SunSirs: Inventories Were Low, and Propylene Glycol Ushered in a Rebound (August 5-10)

Price trend

According to the monitoring data of SunSirs, as of August 10, 2022, the average ex-factory price of domestic industrial-grade propylene glycol was 7,700 RMB/ton, compared with the price on August 5, 2022 (the ex-factory reference price of propylene glycol was 7,433 RMB/ton), the price was raised by 267 RMB/ton, or 3.59%.

Analysis review

It can be seen from the data monitoring chart of SunSirs that recently (8.5-8.9), the domestic propylene glycol market ushered in a rebound. On August 5, the propylene glycol market went up and down as a whole, and the overall trend was still down. Boosted by the increase in export orders, the propylene glycol quotations of individual suppliers on the market were raised, but some suppliers' quotations were still profit-cutting. Until August 9, supported by the continuous low inventory of propylene glycol on the market, the supply pressure of the industry has eased, and the propylene glycol market ushered in a rebound. The propylene glycol factories in Shandong raised the ex-factory price of propylene glycol by around 200-400 RMB/ton. The ex-factory price of propylene glycol referred to around 7,600-7,800 RMB/ton, with a single-day increase of more than 3%. The trading atmosphere in the market was acceptable, and the mentality of the industry improved.

On the upstream side of propylene oxide, in the early stage of August (8.1-8.10), the domestic propylene oxide market in Shandong region showed a downward trend as a whole. According to the data monitoring of SunSirs, on August 10, the reference price of propylene oxide was 8,933.33 RMB/ton, a decrease of 0.37% compared with August 1 (8,966.67 RMB/ton).

Market outlook

At present, the low level of inventory supports the mentality of the propylene glycol industry, and the atmosphere in the market has improved. The propylene glycol data engineer of SunSirs believes that in the short term, the domestic propylene glycol market is mainly stable and strong, and the specific trend needs to pay more attention to the basic changes in supply and demand and the follow-up of new orders.

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