Price trend

Last week, as major plants that had undergone maintenance were gradually restarted, the overall operating rate of the industry increased, leading to a rise in market supply and a significant price correction in the domestic propylene oxide market. According to data from SunSirs monitoring system, as of February 6th, the benchmark price for propylene oxide was 7,800 RMB/ton, a decrease of 4.88% compared to February 1st.

Market Analysis

On the raw material side: The price of propylene, a raw material, had risen slightly, providing reasonable cost support for propylene oxide. According to data from SunSirs monitoring system, as of February 6, SunSirs benchmark price for propylene was 6,437.67 RMB/ton, an increase of 0.52% compared to the beginning of the month (6,404.33 RMB/ton).

Supply side: Previous maintenance shutdowns had ended, and new capacity had been released. Last week, major plants that underwent maintenance in the previous period (such as some plants in East China) gradually restarted, increasing the overall operating rate of the industry and boosting market supply. In addition, the new capacity from companies such as Binhua and Wanhua, which underwent maintenance in December, was gradually released in January, further increasing market supply.

On the demand side: Downstream polyether companies' concentrated stockpiling for the Spring Festival and the policy window period (before the cancellation of export tax rebates) basically ended in mid-to-late January, with insufficient new orders following up. In addition, with the Spring Festival approaching, the purchasing enthusiasm of downstream companies declined, the market trading atmosphere was sluggish, and the demand side performed weakly.

Market outlook

According to analysts at SunSirs, the recovery in supply coupled with the off-season for demand had shifted the market from tight to loose, leading to a rapid decline in prices. Propylene oxide prices are expected to remain weak and stable in the short term. Closer attention should be paid to raw material prices and changes in market supply and demand.

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