Carbitol Price Trend and Forecast

Carbitol Regional Price Overview

Get the latest insights on price movement and trend analysis of Carbitol in different regions across the world (Asia, Europe, North America, Latin America, and the Middle East & Africa).

Carbitol Price Trend for the Second Half of 2023

Asia

The prices of carbitol were dependent on the performance of the pharmaceutical industries in Asian countries. During the initial phase of H2 of 2023, the demand for carbitol was firm in the domestic market, and the supply was low due to the limited availability of raw materials in the region. These feeble market dynamics suggested a slowdown in the overall activity of the market and thus affected the trajectory of carbitol prices negatively. However, the automotive industries soon increased the procurement rate of the product and helped in the uplifting of the carbitol market.
 

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Europe

The third and fourth quarter of 2023 was a challenging period for the carbitol market in the European countries. The demand for carbitol remained subdued during both quarters, and the key drivers of the market also failed to showcase any improvement in the market activities. However, it was observed that the downstream sector was on the path of recovery, but the pace was slightly slower than anticipated, which thus fell short amid several other challenges. Additionally, the manufacturing sector could not sustain itself under the pressure of inflation, and inventories, along with consumer interest, dried up quickly, serving a negative influence on the carbitol prices.

North America

The condition of the carbitol market in North America was no different than in the Asian and European countries during Q3 and Q4 of 2023. The disruption of the supply-demand equilibrium and a substantial decline in the number of offtakes over a long period of time resulted in a depreciation in the prices of carbitol. Additionally, high raw material prices and upstream sector volatility also affected the cost of manufacturing, leading to a negative trend in the price of carbitol throughout the aforementioned period.

Analyst Insight

According to Procurement Resource, the price trend of Carbitol is estimated to experience oscillation in the upcoming quarters as the dimmed production activities and fluctuations in the cost of feedstock materials might negatively alter the carbitol price trend trajectory.
 

Carbitol Price Trend for First Half of 2023

Asia

In the Asia-Pacific market, the price trend of carbitol fluctuated throughout the first and second quarters of 2023. The number of offtakes from the downstream industries, especially from the pharma sector, declined significantly in the first quarter, and ample availability of products in the region proved to be a challenge for the prices of carbitol. However, during the mid phase of the second quarter, the trend of carbitol inclined with the support from the enhancement in trading activities and the sufficient number of orders from the pharma sector. But this inclination in prices was for a short span, as towards the end phase, the prices declined again.

Europe

The reduction in the cost of natural products and falling rates of consumption affected the price trend of carbitol negatively in the first quarter of 2023. In addition to this, the surplus inflow of the product in the region and plunging offtakes from the downstream industries resulted in the decline in the price trend of carbitol.

The initial months of the second quarter, however, proved to be beneficial for the carbitol market as the high cost of upstream products and feedstock supported the rise in the prices of carbitol. This positive trajectory was challenged by the reduction in the purchasing potential of buyers and the contraction in market momentum towards the end of the second quarter.

North America

In the first quarter, the prices of carbitol remained stable, unlike the trend observed in Europe and Asia-Pacific markets. This stagnancy in the prices was supported by the maintenance of supply-demand equilibrium and a rise in the number of offtakes.

The cost of production was also influenced by high prices of feedstock materials and volatility in the upstream sector, which resulted in a positive trajectory of the carbitol price trend. However, the late phase of the second quarter could not keep up with this trajectory, and with rising levels of inventories and the low appetite of consumers, the price trend of carbitol ultimately declined.

Analyst Insight

According to Procurement Resource, the price trend of Carbitol is expected to oscillate in the near future, given the uncertainties in the feedstock prices and market activities of downstream industries.
 

Carbitol Price Trend for the Second Half of 2022

Asia

Carbitol is obtained via the ethoxylation of ethanol, hence the prices of feedstock ethanol and ethylene oxide directly govern the price trend for Carbitol. The robust demand and feed availability caused the prices of ethanol to soar.

The increased inquiries from the biofuel industry further added to the high prices of platform ethanol. Whereas the price of ethylene oxide kept declining during the first two months owing to negative market sentiment but soon rebounded. Hence the fluctuating prices of feedstocks kept the Carbitol prices in check exhibiting signs of a healthy inflation.

Europe

The price trend for Carbitol exhibited a downward trend in the European region because of the bearish demand amid double-digit inflation and fears of recession. The weak demand from the downstream pharmaceutical and paint/coating sectors along with the fall in the prices of corn and sugarcane further crashed the prices.

