Price trend

The domestic propylene oxide market price rose last week. According to data from the SunSirs monitoring system, as of November 6, the benchmark price of propylene oxide on SunSirs was 7,900 RMB/ton, an increase of 2.6% compared to November 1.

Factors affecting price:

On the raw material side: The propylene market was trending downwards, weakening its support for the propylene oxide market. As of November 6, the benchmark price of propylene from SunSirs was 5,970.75 RMB/ton, a decrease of 1.44% compared to the beginning of the month (6,058.25 RMB/ton).

Supply side: Fluctuations in the supply side led to a temporary tight supply of propylene oxide. Recently, Bohai Chemical's brief reduction in operating rates and shutdowns, coupled with existing order backlogs in the Lianyungang area extending into the late October, had resulted in actual available supply being less than the theoretical supply, offsetting the increased market demand and creating a short-term tight supply situation. This tight supply led to a rise in propylene oxide prices.

On the demand side: Downstream demand for propylene oxide was being forced to follow suit, with a strong sense of caution. New orders were weak, and some companies were experiencing price inversions, further suppressing their purchasing power. Overall, demand-side support for the propylene oxide market was limited. It is expected that the propylene oxide market may stagnate and stabilize in the near future.

Market outlook

According to analysts at SunSirs, the decline in the propylene market had provided weak support for propylene oxide. Downstream demand was also limited, forcing buyers to follow suit, and a cautious wait-and-see attitude prevails. It is expected that the propylene oxide market may stagnate and stabilize in the near future, with greater attention needed to be paid to changes in raw material prices and market supply and demand.

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