In Q1 2024, prices of PTMEG (Polytetramethylene Ether Glycol) in major exporting countries like China and Taiwan declined by around 19% and 2.6% respectively compared to the prices in Q4 2023. Demand from key sectors, such as textiles and automotive, weakened as economic conditions slowed, particularly in China, where manufacturing activity faced headwinds. Additionally, several manufacturers had ramped up production capacity, leading to an oversupply in the market. Raw material prices allowed producers to lower prices, while high inventory levels from Q4 2023 prompted manufacturers to offer discounts to clear stock, exacerbating the price drop. This bullish price trend was also observed in major importing countries, including India, the USA, Brazil, and Turkey.
In Q2 2024, PTMEG (Polytetramethylene Ether Glycol) prices in major exporting countries like China and Taiwan declined as compared to Q1 2024. This was primarily driven by persistent oversupply and weakened demand. Key factors included a slowdown in manufacturing activities, particularly in China, where economic growth remained sluggish, impacting sectors such as automotive and textiles that heavily utilized PTMEG. Additionally, several manufacturers had increased their production capacities, further saturating the market. This trend was also evident in major importing countries, including India, the USA, Brazil, and Turkey.
In Q3 2024, prices of PTMEG (Polytetramethylene Ether Glycol) in major exporting countries like China and Taiwan in the APAC region show a declining trend compared to Q2 2024. This downward trajectory is also evident in major importing countries, including India, the USA, Brazil, and Turkey. The consistent decline since early 2023 is largely due to oversupply and weak demand in key markets like China and India. The APAC region remains the largest market for PTMEG, driven by strong demand from industries such as textiles, automotive, and coatings. Additionally, PTMEG prices are closely tied to fluctuations in its primary feedstock, tetrahydrofuran (THF), as well as butane and butadiene. Any changes in these raw material costs significantly impact PTMEG pricing.
In Q4 2024, PTMEG (Polytetramethylene Ether Glycol) prices in the Asia Pacific (APAC) region are projected to remain under pressure, continuing the downward trend observed in Q3 2024. This anticipated decline is attributed to cautious consumer demand and decreasing production costs. However, a stabilization and potential recovery in the market is expected as demand from key sectors, particularly textiles and spandex fibers, begins to rebound.