Propylene glycol price December 2024 and outlook (see chart below)
- North America:US$1.52/KG, unchanged
- Europe:US$1.32/KG, unchanged
- Northeast Asia:US$0.88/KG, -2.2% down
- Southeast Asia:US$1.22/KG, -1.6% down
- Middle East:US$1.22/KG, 4.3% up
Business Analytiq assumes no responsibility or liability for any errors or omissions in the content of this site. The information contained in this site is provided on an “as is” basis with no guarantees of completeness, warranties of merchantability, accuracy, fitness for a particular purpose, usefulness or timeliness. None of the authors and contributors, or anyone else connected with Business Analytiq, in any way whatsoever, can be responsible for your use of the information contained in or linked from these web pages.
Propylene glycol price index
This post is a summary of the propylene glycol price developments. The price developments of propylene glycol (propane-1,2-diol) are expressed in US$ prices converted FX rates applicable at the time when the price was valid. Propylene glycol price index developments are calculated from multiple separate sources of data to ensure statistical accuracy.
The outlook for propylene glycol prices, on the second tab, is generated from different inputs including:
- Very recent price developments of immediate cost drivers of propylene glycol prices
- Recent price developments of underlying feedstocks which drive the price of propylene glycol
- Market futures for both cost drives and feedstocks of propylene glycol prices
- Adjustment of current supply/demand imbalances in the propylene glycol market
- Longer term trends in likely demand conditions
Further information on propylene glycol price chart
What is Propylene glycol
Propylene glycol is a clear, colorless, and virtually odorless liquid that is used in a variety of applications, including as a food additive, a solvent, and a moisturizing agent. It is a type of alcohol that is derived from propylene, a chemical intermediate that is made from fossil fuels, such as natural gas or crude oil.
How is Propylene glycol produced
Propylene glycol is produced through a chemical process that involves the hydration of propylene, which is a chemical intermediate made from fossil fuels, such as natural gas or crude oil. The process of producing propylene glycol typically involves the following steps:
First, Propylene is first obtained through the cracking of natural gas or petroleum. This involves breaking down larger hydrocarbons into smaller molecules through the use of heat and pressure.
Second, the propylene is then subjected to a hydration reaction, in which it is combined with water and an acid catalyst to produce propylene glycol. This reaction is typically carried out at high temperatures and pressures.
Third, the propylene glycol is then purified through a series of distillation and filtration steps to remove any impurities or unwanted by-products.
Finally the purified propylene glycol is then cooled and stored for use in a variety of applications, including as a food additive, a solvent, and a moisturizing agent.
Propylene glycol is also produced through a process called petrochemical synthesis, in which it is synthesized from petrochemicals, such as ethylene oxide and propylene oxide. This process involves the use of chemical catalysts and high temperatures to convert the petrochemicals into propylene glycol.
What drives the cost of Propylene glycol
Propylene glycol is a chemical compound that is used for a variety of industrial, commercial, and personal applications. The cost of propylene glycol can be influenced by several factors, including:
Feedstocks
Propylene glycol can be produced from several feedstocks, but the two primary sources are
Propylene Oxide
The most common feedstock for producing propylene glycol is propylene oxide, which is usually obtained from the hydrolysis of propylene oxide with water or by oxidation of propylene. Propylene oxide is a petrochemical derivative and is produced from crude oil or natural gas.
Glycerol
Glycerol is a byproduct of the biodiesel production process and can also be obtained from the hydrolysis of fats and oils. Glycerol can be converted to propylene glycol through a chemical reaction with propylene oxide.
Other possible feedstocks
Carbon monoxide and hydrogen, through a process called hydroformylation or oxo-synthesis
Ethylene glycol, through a process called hydrogenolysis
Sorbitol, through a process called dehydrogenation
Lactic acid, through a process called dehydration
The choice of feedstock depends on various factors, such as availability, cost, and sustainability. The use of renewable feedstocks such as glycerol, sorbitol, and lactic acid can provide a more sustainable route to produce propylene glycol compared to traditional petrochemical-based feedstocks.
Production Costs
The cost of producing propylene glycol can also affect its price. This includes the cost of raw materials, labor, energy, and other inputs. If the cost of producing propylene glycol increases, the price may also increase to maintain profitability.
Exchange Rates
Propylene glycol is traded globally, so exchange rates can also affect its price. If the currency in a country that produces propylene glycol strengthens against other currencies, the price may go up for buyers in other countries.
Overall, the cost of propylene glycol can be influenced by a range of factors, and these factors can vary over time.
What is Propylene glycol used for
Propylene glycol is commonly used as a food additive to help retain moisture and improve the texture of certain products, such as baked goods, frosting, and ice cream. It is also used as a solvent in the pharmaceutical and personal care industries to dissolve and disperse active ingredients in medications and personal care products.
In addition to its use in food and personal care products, propylene glycol is also used in a variety of other applications, including as an antifreeze in automobiles, as a humectant in tobacco products, and as a moisturizing agent in cosmetics. It is also used in the production of plastics, resins, and other industrial products.
