Price trend

The domestic propylene oxide market experienced a volatile downward trend last week. According to the SunSirs monitoring system, as of August 8, the SunSirs’benchmark price for propylene oxide was 7,633.33 RMB/ton, a decrease of 3.98% compared to the beginning of the month.

Price Influencing Factors:

Raw Material: The price of raw material propylene increased last week. According to the SunSirs' market analysis system, as of August 8, the SunSirs benchmark price of propylene was 6,450.75 RMB/ton, a 0.27% increase from 6,433.25 RMB/ton at the beginning of the month.

On the supply side: On August 4th, Qixiang Tengda completed all overhauls and technical upgrades at its 300,000 ton/year propylene oxide unit and gradually resumed normal production. It is understood that Qixiang Tengda will sell all of its propylene oxide to external suppliers. Market supply had significantly increased, expected to reach around 19,000 tons. Overall, the propylene oxide supply appeared to be easing, increasing industry competitiveness and leading to a significant price decline.

On the demand side: Downstream propylene oxide trading was generally weak, with purchasing activity relatively subdued, primarily consuming previous orders. Overall, the demand for propylene oxide market is weak, and the market may mainly consolidate in the later period.

Market outlook

SunSirs’ propylene oxide analysts believe that the concentrated release of propylene oxide market capacity has led to a relatively loose supply, a slight increase in raw material prices, and a general trading atmosphere due to strong downstream demand. They predict that the propylene oxide market will likely consolidate in the short term, with more attention paid to raw material prices and changes in upstream and downstream supply and demand.

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