Price trend

According to the monitoring data of SunSirs, as of October 14, the ex-factory transaction price of domestic propylene glycol was 9,333 RMB/ton. Compared with October 1, the average price was raised by 167 RMB/ton, an increase of 1.82%.Compared with September 1, the average price was raised by 1,533 RMB/ton, an increase of 19.66%.

After the holiday, raw materials continue to be high, propylene glycol is under pressure and adjusted narrowly, and rise slightly

After the holiday, the domestic propylene glycol market fluctuated within a narrow range and adjusted both up and down, and the overall upward trend was mostly. The main reasons for this trend come from two aspects. On the one hand, due to the cost pressure caused by the continuous increase in the raw material propylene oxide, the propylene glycol market is difficult to fall, the price is passively pulled up, and the offers of many factories remain high or under pressure to increase. The range is 200-300 RMB/ton. The current high-end transaction price of propylene glycol refers to 9,800 RMB/ton.

On the other hand, the propylene glycol plant started normally after the holiday, the on-site inventory was sufficient, downstream users only maintained just-needed purchases, and were strongly resisted by high prices. Under the stalemate between supply and demand, some factories and distributors declined slightly, with a decline of around 200 RMB/ton. The current low-end transaction price of propylene glycol refers to 9,000 RMB/ton.

Internationally, China's crude oil imports continued to grow, coupled with the continued decline of the U.S. dollar, international oil prices rebounded. On Tuesday (October 13), WTI's November 2020 futures was 40.20 US dollars per barrel, an increase of 0.77 US dollars, and Brent's December 2020 futures was 42.45 US dollars per barrel, an increase of 0.73 US dollars. The main contract of China SC crude oil futures in 2012 fell 3.3 RMB/barrel to 272.2 RMB/barrel.

Insufficient demand is hard to ignore, short-term weak operation is the main performance

At present, the cost of propylene glycol is obviously inverted, the demand is weak, and the export is affected by the exchange rate, freight and domestic prices, foreign trade sales are average, the performance is flat, and the overall sales pressure of the market remains unchanged. Therefore, it is expected that the price of propylene glycol will be weak and narrowly adjusted in the short term.

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