World Propylene Glycol Market to Reach Supply-Demand Balance in 2015



As of 2013, the global PG production grew by 8% YoY and exceeded 2.18 million tonnes. One of the major drivers of such robust growth was the launch of a new SCG-Dow PG unit in Thailand in March with an annual capacity of around 150,000 tonnes per year. In 2013, the global average PG industry operating rates were around 77%. The worldwide PG market is gradually shifting to Asian countries and especially to China. Another major trend in the PG market is the production of PG from bio raw materials. At present, the US is the main country PG producer, accounting for over 30% of the global PG supply.

Propylene Glycol: world production by country, 2013

Dow, Lyondell Chemical Company, Global Bio-Chem Technology Group Company Limited, Ineos Oxide, Nihon Oxirane Co, SINOPEC Zhenhai Refining & Chemical Company, Archer Daniels Midland Co., SKC Chemicals Group, Shell Eastern Petroleum (Pte), Arrow Chemical Group Corp., BASF AG, Repsol YPF Chemicals and Huntsman Corp are amid the top players in the world PG market.

In 2013, the world production capacity of propylene glycol (PG) was estimated at more than 2.81 tonnes. APAC called for almost 40% of the total capacity, followed by North America and Europe with shares of nearly 29.18% and 26.94%, respectively.

Propylene Glycol: world capacity broken down by region, 2013

In 2013, the global PG consumption volume exceeded 2.12 million tonnes. Novel capacity additions and a noticeable increase of capacity utilization rates have provoked a slight oversupply in the world PG market.

The overall PG market is anticipated to grow by nearly 4.5% per year in the upcoming years. The strongest growth will likely to be registered in China and a number of other emerging regions. There is forecast to be a balance reached between PG supply and demand globally in 2015. Furthermore, the global PG supply is predicted to exceed 2.56 million tonnes in 2017.

More information on the propylene glycol (PG) market can be found in re report “Propylene Glycol (PG): 2014 World Market Outlook and Forecast up to 2018”.