SunSirs: Propylene Oxide Market Fell in December

Price trend

According to the monitoring data of SunSirs, as of December 30, the average enterprises price of propylene oxide was 11,100.00 RMB/ton, which was 23.97% lower than that on December 1, and down by 35.96% in a three-month cycle.

Analysis review

The propylene oxide market fell sharply in December. In the first ten days, the price of raw material propylene first fell and then rose. The impact from the cost side was not significant. Factory inventory was low, supporting prices; demand side performance was deserted, mostly in a cautious wait-and-see state, the market was stalemate. In mid-December, the raw material propylene was running weakly, cost support weakened, factory inventories slowly increased, downstream demand was deserted, and bearish sentiment was strong. With the decline in prices, factory shipments had improved and inventory had gradually been digested, but downstream follow-up was more general, the market continued to wait and see, and the market atmosphere was flat. In late December, downstream purchases were reduced, factory inventories were under pressure, and the propylene oxide market was steadily lowered. As the price of raw material propylene rose, cost support was gradually strengthened, downstream procurement increased, and factory shipments improved in a short period of time, but the terminal was mostly cautious to wait and see. On the 30th, the factory inventory was under pressure, and the price dropped again. On the 30th, the mainstream market quotation of the propylene oxide in Shandong was around 10,650-10,800 RMB/ton.

Upstream propylene, on December 29, the reference price of propylene was 7,544.60 RMB/ton, a decrease of 0.01% compared with the price on December 1 (7,545.50 RMB/ton). On the 29th, the trend of propylene (Shandong) was stable, and individual companies adjusted slightly. The mainstream price of propylene in Shandong was 7,550-7,600 RMB/ton. Crude oil fluctuated upwards, under the boost of cost, the price of propylene increased from last week. However, the mainstream downstream polypropylene has been trading sideways recently, and it is difficult to significantly increase the purchase of propylene.

Downstream propylene glycol, on December 29, the reference price of propylene glycol was 16,833.33 RMB/ton, which was a 6.13% drop compared with the price on December 1 (17,933.33 RMB/ton).

Market outlook

The propylene oxide analyst of SunSirs believes that the current price of raw material propylene is mainly stable, and there is certain support from cost. Factory inventory is under pressure, the market atmosphere is weak, and the sentiment of cautious wait-and-see is strong. It is expected that in the short term, the propylene oxide market may be weakly consolidated, and more attention needs to be paid to market news guidance.

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