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Updated to Q1 2017
Asian spot import prices for the industrial-grade propylene glycol (PGI) grade of monopropylene glycol (MPG) slipped in January amid low demand and ample supply availability. Import prices of MPG, especially that of pharmaceutical-grade propylene glycol (USP), inched up from around second-half February on producers’ hikes amid uptrending prices of upstream propylene.
Average PGI prices for bulk cargoes fell by $100/tonne to $1,025/tonne CFR (cost & freight) northeast (NE) Asia in the first half of January and then recovered to $1,075/tonne CFR NE Asia in late-February.
PGI prices were relatively stable and range-bound at close to $1,200/tonne CFR southeast (SE) Asia in the first quarter.
Average USP prices for drummed cargoes were flat for the most part of January before rising gradually to reach $1,355/tonne CFR NE Asia and $1,455/tonne CFR SE Asia in early March, with more gains being seen in northeast Asia.
USP prices have risen more than PGI prices, although producers have targeted similar increases for both grades of MPG as their margins were being squeezed by rising raw material prices. The PGI price increase was kept in check as buyers were resistant to sellers’ hikes amid stagnant demand and sufficient supply.
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ICIS price assessments are based on information gathered from a wide cross-section of the market, comprising consumers, producers, traders and distributors from more than 250 reporters world-wide. Confirmed deals, verified by both buyer and seller, provide the foundation of our price assessments.
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