The unplanned shutdown of certain manufacturing units did not affect the supply due to the ample buffer stocks and muted market transactions. Hence, the prices of Carbitol kept on the lower side of the scale during the said quarter.

North America

The prices of Carbitol kept afloat in the US domestic arena owing to the fluctuating patterns of feedstock ethanol and ethylene prices. The decreased inquiries from the paints, adhesives and textiles industries further added to the dwindling prices of Carbitol. However, towards the end of the fourth quarter, the prices began to incline as the buffer stocks started depleting.

Analyst Insight

According to Procurement Resource, the prices of Carbitol will remain afloat in the market considering the stabilizing demand and depleting buffer stocks. As the downstream demand from the paints, adhesives and textile industries returns the prices are likely to incline steadily.
 

Carbitol Price Trend for the First Half of 2022

Asia

Carbitol prices are constantly rising in the Asian arena. Due to the renewed production in the Chinese domestic market after the Lunar New Year break, the demands from the downstream sectors increased. Amidst the rising crude oil and natural gas prices and supply disruptions, the price soared to a new high.

Though the prices of primary raw materials like ethanol ,1122 USD/MT Ex Shanghai, and ethylene oxide, 7350 RMB/ton, are declining in the domestic market, the parallel decrease in the price trend of carbitol is not seen. The higher prices in the international market nudged the sellers to sell their products globally, profiting from the temporary difference in the price.

Europe

The continuing Russia-Ukraine conflict has led to an economic meltdown across Europe, giving way to runaway inflation. The ever-increasing crude oil and natural gas prices have led to a massive surge in the price of almost all commodities.

Due to the rising cost pressure of ethanol (1480 USD/MT FOB Frankfurt Germany) and ethylene oxide, the price of carbitol increased constantly. Also, the increasing demand from the downstream sectors offset the market supply-demand dynamics tipping the scales for carbitol towards the higher side.

North America

The uncertainties in the market because of rising crude oil prices and supply chain disruptions have led to an increase in the input costs of the industries, thereby pressuring their margin. Hence, domestic manufacturers increased upstream prices, offsetting downstream sectors' demands.

Due to this mismatch in the market dynamics, the price soared in the United States. The price of ethanol averaged 998 USD/MT FOB Texas due to the high feed price and biofuel demand. Hence, price trend for carbitol remained inflated in the domestic arena.
 

Carbitol Price Trend For the Fourth Quarter of 2021

Asia

Overall, market mood for the ether in the Asia Pacific area differs in Northeast Asia and Southeast Asia, while the market remained stable in the fourth quarter of 2021. The market in Southeast Asia was severely hit by increased crude oil offers following the OPEC+ alliance's decision to gradually raise crude oil production output in response to improved demand in the international market.

Due to reduced operational loads and limited availability of freight vessels in the Asia Pacific market, power rationing in China pushed up offers to an all-time high. As a result, GE offers remained buoyant throughout the quarter, and the Ex-Mumbai discussion for PEG was evaluated at 111360 INR/MT at the end of the quarter.

Europe

The European market remained stable in the fourth quarter of 2021, despite the prolonged energy crisis in Europe, which pushed on manufacturing costs proportionally due to increases in electricity rates. Furthermore, the need for upstream from the aviation industry, as well as the return of COVID, redirected feedstock supply to antifreeze and sterilising. As a result of the constrained availability versus adequate demand, producer quotations for GE in the European market remained buoyant.

North America

Due to the aftermath of Hurricane Ida, which disrupted freight transportation after becoming a category 4 hurricane, the market in the North American region remained concentrated in the fourth quarter of 2021. Its effects persisted into the fourth quarter, resulting in a 0.8 percent decline in m-o-m production along the Gulf Coast in the first part of the fourth quarter.

The demand prognosis was mixed, as queries from the aviation industry for antifreeze-related applications increased, while the discovery of the omicron version of COVID 19 created fresh uncertainty in the home market. In November, Lyondell Basell increased their bids for all grades of glycol ether by 44 USD/MT as a result of the ripple effect.
 

Carbitol Price Trend For First, Second and Third Quarters of 2021

Asia

Due to restricted stock and limited feedstock availability, as well as plant disruptions induced by the Chinese Lunar New Year vacations, supplies remained tight. Due to a supply deficit caused by extreme weather, imports from the North American region were lower. Demand, on the other hand, soared as the revival of COVID in Southeast Asian nations boosted disinfectant usage. Due to a scarcity of the feedstock propylene, the price of Propylene Glycol Ether (PGE) in India soared to 1085 USD/MT in March.

