made a run higher.
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.