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July 9th, 2025

Diethylene Glycol Prices Index: Trend, Chart, News, Graph, Demand, Forecast

In the first quarter of 2025, the Diethylene Glycol (DEG) market displayed a mixed but predominantly bearish pricing trend across global regions, influenced by regional dynamics involving feedstock costs, supply-demand imbalances, production maintenance, and logistical variables. Diethylene Glycol prices in North America started the year on a firm note due to tight supply triggered by anticipated shortages of Ethylene Oxide (EO), elevated production costs, and planned maintenance activities. The initial bullish momentum was further fueled by logistical challenges such as rising container freight rates and port strike concerns, which constrained DEG availability in January. Demand from the paints and coatings sector, particularly linked to the automotive industry, remained robust during the early weeks, contributing to a brief price rally. However, by late February, the DEG market in the U.S. began to show signs of weakness as upstream EO and crude oil prices started declining, eroding production cost support. Simultaneously, downstream demand became sluggish, especially as the automotive sector experienced a dip in new vehicle sales, resulting in reduced consumption of DEG-based products. This led to a gradual but steady price drop through March, with prices settling at USD 930/MT CFR Texas by the end of the quarter, underscoring a shift toward bearish market sentiment in North America.

The European Diethylene Glycol market during Q1 2025 mirrored this downward trend, as month-over-month prices declined under the weight of muted downstream activity, particularly from the construction and automotive industries. January opened with cautious buying behavior, as market participants adopted a wait-and-watch approach post-holiday, while inventories remained sufficient and domestic EO production costs stayed largely stable. Despite steady supply conditions, weak demand from resin manufacturers and minimal growth in the end-use sectors led to price erosion. February brought minor relief as European buyers responded to tightening supply signals from the U.S. following force majeure declarations. However, these short-term gains were insufficient to reverse the prevailing market softness. The construction sector continued to underperform, and even a slight rebound in electric vehicle production failed to significantly lift DEG consumption. As March unfolded, persistent logistical bottlenecks and restricted imports could not offset the overriding impact of falling feedstock prices and dwindling demand. By the end of the quarter, Diethylene Glycol prices in Germany had declined to USD 908/MT CFR Hamburg, reflecting the sustained downward trajectory of the European market and further solidifying bearish sentiment.

In the Middle East and Africa (MEA), DEG prices in Q1 2025 followed a relatively stable to bearish course, driven by mixed supply-side developments and weak demand fundamentals. January began with price stability, supported by balanced supply-demand conditions and sufficient inventory availability. However, oversupply pressures emerged by mid-month as overseas inquiries weakened and regional demand stagnated. Short-term maintenance-related shutdowns at key Saudi Arabian production units, including MEGlobal and Sharq Unit-4, offered momentary price support in the third week of January. Nonetheless, the recovery was fleeting, as broader demand softness from Asian buyers and downstream resin sectors persisted. February maintained a stable pricing outlook with minimal week-on-week fluctuations. Despite ongoing maintenance and easing EO feedstock prices, the absence of aggressive procurement activity across key consumer regions kept the market in check. Logistics disruptions during Ramadan in late March offset gains from marginally improved export volumes. Consequently, Diethylene Glycol prices in Saudi Arabia closed the quarter at USD 713/MT FOB Jeddah, highlighting the overall bearish tone that dominated the MEA market throughout the period.

In contrast, the Asia-Pacific (APAC) region observed a bullish pricing trend for Diethylene Glycol during the first quarter of 2025, mainly driven by tightening supply conditions and gradual demand recovery. January began with stable pricing due to healthy inventory levels and subdued activity in the resin and construction sectors. However, a significant shift occurred in late January when maintenance shutdowns at major Middle Eastern facilities limited supply to APAC markets. Concurrently, post-holiday restocking in major economies like China and South Korea, combined with delayed import cargoes from the Middle East, created noticeable supply tightness that fueled upward price momentum. February witnessed temporary disruptions due to the Lunar New Year holidays, which slowed trading activity and demand from the automotive industry. Nonetheless, post-holiday recovery was swift, with rising procurement activity and improved operational rates in downstream sectors helping sustain price increases. March continued the bullish tone as demand in the paints and coatings sector picked up amid a rebound in automotive production. Falling freight rates added competitive advantages for local producers, while persistent supply constraints due to overseas maintenance activities reinforced pricing gains. By the end of the quarter, DEG prices in South Korea reached USD 634/MT FOB Busan, confirming the strength of the upward price trend in the APAC market.

Across global regions, the DEG market's behavior in Q1 2025 underscores the sensitivity of prices to both feedstock movements and supply-demand dynamics. In markets like North America and Europe, weakening demand and easing upstream costs led to consistent price declines, while APAC emerged as the outlier, with rising prices supported by supply disruptions and downstream recovery. Looking forward, Diethylene Glycol price trends will likely remain subject to fluctuations in Ethylene Oxide and crude oil costs, global maintenance schedules, logistics performance, and macroeconomic indicators affecting end-use sectors. Stakeholders across the supply chain—from producers to traders and downstream users—must monitor these variables closely to adapt to the evolving DEG pricing landscape. With potential for seasonal demand changes, economic policy adjustments, and continued logistical volatility, the Diethylene Glycol market remains poised for ongoing shifts in pricing patterns through the upcoming quarters.

Get Real time Prices for Diethylene Glycol (DEG): https://www.chemanalyst.com/Pricing-data/diethylene-glycol-66

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