China And Europe DPG Spot Hold At High Level On Limited Flexibility

- Jul 02, 2018-

China and Europe DPG spot hold at high level on limited flexibility as the supply tension.      July-2-2018


Last month, Dipropylene glycol(DPG)price touched range of 3,700-4,000/T and remained high.

Demand for DPG is gaining momentum seasonally in the downstream flavours and fragrances and detergents sectors. So both China and Europe DPG spot hold at high level on limited flexibility as the supply tension.


MPGI is mainly used in sectors such as UPR, de-icer and antifreeze. DPG finds outlets in flavours and fragrances and the UPR sectors, among others.

PO is used to make flame retardants, modified carbohydrates (starches), synthetic lubricants, oil field drilling chemicals and textile surfactants.

DPG is co-produced during the MPG manufacturing process, but it is produced at a structurally lower yield relative to MPGI. 

Demand was strong for DPG during 2017, compounded by structural factors including short supply and spiking prices as a result.