Price trend

In August, the domestic propylene oxide market saw a downward trend followed by an upward trend, with prices declining again near the end of the month. According to the SunSirs monitoring system, as of August 29, the SunSirs benchmark price for propylene oxide was 7,600 RMB/ton, a 4.4% decrease from August 1.

Price Influencing Factors:

Materials: Propylene prices fluctuated in August, providing limited support for propylene oxide costs and not significantly pressuring them. According to the SunSirs market analysis system, as of August 28, 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: In the first half of the month, due to the resumption of production at Qixiang Tengda's 300,000 ton/year plant, market supply increased to around 19,000 tons, with spot trading volume increasing to 11,500 tons. Meanwhile, end-user demand weakened, with downstream companies primarily focusing on fulfilling earlier orders, causing prices to fall from their highs. At the end of August, Shida Shenghua's propylene oxide plant was shut down for maintenance. Some factories in Shandong were experiencing smooth shipments, but inventories were tight, and the propylene oxide market was optimistic about rising prices.

On the demand side: In early August, downstream demand for propylene oxide was insufficient, with many downstream suppliers still digesting previous orders and waning purchasing enthusiasm. In late August, a temporary surge in inventory replenishment in downstream industries like polyether and propylene glycol supported a price rebound. However, toward the end of the month, market demand weakened, leading to a decline in propylene oxide prices.

Market outlook

SunSirs' propylene oxide analysts believe that the propylene oxide market was well supplied, with limited support from raw material prices, weak downstream demand, and a weakening trading atmosphere. It is expected that the center of the propylene oxide market will decline in the later period, and more attention should be paid to raw material prices and changes in downstream supply and demand.

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