In the second half of August 2024, the European Glycol Ether market players decreased their prices by 4.5% amid depressed demand and offtakes from buyers. The orders for Glycol Ether to produce adhesives, paints, and coatings fell due to sluggish consumption of materials from the downstream construction sector. In July, the eurozone construction sector continued to contract sharply, with activity plummeting notably in the past six months. This acceleration in decline was driven by a significant downturn in housing activity, which proved to be the weakest segment. Despite this, cost burdens rose only modestly. The Eurozone Construction PMI Total Activity Index fell in July from June 2024, reflecting a steep decline in total output. Simultaneously, the inquiries for Glycol Ether from daily care product manufacturers were stable due to the moderate consumption of end products by domestic buyers. At the same time, the provisional month-on-month Consumer Price Index (CPI) for July 2024 rose by 2.3% in July 2024, after +2.2% in June, according to the provisional estimate made at the end of the month.
Meanwhile, the operating rates were moderate at the regional Glycol Ether manufacturing units based on the demand from the market, and supply rates were stable from suppliers. Production costs for Glycol Ether increased due to rising feedstock ethylene costs, which were influenced by limited supply availability caused by reduced operation rates at regional manufacturing units during the summer holiday. This situation affected Glycol Ether production rates. At the same time, the Eurozone Manufacturing Purchasing Manager's Output Index fell in July, reaching its lowest level in seven months, indicating a significant decline in manufacturing output across the Eurozone. Consequently, exports to importers were reduced, with the sub-index for European exports declining for the fifth consecutive month, showing its steepest drop of the year and substantial decreases over the past year.
According to 果酱视频 data sources, the Ethylene Glycol Monobutyl Ether (GE) FOB Hamburg prices in Germany witnessed USD 1500/MT at the end of the week concluded on 23rd August 2024.
As per the anticipation, Glycol Ether prices in the European market are expected to rise toward the end of the third quarter of 2024, driven by restocking activities following the conclusion of the summer holidays in the region. The demand for Glycol Ether would improve from buyers. At the same time, production costs would increase due to the anticipated incline in feedstock Ethylene prices, and market players will raise their Glycol Ether quotations.