In Q3 of 2021, the Asia Pacific market mirrored the market prognosis in North America. Glycol ether saw huge growth in Asia during the quarter, owing to a combination of circumstances including constrained product availability in the aftermath of Hurricane Ida in the United States and congestion at numerous Chinese ports.

Prices in India skyrocketed this quarter, owing to delayed imports and a rise in ethylene oxide prices. Furthermore, expensive freight expenses and a scarcity of shipping containers wreaked havoc on the ether’s prices during this time period. In this quarter, however, demand from downstream sectors such as personal care, cosmetics, and others remained strong.

Europe

Supplies remained tight in the first quarter of 2021, owing to production difficulties in Northeast Europe and a drop in imports from the United States. Furthermore, seasonal supply problems were exacerbated by increased demand. The demand from downstream industries improved as the disinfectants and paints and coatings industries increased their usage. Market sentiments in Europe remained turbulent in the third quarter, owing to restricted supplies and decreasing production rates as a result of the natural gas crisis.

Furthermore, a massive increase in freight expenses and shipping container shortages contributed to a spike in GE pricing during this time period. Unprecedented increases in feedstock values pushed GE prices further higher. However, after the resuscitation of industrial and commercial operations, there was an improvement in downstream manufacturer offtakes in this quarter.

North America

During the first part of 2021, supply in the North American region were reduced since a major generating plant was undergoing maintenance. Furthermore, the market supply was tightened as a result of production losses induced by the cold weather conditions in the US Gulf region.

Eastman Chemicals announced a 550 USD/MT increase in glycol ether’s prices in March, citing increased demand from downstream sectors and firmer upstream rates. Buyers were irritated by long lead times, but refinery rates began to rise at the end of the quarter, promising better chemical availability in Q2.

During Q3 of 2021, the market in North America had an upward trend due to tight supply in the region and strong offtakes from downstream buyers. Furthermore, a rise in the price of upstream ethylene oxide aided the region's pricing trend. As a result of the Ida Hurricane, numerous firms on the Gulf Coast of the United States were forced to shut down their production plants and petrochemical refineries, resulting in a scarcity of feedstock. Furthermore, renowned ethylene oxide manufacturers Dow and BASF implemented a short turnaround at their EO production plants in August, affecting total downstream availability in the region.
 

Carbitol Price Trend For the Year 2020

Asia

Carbitol is a monoethyl ether of diethylene glycol.  Supply of Glycol Ether (GE) was significantly curtailed in Q3 as a result of some companies lowering their operating rates and a few imposing a temporary turnaround. Producers in China were forced to use numerous short turnarounds due to a lack of feedstock and occasionally poor profitability.

The supply issue was exacerbated by trade disruptions caused by the global epidemic, which were then compounded by bad weather. Early stockpiling actions conducted before the Golden Weeklong holidays anticipated for next month boosted demand in China by September.

During the recent supply shortages, China started an anti-dumping and anti-subsidy investigation into fair-trade agreements in the US glycol market. Southeast Asia's demand recovered noticeably as sectors ramped up production to make up for the previous quarter's deficit. Prices of butyl glycol in India increased consistently month over month in Q3, averaging 768 USD/MT, owing to lower imports.

North America

With modest increase in buying interest noticed in the latter half of the quarter, demand for many grades of glycol ether, including butyl di-glycol, butyl glycol, and propylene glycol methyl ether, saw a significant recovery. During the extended lockdown, there was a significant increase in renovation operations, which helped to boost demand in the building industry.

The paints sector saw a significant increase in demand for the compound as the country's virus fears faded. Although the market actors gained minimal advantage due to the removal of tight limitations, rising incidences of coronavirus stifled the much-anticipated market resurrection of glycol ether in the United States.

Europe

Due to low demand and no scheduled turnarounds, supply of the ether was plentiful in the first half of the quarter. Restricted imports from the United States helped to moderate this expanded demand and supply in late July. Its constricted margins in the region were further stabilised by a significant uptick in downstream demand. However, due to the reappearance of coronavirus in some parts of the region, demand fundamentals dropped off again in the last weeks of September, resulting in a drop in glycol ether’s pricing.

Procurement Resource provides latest prices of Carbitol. Each price database is tied to a user-friendly graphing tool dating back to 2014, which provides a range of functionalities: configuration of price series over user defined time period; comparison of product movements across countries; customisation of price currencies and unit; extraction of price data as excel files to be used offline.