SunSirs: Supply Was Tight, Propylene Glycol Market Welcomed a Rational Increase
November 11 2020 13:27:27     SunSirs (John)According to the monitoring data of SunSirs, as of November 10, the ex-factory price of domestic industrial-grade propylene glycol refers to around 9,466 RMB/ton. Compared with November 8, the average price increased by 366 RMB/ton, an increase of 4.03%; compared with November 1, the average price increased by 133 RMB/ton, an increase of 1.43%.
Supply was tight, manufacturers rationally called back the propylene glycol factory price
After the domestic industrial-grade propylene glycol market has continued its weakness and decline for several days, there is a strong desire to rise. Starting last weekend, the propylene glycol industry has already expected price adjustments. Entering this week, the decline of the raw material propylene oxide has stopped, and there is support for the cost of propylene glycol. In addition, the current supply of propylene glycol in the market is tight, the inventory is low, and the pressure on the supply side is relatively small. The factory is reluctant to sell. On the 9th and 10th, the factory's propylene glycol offer prices continued to rise. The downstream side mostly continued to purchase just-needed, so this round of price correction is relatively rational, and the correction range is around 200-600 RMB/ton.
On the upstream side, in the past two days, the domestic propylene oxide market has stopped falling and is expected to have a strong trend. The factories in some regions have raised the price of propylene oxide by around 200-400 RMB/ton. The current trend of the market has picked up. According to the data from SunSirs’ bulk list, as of November 10, the mainstream quotes in the propylene oxide market were around 14,500-15,000 RMB/ton.
Internationally, on Monday (November 9), WTI's December 2020 futures increased by 3.15 US dollars per barrel to 40.29 US dollars per barrel, and Brent's January 2021 futures at 42.40 US dollars per barrel, rose by 2.95 US dollars per barrel China's SC crude oil futures main contract 2101 fell 0.2 RMB/barrel to 243.2 RMB/barrel..
Under just demand, the propylene glycol market will fluctuate within a narrow range
At present, the raw material support of the propylene glycol market may gradually improve. However, under the just-needed purchases, the industry's continued high offers may increase the downstream wait-and-see sentiment and form resistance to high prices. Therefore, the propylene glycol data analyst of SunSirs believes that the propylene glycol market will have limited upside in the short term , The market will mostly oscillate within a narrow range.
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