Updated to mid-August 2009
Asian market review by Sheau Ling Ong, ICIS pricing
Monopropylene glycol (MPG) rose 6% from mid-May at $950-1,000/tonne CFR (cost and freight) NE Asia (northeast Asia) to $1,020-1,050/tonne CFR NE Asia in mid-August supported by firm feedstock propylene oxide (PO) and propylene cost.
A major jointly-owned PG plant in China was shut since the end of May due to poor margins. Consequently, PG supply became snug. However, market participants said languid demand in the downstream unsaturated polyester resins (UPR) market from May to July due to the lull season countered the snug supply. Hence, PG prices were largely stable to July. Gain in PG prices came later in August due to more buying interests by UPR producers and higher upstream costs.
European market review by Alexander Nimmo, ICIS pricing
From May to August, MPG industrial grade (MPGI) spot prices in Europe were gradually recovering ground lost during the first quarter. From a low of around €800/tonne FD (free delivered) NWE (northwest Europe) in May, MPG prices gained almost €100/tonne by August as producers sought to widen narrow margins.
Demand remained relatively good, with the summer holiday period having a noticeable effect on shifted volumes. The de-icer market was understandably slow but there was some pre-buying ahead of predicted price increases in September.
Furthermore, unplanned shutdowns in the feedstock sectors led to problems with propylene supplies and consequently prices. Manufacturers were unable to pass on increases to their customers at the rate they wished, putting some uncertainty as to the level of increase planned for September. In general, however, sentiment is positive on prices continuing their current upward trend.
US market review by Gene Lockard, ICIS pricing
MPG prices strengthened in the US late in Q2 and early in Q3, with offers for USP-grade (PGUSP) material running up to 92 cents/lb ($705/tonne) for small-volume buyers. That was up from 87 cents/lb in mid-May, and came amid a run-up in feedstock propylene values and an up-tick in demand in Q3.
Prices of MPGI were said to be about 6-8 cents/lb lower than USP-grade material.
A change to actual transaction prices was planned for mid-August, as well as the addition of a monthly PGI number. The changes will result in monthly PGI prices to most buyers of about 55-65 cents/lb, with prices for USP-grade material in the low- 60s to the low-70s cents/lb.
While feedstock propylene price increases were the biggest factor in the run-up in MPG prices during the reporting period, rising demand from increased antifreeze and de-icer sales could prompt producers to announce additional September price increases, market sources said.
The Latest
Propylene glycol
Price Reports
Propylene glycol
price reports from ICIS pricing give you immediate access to the latest price movements
and critical market commentary.
Register for your FREE trial today.
Propylene glycol
Uses and Outlook
The largest outlet for propylene glycol (PG) is unsaturated polyester resins (UPRs) which are consumed primarily in the construction, marine and transportation industries. Nearly three-quarters of UPR is reinforced with fibre glass or mineral fillers to form fibre glass reinforced plastics (FRPs), which are tough, lightweight composites.
More about Propylene glycol Uses and Outlook
Propylene glycol
Process Technologies
Commercial production of propylene glycol is by hydration of propylene oxide. Di- and tripropylene glycols, as well as small quantities of higher glycols, are also produced in the reaction.
More about Propylene glycol Process Technologies
Search for
Propylene glycol
Suppliers
If you are sourcing
Propylene glycol
products and services, use ICIS search for fast and accurate results. ICIS search
is the search engine dedicated to the chemical industry – we show you only relevant
results -
search now.