Price trend

The domestic propylene oxide market price fluctuated within a narrow range last week. According to the SunSirs monitoring system, as of August 21, the SunSirs benchmark price for propylene oxide was 7,600 RMB/ton, a 4.40% decrease from the beginning of the month.

Price Influencing Factors

Raw Material: Propylene prices fell last week, weakening the cost support for propylene oxide. According to the SunSirs market analysis system, as of August 21, the SunSirs benchmark price for propylene was 6,548.25 RMB/ton, a 1.79% increase from 6,433.25 RMB/ton at the beginning of the month.

On the supply side: It is understood that Shida Shenghua's propylene oxide plant shut down for maintenance at the end of August. Some factories in Shandong were experiencing smooth shipments, with tight inventories, and a positive outlook for the propylene oxide market.

On the demand side, downstream propylene oxide purchases were primarily driven by just-in-time demand, with average new order volume and some acceptable low-priced transactions. Due to poor demand transmission, propylene oxide price growth momentum was insufficient, and propylene oxide market prices are expected to fluctuate within a narrow range in the near term.

Market outlook

SunSirs’ propylene oxide analysts believe that the propylene oxide market was facing tight supply, declining raw material prices, and limited upward momentum due to demand from downstream markets. It is expected that the propylene oxide market may fluctuate within a narrow range in the short term, and more attention should be paid to changes in raw material prices and upstream and downstream supply and demand.

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