Price trend:

The domestic propylene oxide market experienced an initial increase followed by a decrease in November. According to the monitoring system of SunSirs, as of November 28th, the benchmark price of propylene oxide was 7,933.33 RMB/ton, an increase of 3.03% compared to November 1st.

Factors affecting price:

Raw Materials: In November, the price of propylene, a key raw material, initially rose before falling, while the price of liquid chlorine fluctuated slightly. The price increase in raw materials during the first half of the month provided strong support for propylene oxide prices, which rose steadily. However, towards the end of the month, companies lowered prices to reduce inventory and maintain profitability, leading to a decline in propylene oxide market prices. According to SunSirs monitoring system, as of November 28th, the benchmark price of propylene was 6,193.25 RMB/ton, a 2.23% increase compared to the beginning of the month (6,058.25 RMB/ton).

Supply side: In the first half of the month, Wanhua and Xinyue reduced their propylene oxide production, and Wanhua purchased propylene oxide from external sources, further exacerbating the tight supply situation in the market. The tight supply led to an increase in propylene oxide prices. In the second half of the month, due to the completion of refinery maintenance, the operating rates of plants such as Shandong Jinling increased, easing the tight supply of propylene oxide in the domestic market.

Demand side: In the first half of the month, there was a concentration of new and restarted downstream facilities, coupled with concentrated purchasing by some downstream companies, leading to slightly tight market inventory and an upward trend in propylene oxide prices. However, in the second half of the month, new orders for polyether polyols decreased, and export orders provided insufficient support, resulting in a weak market trading atmosphere and mainly need-based purchasing, causing propylene oxide prices to decline.

Market Forecast:

According to analysts at SunSirs, the propylene market, a key raw material for propylene oxide, was experiencing a price decline, providing weak support for propylene oxide prices. Downstream demand for propylene oxide was also weak due to insufficient new orders, with most purchases being driven by immediate needs. Furthermore, the previously tight supply of propylene oxide had eased.  Companies were showing a strong willingness to sell at lower prices to reduce inventory. Therefore, it is expected that the propylene oxide market will remain weak but stable in the near future, with further developments depending on 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.