Dow Chemical Announces Increase in North American Glycol Ether Prices Starting January 6, 2025

The North American glycol ether market continues to show a bullish trend as the year ends. Throughout December, glycol ether prices continued to rise, reflecting strong demand across industries. The U.S. personal care industry has made a particularly significant contribution to this, with growing demand for moisturizers in cosmetics production driving stable demand for glycol ethers. E-commerce sales in the U.S. personal care industry increased 14.6% year-over-year during Black Friday 2024, highlighting strong seasonal demand and consumers' increasing preference for online shopping.

On December 19, 2024, Dow Chemical announced that the price of several glycol ether grades in North America would increase by US$0.05/pound (US$110.23/ton). The adjustment will take effect on January 6, 2025. The price adjustment will affect key glycol co-solvents used in multiple industries, including butyl carbitol solvent,  ethylene glycol butyl ether and butoxytriglycol.

Affected products butyl carbitol solvent is widely used in dry paints, coatings and cleaning products and in dry industrial and household cleaners, adhesives and inks; ethylene glycol butyl ether is known for improving film formation, flow and leveling, it is essential for oils, coatings, varnishes, and used in the production of inks and printing materials; butoxytriglycol is valuable in a variety of industrial applications where it helps improve application properties such as flow, leveling, and film formation.

Meanwhile, glycol ether production remained stable in November and export prices remained stable despite rising energy costs. Due to the demand for ethylene glycol in automobile antifreeze, the price of raw material ethylene oxide has increased, providing additional cost support. At the same time, the energy cost index rose 0.2% during the month, further affecting production costs. Glycol ether supply rates are expected to remain constrained during the winter peak, with market participants likely to increase offer prices due to low supply and rising production costs.

Looking ahead, orders for glycol ethers are expected to increase, orders from cosmetics manufacturers are expected to grow steadily, and demand from the FMCG industry will also grow further. Rising demand is expected to enhance the market prospects of glycol ethers.

In short, Dow Chemical Company raised the price of glycol ether products, reflecting rising energy prices and increased demand for raw materials such as ethylene oxide, which has led to rising production costs. With supply expected to be tight during the winter peak, this decision is in line with market conditions and ensures stability amid growing demand from sectors such as personal care and FMCG.