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SunSirs: Raw Materials Were on the Rise, the Spot Was Tight, and the Propylene Glycol Ushered in a "Surge”
November 20 2020 11:41:20SunSirs(John)

Price trend

According to the monitoring data of SunSirs, as of November 19, the ex-factory price of domestic industrial-grade propylene glycol was referenced to 12,466 RMB/ton. Compared with November 17, the average price was increased by 1,800 RMB/ton, an increase of 16.87%; compared with November 1, the average price was raised by 3,130 RMB/ton, an increase of 33.57%.

Raw materials were on the rise, the spot was tight, and the propylene glycol ushered in a "surge”

At the beginning of this month, the domestic industrial-grade propylene glycol market was affected by the sharp decline of the raw material propylene oxide, the price fell slightly, and the market sentiment was not good. Starting from the second week of November, the market trend of raw material propylene oxide rebounded, and propylene glycol continued to increase due to the impact of costs. Until the middle of this week (18th), the domestic industrial-grade propylene glycol ex-factory quotation has been raised sharply again, ranging from 1,000-2,500 RMB/ton. The reason for the surge was, on the one hand, the strong cost support given by the strong rise of the raw material propylene oxide, and on the other hand, the recent increase in foreign trade orders, the shortage of market spot, and the difficulty of finding a single order. The data engineer of SunSirs learned from the industry on the 18th. At present, the supply of propylene glycol in the market basically depended on "grabbing", and there was basically no stocking in the market. As of November 19, the ex-factory price of domestic industrial-grade propylene glycol was referenced to 12,466 RMB/ton. Compared with November 17, the average price was increased by 1,800 RMB/ton, an increase of 16.87%; compared with November 1, the average price was raised by 3,130 RMB/ton, an increase of 33.57%.

On the upstream side, starting this week, the market for propylene oxide, a raw material, rose strongly. According to data from SunSirs’ bulk list, as of November 19, the average price of propylene oxide companies' quotations was 18,033 RMB/ton, an increase of 16.84% compared with last weekend (November 15). At present, the inventory of propylene oxide plants is not under pressure, the inventory of downstream raw materials is low, and the willingness of downstream replenishment is strong, which supports the rise of propylene oxide prices. At present, the mainstream quotation of propylene oxide market in Shandong is around 17,500-19,000 RMB/ton.

Inventory pressure is small, propylene glycol is mainly operating at high levels in the short term

At present, domestic industrial grade propylene glycol is basically under no inventory pressure, raw material support is strong, and fundamentals are performing well, but the hidden dangers brought by the sharp rise cannot be ignored. The downstream may gradually become afraid of high prices, forming a cautious wait-and-see situation. Therefore, the propylene glycol data engineer of SunSirs believes that the propylene glycol market lacks the motivation to continue to rise in the short term, and it mainly keep overall high-level operation stably.

If you have any questions, please feel free to contact SunSirs with support@sunsirs.com.

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