Crude oil futures declined sharply on Monday as traders offloaded positions amid weak global cues and soft spot demand. The price drop reflects growing concerns over demand, putting downward pressure on crude oil prices.
Renewed fighting between US and Iran has slowed shipping through the Gulf of Hormuz, disrupting supply routes. Benchmark crude prices have climbed sharply from pre-conflict levels, reflecting heightened geopolitical risk. The upward price pressure is likely to continue while tensions persist.
Asia
In the first half of 2025, the Asian market for Propane-1,2-diol showed mostly stable to slightly soft trends. Demand from downstream sectors such as food additives, pharmaceuticals, and personal care products remained steady but not strong enough to push prices up. In China, new petrochemical capacities added pressure to the local supply chain, making the market more competitive and limiting upward price movement. Meanwhile, weak demand from the construction and coatings industries also kept overall buying sentiment cautious.
In India, high inventories and moderate consumption further reduced the price fluctuations, while South Korea saw a gradual pick-up in industrial activity, helping stabilize the market. Overall, Asia witnessed a calm and well-balanced PG market during H1’25, with no major disruptions.
Europe
In Europe, the Propane-1,2-diol market remained soft throughout H1’25, influenced by slow economic recovery and weak industrial output. Demand from key sectors such as automotive, construction, and personal care was subdued due to ongoing macroeconomic uncertainty. The availability of raw materials was consistent, and there were no major supply chain challenges. The mild winter also meant that seasonal consumption was lower than usual. Additionally, the strong euro during parts of the period helped ease import costs, indirectly applying downward pressure on domestic prices. Suppliers maintained adequate stock levels, and overall price movement was limited due to weak downstream demand.
North America
The North American PG market experienced more volatility compared to Asia and Europe. Early in the year, a severe winter increased heating fluid and antifreeze demand, temporarily supporting prices. However, strong export activity drew down domestic inventories, creating short-term supply tightness. Production resumed as winter eased, but logistical issues, especially at ports, kept supply constrained during parts of Q1. By Q2, market conditions began to stabilize as infrastructure recovered and production improved. Still, exports remained high, keeping pressure on local availability and preventing significant price relief.
Analyst Insight
According to Procurement Resource, Propane-1,2-diol prices are expected to gradually firm up across all regions, supported by seasonal demand recovery and improved industrial activity.
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Asia
In the second half of 2024, the Propane-1,2-diol market in Asia experienced varying trends across countries. During Q3, prices generally moved upward due to strong demand from end-use sectors like cosmetics, pharmaceuticals, and food processing. Manufacturing activity remained healthy, and logistical disruptions such as port congestion and shipping delays limited supply in some regions, which added to the price pressure.
As Q4 began, demand in China stayed high, especially in November, with companies building up stock for year-end sales. However, other countries in the region, like South Korea, saw lower industrial demand and an effort to reduce inventory levels, which caused a slight easing in prices. As a result, while some markets remained firm, others saw softer prices, making the overall trend mixed.
Europe
In Europe, Propane-1,2-diol prices followed a relatively weak pattern in H2’24. Q3 saw prices falling gradually due to sluggish demand from key industries such as automotive, plastics, and construction. Rising logistics costs and ongoing shipping disruptions added uncertainty, but they weren’t enough to push prices up because supply remained comfortable. This cautious environment extended into Q4, where seasonal slowdowns in industrial activity and an already sufficient supply kept prices under pressure. Buyers avoided bulk purchases and focused on using existing inventories, leading to little change in market sentiment across the quarter.
North America
In North America, the market for Propane-1,2-diol stayed stable throughout the second half of the year. In Q3, demand remained modest, with many industries relying on existing stocks. Sectors such as coatings, personal care, and pharmaceuticals showed some signs of improvement, but it wasn’t enough to trigger a significant price shift. By Q4, purchasing activity remained conservative, as businesses prepared for year-end closures and avoided excess stock. Supply was steady, and with no major disruptions, prices remained largely flat across the period.
Propane-1,2-diol is a synthetic liquid material that absorbs water. It is also used to manufacture polyester compounds, and as a foundation for deicing solutions. It is utilized by the chemical, food, and pharmaceutical sectors as an antifreeze when leakage could lead to contact with food. It is a thick, colorless liquid that is almost odorless and has a mildly sweet flavor. Having two alcohol groups, this substance is classified as a diol. It is miscible with several solvents, including as water, acetone, and chloroform.
C3H8O2
Transportation, Building & Construction, Food & Beverage, Pharmaceuticals, Cosmetics & Personal Care, Paints & Coatings, Consumer Goods, Electronics, Textile industry
Propylene glycol
The Dow Chemical Company, LyondellBasell Industries N.V., BASF SE, Archer Daniels Midland Company, Global Bio-chem Technology Group Co., Ltd, DuPont Tate, Lyle Bio Products
CurrencyUS$ (Data can also be provided in local currency)
Supplier Database AvailabilityYes
Customization ScopeThe report can be customized as per the requirements of the customer
Post-Sale Analyst Support360-degree analyst support after report delivery
Note: Our supplier search experts can assist your procurement teams in compiling and validating a list of suppliers indicating they have products, services, and capabilities that meet your company's needs.
The hydration process is used to produce propane-1,2-diol. Propylene oxide is hydrolyzed in the presence of a catalyst, such as sulphuric acid, in this process. The ultimate product is propane-1,2-diol, which is obtained by purifying the solution further.
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