Propylene glycol price April 2024 and outlook (see chart below)
- North America:US$1.37/KG, 3.8% up
- Europe:US$1.36/KG, -0.7% down
- Northeast Asia:US$0.95/KG, -2.1% down
- Southeast Asia:US$0.69/KG, -2.8% down
- Middle East:US$0.75/KG, -2.6% down
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Propylene glycol price index
This post is a summary of the propylene glycol price developments. The price developments of propylene glycol (propane-1,2-diol) are expressed in US$ 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
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