Propylene Glycol Pricing Assessment

• Russia-Ukraine Conflict (2022): The Russia-Ukraine conflict, which escalated significantly in 2022, has had various impacts on global supply chains, including the prices of chemicals like propylene glycol. The conflict affected the supply of raw materials and energy resources, which are critical for producing propylene glycol. This led to increased production costs. The uncertainty surrounding the conflict resulted in price volatility for many chemicals, including propylene glycol, as suppliers adjusted to fluctuating costs and demand 
• Texas Winter Storm (2021): The extreme cold caused many chemical plants and refineries in Texas to shut down or operate at reduced capacity, disrupting the supply of propylene glycol and its raw materials. The cold weather increased demand for propylene glycol in antifreeze and de-icing products, further straining supply. The combination of supply disruptions and heightened demand led to sharp price increases for propylene glycol. Prices surged due to scarcity and increased production costs. 
• COVID-19 Pandemic (2020): As supply constraints developed and demand from sanitizers grew, prices began to rise later in 2020, leading to increased costs for manufacturers and consumers. 
• Geopolitical Tensions (2018-2019): Tariffs and trade disputes between the U.S. and China led to increased costs for raw materials and finished products, affecting the chemical industry and driving up prices for propylene glycol. Tensions in regions like the Middle East influenced global oil and gas prices, impacting production costs for petrochemical products, including propylene glycol 
• Shale Gas Boom (2010s): the shale gas boom stimulated growth in the U.S. chemical sector, leading to increased production of propylene glycol and related products. The U.S. became a more competitive player in the global market, exporting propylene glycol and benefiting from favorable pricing dynamics. 
• Global Financial Crisis (2008-2009): The economic downturn led to reduced demand for many industrial products, including propylene glycol, as industries like automotive, construction, and consumer goods scaled back operations. As demand weakened, prices for propylene glycol experienced significant declines. Many producers faced pressure to lower prices to stimulate sales and manage inventory. 
• Hurricane Katrina (2005): The hurricane caused extensive damage to chemical plants and infrastructure in the Gulf Coast region, leading to temporary closures and operational halts. Damage to transportation networks, including ports and roads, disrupted the supply chain for propylene glycol, affecting both production and distribution 

These events underscore the Propylene Glycol market’s vulnerability to global disruptions and highlight the need for continuous monitoring of supply-demand dynamics.