Price trend

Last week, the domestic propylene oxide market rebounded slightly. According to the monitoring system of SunSirs, as of June 13th, the benchmark price of SunSirs's propylene oxide was 7,250 RMB/ton, a decrease of 1.27% compared to the beginning of the month.

Price influencing factors:

Raw material side: The market price of raw material propylene slightly decreased, and there was insufficient support on the cost side. According to the market analysis system of SunSirs, as of June 12th, the benchmark price of propylene in SunSirs was 6,513.25 RMB/ton, a decrease of 0.38% compared to the beginning of this month (6,538.25 RMB/ton).

Supply side: This week, Shandong Xinyue and Huatai equipment experienced load reduced fluctuations, resulting in a slight decrease in market supply and a slight rebound in propylene oxide prices. As of June 11th, the daily production of propylene oxide in China reached 14,600 tons, with a capacity utilization rate of 62.71%, a narrow decrease of 1.54 percentage points compared to May 31st. Next week, Shenghong Petrochemical is expected to sell and ship normally, and Wanhua Phase III plant will restart in the late June, with market expectations of incremental growth. It is expected that the supply of propylene oxide will increase in the later stage.

Demand side: The trading atmosphere in the downstream market of propylene oxide improved, and new orders were passively following up. Downstream demand for polyether was not fluctuating significantly, with rigid procurement being the main focus and some incremental procurement. The demand for propylene glycol was generally followed up, but some factories may resume production in the later stage, and there may be an increase in demand. Overall, there was still some support from the demand side for the propylene oxide market, and the market may experience narrow consolidation in the later stage.

Market outlook

SunSirs’ propylene oxide analyst believes that the supply of propylene oxide was tight, market prices slightly increased, downstream demand passively followed up, new orders had increased to a certain extent, and the trading atmosphere had improved. It is expected that the propylene oxide market will mainly experience narrow consolidation in the later stage, and more attention should be paid to changes in raw material prices and downstream supply and demand.

If you have any enquiries or purchasing needs, please feel free to contact SunSirs with support@sunsirs.com.