Ethylene Glycol Prices Consolidated after a Weak Performance in Asia During December 2023
Ethylene glycol prices stabilized in Asia during December 2023 after a drop in the preceding months. The prices were consolidated with a rebound in production activity, causing stability in the supply amid low demand throughout the period. However, an analysis by the Procurement Resource reported a m-o-m hike in the prices of ethylene glycol of approximately 3.53% and 2.97% in India and China, respectively.
Previously, weak demand and low prices observed for ethylene and ethylene oxide (feedstocks) had a direct and negative impact on the prices of ethylene glycol. However, the stability observed in the demand for ethylene oxide from the downstream industries later in December helped in building a positive market sentiment, resulting in attaining stability in the prices of ethylene glycol, as well.
Increase in Production of Ethylene Glycol During November Amid Low Demand
Some of the major production units located across Asia, specifically India and China, recommenced their production activities in November amid low demand in the chemical market. Restarting the production units located in China boosted the supply.
Ethylene Oxide Received Weak Demand from the Downstream Industries During November 2023
Ethylene oxide witnessed low demand from the downstream industries throughout November 2023. Weak demand received from the downstream industries, specifically the polymers industry, affected the prices of ethylene oxide, resulting in a drop in the prices during November. Additionally, the reduction in the prices of ethylene, a vital feedstock used for ethylene oxide production, was also low during the period, which contributed to the negative market sentiment.
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Stability observed in Prices of Ethylene Glycol Amid Steady Demand for Ethylene Oxide in December 2023
The low demand obtained acquired from the downstream polymer industry for ethylene oxide remained similar in December. However, the month depicted a stable graph for the demand for ethylene oxide in the chemical market. This stability in the demand for ethylene oxide, a prominent feedstock for ethylene glycol, supported the prices of ethylene glycol, as well. Additionally, ethylene prices consolidated due to moderation in the demand, contributing towards the steady prices of ethylene glycol in Asia.
According to Procurement Resource, the prices of ethylene glycol remained stable throughout December 2023. The hike in production activities boosted the supply amid weak demand for ethylene glycol in the Asian market. It ultimately led to steadiness in the prices of ethylene glycol. The market is expected to depict a similar trend maintaining the stability in the prices of ethylene glycol in the forthcoming months, as well.
