Price trend

Last week, domestic propylene oxide market prices initially rose before stabilizing. According to data from the SunSirs monitoring system, as of April 10, the SunSirs benchmark price for propylene oxide stood at 13,300 RMB/ton—an increase of 8.13% compared to April 1.

Market analysis

Raw Materials: Recently, the cost side has witnessed propylene prices surging before retreating, while the liquid chlorine market has maintained a weak yet stable trend. As geopolitical tensions showed signs of easing and energy futures plummeted, the propylene market shifted from an upward trajectory to a decline. According to data from the SunSirs monitoring system, as of April 10, the SunSirs benchmark price for propylene stood at 9,324.33 RMB/ton—an increase of 6.15% compared to the beginning of the month (8,784.33 RMB/ton).

Supply Side: In April, the schedule for maintenance turnarounds at propylene oxide (PO) facilities was intensive; numerous major enterprises either reduced operating loads or completely shut down, resulting in a significant decline in the industry's overall operating rate. Some companies continued to suspend sales. Wanhua Chemical's PO facility operated at reduced output, while Shida Shenghua's facility remained in a shutdown state. Although facilities such as Jinling and Sanyue have resumed normal operations following earlier brief reductions in output, the overall industry operating rate remains at a relatively low level.

On the demand side: As propylene oxide prices have risen rapidly, downstream enterprises have demonstrated significant resistance to the high cost of raw materials. Market negotiations have reached a stalemate, and the intake of new orders remains limited, consisting mostly of small-volume purchases driven by immediate necessities; consequently, some traders are facing increased pressure to offload inventory. Overall, support from the downstream demand sector has weakened, and a cautious, wait-and-see sentiment prevails throughout the market. Propylene oxide prices continue to hold firm at elevated levels.

Market Outlook

Analysts at SunSirs covering propylene oxide (PO) observe that, on the feedstock side, propylene prices have surged before retreating, while the liquid chlorine market remains weak but stable. Furthermore, low operating rates at production facilities—coupled with sales suspensions by certain enterprises—have exacerbated tight spot market conditions, ensuring that cost-side support remains firm and elevated. However, downstream sectors demonstrate limited tolerance for high raw material prices and show little inclination to chase rising costs; consequently, the volume of new orders remains limited. It is anticipated that the domestic PO market will undergo a period of consolidation in the near term, trending slightly upward within a generally stable framework. Future market movements will largely depend on changes in raw material prices and the evolving dynamics of market supply and demand.

SunSirs has been continuously tracking price data for over 200 commodities for nearly 20 years, please contact support@sunsirs.com for subscription.