The global Polyethylene Glycol (PEG-400) market experienced a mixed performance during the first quarter of 2026. For most of the quarter, market conditions remained relatively balanced, with prices moving within a limited range as demand from major industries stayed moderate. Manufacturers continued production without major disruptions, and buyers purchased only the quantities they needed. However, the market changed noticeably during March when several global events created strong upward pressure on costs and pricing.
The biggest reason behind this shift was the growing geopolitical tension in the Middle East. The conflict between Iran and Israel created uncertainty across global energy markets and disrupted important crude oil supply routes. Since crude oil is closely connected with the production of important chemical feedstocks like ethylene oxide, manufacturers began facing higher production expenses. At the same time, transportation costs increased because shipping routes became more complicated, making it more expensive to move raw materials and finished products around the world.
Another important factor was the disruption in supply chains. Several producers faced logistical challenges, while maintenance shutdowns at some manufacturing plants reduced product availability. These supply concerns became more visible toward the end of the quarter, encouraging buyers to secure material before prices increased further. As a result, many markets experienced a sharp rise in prices during March, even though earlier months had remained comparatively stable.
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Many industries continued to consume polyethylene glycol throughout the quarter. Personal care products, cosmetics, pharmaceuticals, coatings, and specialty chemicals remained important sectors supporting demand. Although purchasing activity was cautious during January and February, businesses became more active when they noticed increasing costs and tighter supply conditions. This change in buying behavior helped strengthen market sentiment during the final month of the quarter.
The Polyethylene Glycol price trend reflected this pattern of stability followed by a strong recovery. Instead of witnessing continuous price increases throughout the quarter, the market remained balanced for several weeks before external events pushed production costs and selling prices higher. This showed how global economic conditions, energy markets, and logistics can quickly influence chemical markets even when demand itself remains relatively steady.
Several producing countries also experienced higher manufacturing costs because feedstocks became more expensive. Rising crude oil values directly affected ethylene oxide prices, which increased the overall cost of producing PEG-400. Manufacturers attempted to balance production with available demand, but higher operating expenses eventually resulted in higher selling prices across many international markets.
South Korea presented an interesting market situation during Q1 2026. Overall prices declined slightly by around 2% compared to the previous quarter because demand from coatings and cosmetics remained soft. However, March brought a dramatic turnaround, with prices jumping by approximately 32% from February. Besides geopolitical developments, scheduled maintenance at the country’s VPEG production facility further reduced supply and added additional pressure to the market.
Saudi Arabia experienced a stronger quarterly performance. Prices increased by about 3% during the quarter as demand from cosmetics, pharmaceuticals, and industrial applications remained healthy. The biggest movement occurred during March when prices climbed nearly 35%. Rising crude oil costs, higher feedstock expenses, and supply chain disruptions all combined to support this sharp increase.
Malaysia followed a similar pattern. Although prices slipped slightly during the overall quarter because of weaker demand, March witnessed an impressive recovery of around 30%. Political tensions affected crude oil transportation, which raised energy costs and increased manufacturing expenses. Logistics challenges also made it more difficult for suppliers to maintain smooth deliveries, contributing to tighter market conditions.
India experienced steady improvement during the quarter. Import prices increased by approximately 2% as demand from personal care products, coatings, and specialty chemical manufacturers gradually improved. The market changed significantly in March, when prices surged by nearly 36%. Rising import costs, supply shortages from exporting countries, and higher feedstock expenses all contributed to the rapid increase.
Turkey recorded one of the strongest monthly price movements during Q1 2026. Quarterly prices rose around 6%, supported by demand from pharmaceutical, industrial, and personal care sectors. During March alone, prices increased by approximately 46%, reflecting the combined effect of geopolitical uncertainty, higher crude oil prices, expensive raw materials, and ongoing shipping disruptions.
Indonesia experienced a different quarterly pattern. Prices fell slightly during most of the quarter as demand remained moderate across several industries. However, the market strengthened considerably during March when prices increased by roughly 29%. Reduced imports, limited supply availability, and higher feedstock costs created stronger upward pressure toward the end of the quarter.
Vietnam also showed a similar market structure. Although quarterly prices declined marginally because of balanced demand, March recorded a significant increase of around 30%. Limited exports from neighboring suppliers, combined with higher logistics costs and expensive raw materials, tightened availability and encouraged stronger buying activity.
Overall, the first quarter of 2026 demonstrated how quickly chemical markets can respond to unexpected global developments. While demand remained relatively steady across most industries, geopolitical events and supply chain disruptions became the dominant factors influencing pricing during the final month of the quarter. Higher energy prices, rising feedstock costs, and transportation challenges created stronger cost pressure for manufacturers across multiple regions.
The market outlook remains cautiously optimistic as industries continue to require polyethylene glycol for a wide variety of applications. Future pricing will likely depend on crude oil movements, feedstock availability, freight conditions, and the stability of international supply chains. If geopolitical tensions ease and logistics improve, markets may become more balanced. However, if supply disruptions continue, manufacturers and buyers may continue to face pricing volatility.
Businesses across the chemical industry are expected to closely monitor inventory levels, procurement strategies, and global energy markets before making large purchasing decisions. Careful planning will remain important as companies attempt to balance production costs with customer demand in an environment that continues to change quickly.
For companies monitoring Polyethylene Glycol prices, keeping track of feedstock movements, logistics conditions, and regional market developments will remain essential for making informed purchasing and business decisions throughout the coming quarters.
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