Polyethylene Glycol, commonly known as PEG, is an important chemical used in many industries. It is widely found in personal care products, pharmaceuticals, coatings, lubricants, industrial chemicals, and many other applications. Because it serves so many industries, its market often changes according to demand, raw material costs, and global economic conditions. During the first quarter of 2026, the market experienced mixed conditions. Prices remained fairly stable for much of the quarter, but the situation changed noticeably in March when several regions recorded significant increases. Polyethylene Glycol Price Trend reflected this shift as rising production costs, geopolitical tensions, and supply chain disruptions created upward pressure across global markets.

During the first two months of the quarter, demand remained moderate in most regions. Buyers continued purchasing material mainly to meet current production requirements rather than building large inventories. This balanced buying behavior helped keep prices relatively steady despite normal fluctuations in raw material costs. However, toward the end of the quarter, several unexpected events changed market conditions. Rising crude oil prices, disruptions in transportation, and limited raw material availability combined to increase production expenses, resulting in higher prices across many countries.

One of the biggest reasons behind the March price surge was the growing geopolitical tension in the Middle East. The conflict between Iran and Israel created uncertainty in global energy markets and affected crude oil supply routes. Since crude oil is closely connected to many petrochemical products, rising oil prices increased the cost of important raw materials such as ethylene oxide, which is used in the production of polyethylene glycol. As manufacturing costs increased, producers gradually raised their selling prices to offset higher expenses.

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Supply chain disruptions also played an important role during the quarter. Shipping delays, higher freight charges, and logistical challenges made it more difficult for manufacturers and importers to receive materials on time. In several markets, scheduled maintenance at production plants further reduced available supply. Together, these factors tightened market availability and encouraged buyers to secure material before prices moved even higher.

South Korea experienced mixed market conditions during the quarter. Demand from industries such as cosmetics, coatings, and industrial manufacturing remained weaker than expected during the early part of the quarter, leading to a slight decline in prices compared with the previous quarter. However, the situation changed dramatically in March. A scheduled maintenance shutdown at a major production facility reduced supply, while higher energy costs and geopolitical uncertainty pushed production expenses upward. These combined factors caused one of the strongest monthly price increases in the region.

Saudi Arabia recorded a healthier market throughout the quarter. Demand from pharmaceutical companies, cosmetics manufacturers, and industrial users remained steady, supporting moderate price growth. During March, the market experienced a much sharper increase as higher crude oil prices raised production costs. Supply chain disruptions and tighter availability of feedstocks also contributed to stronger pricing, making Saudi Arabia one of the markets with significant monthly gains.

Malaysia followed a similar pattern. Market demand remained relatively soft during the first part of the quarter, leading to slightly lower prices compared with previous months. However, geopolitical developments quickly changed market conditions in March. Rising energy prices, increasing feedstock costs, and logistical challenges increased production expenses. As a result, suppliers adjusted prices upward while buyers continued purchasing to meet production needs.

India experienced a positive market throughout the quarter. Demand from personal care manufacturers, specialty chemical producers, and coatings industries remained healthy, supporting steady consumption. Import costs also increased as global production expenses rose. In addition, maintenance shutdowns at production facilities in South Korea limited available imports, tightening supply in the Indian market. These combined factors contributed to a sharp increase in prices during March as buyers responded to growing supply concerns.

Turkey recorded one of the strongest monthly increases during the quarter. Demand from pharmaceutical companies, industrial manufacturers, and personal care producers remained stable throughout the period. However, rising crude oil prices, higher freight costs, and global supply chain disruptions significantly increased import costs during March. Buyers became more active as concerns about future availability grew, resulting in substantial upward price movement.

Indonesia experienced relatively moderate demand throughout most of the quarter. Consumption from cosmetics, pharmaceutical, and industrial sectors remained steady but not exceptionally strong. Even so, March brought a significant market change. Reduced imports from Malaysia, combined with global supply disruptions and rising raw material costs, tightened product availability. These conditions caused prices to increase sharply despite otherwise balanced market demand.

Vietnam also experienced a similar market pattern. Demand remained fairly stable during the first two months of the quarter, helping maintain balanced market conditions. However, rising feedstock costs, limited regional exports, and higher transportation expenses created additional pressure by March. Importers faced increasing procurement costs while available supply became tighter, supporting a strong monthly increase in market prices.

Across the global market, one common factor connected nearly every region. Although demand remained generally moderate, production costs increased steadily due to higher energy prices and more expensive raw materials. At the same time, logistical challenges slowed product movement between countries, creating localized supply shortages. Even markets with relatively stable demand experienced higher prices because manufacturers faced greater operating expenses.

Another noticeable feature of the quarter was the cautious behavior of buyers. Most companies avoided unnecessary stockpiling during the early months because market conditions remained uncertain. Instead, they focused on purchasing only what was required for immediate production. When prices began rising rapidly during March, many buyers accelerated procurement to avoid paying even higher prices later, further supporting the upward market movement.

Looking ahead, the polyethylene glycol market will continue to depend on several important factors, including global energy prices, feedstock availability, transportation costs, and industrial demand. If geopolitical tensions ease and supply chains become more stable, production costs could gradually normalize. However, if energy markets remain volatile and raw material prices continue rising, manufacturers may continue adjusting prices upward. Under current conditions, Polyethylene Glycol Prices are expected to remain influenced by global supply conditions, manufacturing costs, and demand from key industries such as pharmaceuticals, personal care, coatings, and specialty chemicals.

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About Price Watch™ AI

Price-Watch AI is an India-based, independent raw material price reporting agency that provides real-time price forecasts and data-driven insights into global raw material markets. Price-Watch AI specializes in tracking raw material prices, analyzing market trends, and delivering timely updates on plant shutdowns, supply disruptions, capacity expansions, and demand-supply dynamics. The Price-Watch AI platform empowers manufacturers, traders, and procurement professionals to make faster, smarter decisions. Leveraging AI-powered forecasting and over a decade of historical data, Price-Watch AI transforms market volatility into actionable opportunity.

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