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SunSirs: Supported by Both Supply and Demand, Propylene Glycol Rose 9.34% in Early July

July 19 2021 15:01:01     SunSirs (John)

Price trend

According to the monitoring data of SunSirs, as of July 16, the ex-factory price of domestic industrial-grade propylene glycol referred to 17,566 RMB/ton. Compared with July 1, the average price was increased by 1,500 RMB/ton, an increase of 9.34%.

Analysis review

Since the beginning of July, the domestic propylene glycol market has risen overall. The main reasons for the sharp increase in the market price of propylene glycol come from the following two aspects:

In terms of supply, at the beginning of July, factories in Shaanxi and Shandong were shut down for maintenance. The spot supply of propylene glycol on the market decreased. With low inventories, the atmosphere of propylene glycol transactions rose rapidly. As a result, the market price of propylene glycol ushered in a sharp rise.

In terms of demand, after the decrease in market supply, the downstream fear of rising sentiment continued to increase, downstream was actively acquiring goods, and the demand for propylene glycol increased. Supported by both supply and demand, the domestic propylene glycol market price continued to rise. As of the 16th, the average price of propylene glycol rose to 17,566 RMB/ton. Compared with the beginning of July, the average price rose by 1,500 RMB/ton, and the overall increase in early July was 9.34%.

In terms of upstream propylene oxide, entering July, propylene oxide continued its upward trend in late June and rose slowly. Beginning on the 5th, propylene oxide manufacturers had no pressure, downstream polyether orders increased steadily, the market rose in prices, downstream users on-demand followed up steadily, and the market went up without pressure. The current market supply is tight, downstream follow-up performance is positive, and the market continues to rise. As of July 16, the reference price of propylene oxide was 17,700 RMB/ton, an increase of 18.79% compared with July 1 (14,900.00 RMB/ton).

Market outlook

At present, the maintenance of the propylene glycol plant is gradually ending, and the supply side is gradually returning to normal. Under the high price, the downstream demand will continue to be rigid. The trading atmosphere on the market may weaken. However, in terms of cost, the price of raw material propylene oxide has risen sharply recently, which give strong cost support for propylene glycol. Therefore, the propylene glycol analyst of SunSirs believes that in the short term, the domestic propylene glycol market will mostly consolidate at a high level.

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