Although propylene glycol is generally considered safe for use in food and personal care products, it can cause skin irritation in some individuals and may be toxic if ingested in large amounts. As with any chemical, it is important to follow the instructions on the label and use caution when handling propylene glycol.
Propylene glycol market size
The global propylene glycol market is a large and growing industry, with demand driven by a variety of factors, including the increasing use of propylene glycol in food and personal care products, the growing demand for propylene glycol in the automotive and aerospace industries, and the increasing use of propylene glycol as a solvent in the pharmaceutical and chemical industries.
According to data from Mordor Intelligence, the global propylene glycol market was valued at approximately $5.5 billion in 2020 and is expected to grow at a compound annual growth rate of 4.5% between 2021 and 2026. The Asia-Pacific region is the largest market for propylene glycol, accounting for more than half of the global demand, followed by North America and Europe.
The growth of the propylene glycol market is driven by a number of factors, including the increasing demand for propylene glycol in food and personal care products, the growing demand for propylene glycol in the automotive and aerospace industries, and the increasing use of propylene glycol as a solvent in the pharmaceutical and chemical industries. The market is also being driven by the increasing use of propylene glycol in the production of resins, plastics, and other industrial products.
According to https://oec.world/ : In 2020, the top exporters of Propylene glycol (propane-1,2-diol) were Germany ($302M), China ($140M), United States ($138M), South Korea ($130M), and Thailand ($116M).
In 2020, the top importers of Propylene glycol (propane-1,2-diol) were China ($92M), France ($91.6M), Italy ($70.6M), India ($68.5M), and Belgium ($57.2M).
Further reading
NEED A QUICK DOWNLOAD?
ACCESS TO OUR FULL DATABASE IS US$399/YEAR, WITH A 30-DAY $30 TRIAL
GET THAT DOWNLOAD IN 3 MINUTES!
BusinessAnalytiq provides a database of hundreds of market & price trend data, as well as online tools to set up benchmarks and leading indicators.
Where does the data come from?
- The source of the data are exclusively public non-confidential sources. We have no access to primary data
- This the index trend of the price trend of the "product category" in general, and not a single specification of the product in particular
- The data is a combination of contract and spot pricing
- Our algorithms are set up to eliminate significant product mix impact on the reported price
- We combine public publications, import/export records, trading prices, company announcements, magazine articles, tweets, and other sources of ad-hoc public information.
- The chart shows the our best approximation of the market trend based on our algorithm interpretation of the signals
- For most indexes we have multiple sources and we focus on using statistically-correlated sources
- As a function of our automation, it is likely that recent trends will be adjusted as we discover more information. So, for example, the price trend for February 2024 will be first calculated in February 2024 and adjusted in March, April and May 2024.
- We will update the data trend as more information becomes available, and this means that recent trends will always be adjusted as we get more data available
- The algorithm will regularly revise our understanding of market trends, and indicated market trends may change
- The data is presented in US$. The UOM of measure is shown in the Index list table
- Our automated software and we do our best to create an accurate representation of the trend
Where does the data NOT come from?
- We do not purchase data from any other source and republish it.
- We will not purchase data from any other source and republish it
- We do not extrapolate trends, even for the forecast. We look for other market signals and leading indicators
What data should our company use?
- If you are making decisions driving significant share of profit, we always recommend that you buy data from the companies who invest in direct primary market access such as ICIS, amongst many others
- Our data, at best, represents an estimate of the market trend based on public information
- We have no direct access to the market, and we do not interview suppliers and customers
- Our automated analysis tools in the online software are set up to combine our data with other sources of data
- We do not recommend that you use our data for direct price mechanisms, as we may change and improve the data trends over time, including historical data
What does the quality indication in the main menu mean?
- Quality level A: Data is from a reliable and confirmed source
- Quality level B: Data is from multiple credible sources and there are no major statistical inconsistencies between them
- Quality level C: Data is from multiple credible sources and there are some statistical inconsistencies between them
- Quality level D: Data is from a single credible source, but we cannot verify the data
- Quality level E: Data is either:
- From a single source, which we consider reliable, but we cannot verify the data.
- From 2 or more sources which have some periods of contradicting trends.
- Quality level F: Data is from a single source which we consider indicatively correct, but the data is anecdotal and we cannot verify the data.
What are the disclaimers?
- We assume no responsibility or liability for any errors or omissions in the content of this site.
- The information is provided on an “as is” basis with no guarantee of completeness, accuracy, usefulness, fitness for purpose or timeliness.
- By their nature, outlooks are always uncertain
How often do we update the data?
- We aim to update the data series on the 9th and 24th of each month (but we do not always make it for each chart)
- The data for the current month and recent history are fine-tuned over time.
What are we doing to improve the data?
- We are continually improving our data collection and processing methods
- Pricing data will be updated from time to time as we improve the accuracy
- We are reviewing all data sources in the first half of 2024.
- There will be continuous fine-tuning of the trend and forecast algorithm as part of that.
- The key focus in 2024 is to add many additional indexes
How can i give feedback on the data or request for new indexes
- Feel free to contact us if you have a specific request. You can reach us via the Contact us page