Price trend

Last week (July 14-17), the domestic propylene oxide market trend declined. According to the monitoring system of SunSirs, as of July 17th, the benchmark price of SunSirs' propylene oxide was 7,343.33 RMB/ton, an increase of 0.23% compared to July 1st.

Price influencing factors:

Raw material side: The market prices of raw materials propylene and liquid chlorine declined, providing weak support for the price of propylene oxide. According to the market analysis system of SunSirs, as of July 16th, the benchmark price of propylene in SunSirs was 6,500.75 RMB/ton, a decrease of 3.27% compared to the beginning of this month (6,720.75 RMB/ton).

Supply side: In 2025, there was an increase in production capacity and supply, such as the construction of 270,000 tons/year of propylene oxide by PetroChina Guangxi Petrochemical (put into operation at the end of June 2025), and the addition of 300,000 tons/year of propylene oxide by Huayi Qinzhou Chemical New Materials (put into trial operation in 2026). The expansion of production capacity intensifies market competition, and the pattern of loose market supply was difficult to change.

On the demand side: downstream of propylene oxide replenishment was on demand, and the market trading atmosphere was relatively quiet. Affected by tariff policies, downstream terminal markets had limited procurement of raw materials. Overall, the demand was facing limited support from the propylene oxide market, and the market may mainly operate weakly and steadily in the later stage.

Market outlook

SunSirs' propylene oxide analyst believes that the supply side of propylene oxide was relatively loose, with insufficient support for raw material prices. In addition, downstream demand was weak, and there was a replenishment on demand, resulting in poor market trading. It is expected that the propylene oxide market will mainly operate weakly and steadily in the later stage, and more attention should be paid to changes in raw material prices and downstream supply and demand.

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