Propylene and Ethylene Oxide Tight Supply in the Global Market

The geopolitical conflicts taking place in the middle East are impacting the propylene and ethylene oxide outputs which consequently affects the supply of both propylene and ethylene glycols. The propylene glycol market is experiencing a tight supply with upward pricing tendency with producers pressured for higher margins whereas the ethylene glycol market is experiencing a more dramatic global shortage. A projected 12 % decline in global ethylene output for 2026, largely due to conflicts in the Middle East, has directly removed 8 million tons of annual ethylene glycol export capacity from the global market.