Price trend
The domestic propylene oxide market price remained stable last week. According to the SunSirs monitoring system, as of August 14, the SunSirs benchmark price for propylene oxide was 7,633.33 RMB/ton, a 6.5% decrease from the beginning of the month.
Price Influencing Factors:
Raw Material: Last week's decline in propylene prices reduced propylene oxide production costs, weakening price support and exacerbating downward price pressure. Propylene oxide market prices are expected to fluctuate and remain weaker in the coming period. According to the SunSirs’market analysis system, as of August 14th, the SunSirs benchmark propylene price was 6,633.25 RMB/ton, a 3.11% increase from 6,433.25 RMB/ton at the beginning of the month.
On the supply side: On August 4th, Qixiang Tengda's 300,000 tons/year propylene oxide unit completed all overhaul and technical upgrades and gradually resumed normal production. It is understood that Qixiang Tengda will sell all of its propylene oxide to external suppliers. Market supply increased significantly, expected to reach around 19,000 tons. Overall, the propylene oxide supply situation appears to be easing, increasing industry competitiveness. Propylene oxide prices are expected to consolidate in the near term.
On the demand side, the downstream of propylene oxide market was generally trading in a general environment, with purchasing activity relatively subdued, primarily focused on consuming previous orders. Overall, demand for propylene oxide is weak, and the market is likely to consolidate in the future.
Market outlook
SunSirs’ propylene oxide analysts believe that the concentrated release of propylene oxide market capacity led to a relatively loose supply, a decline 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.
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