Price trend
This week, the domestic propylene oxide market showed a slight upward trend. According to the Commodity Market Analysis System of SunSirs, as of February 14th, the benchmark price of SunSirs' propylene oxide was 7,800 RMB/ton, an increase of 0.97% compared to the beginning of this week (7,725 RMB/ton).
Analysis review
Price influencing factors:
Supply side: The supply of propylene oxide has been reduced, and the industry's operating rate was around 75.7%. The 300,000 tons/year HPPO plant of LihuaYi Weiyuan has been temporarily suspended from sale since the 13th due to upstream and downstream influences, which was beneficial for the propylene oxide market.
Raw material side: The propylene market on the raw material side was fluctuating, and the cost side was still under high pressure. According to the market analysis system of SunSirs, as of February 14th, the benchmark price of propylene in SunSirs was 6,878.25 RMB/ton, an increase of 0.81% compared to the beginning of this month (6,823.25 RMB/ton).
Downstream demand side: After the price of propylene oxide hit bottom and rebounded this week, the downstream demand atmosphere has slightly improved, and market trading has rebounded. As some factories gradually resumed production, it is expected that downstream will provide some support to the market in the near future.
Market outlook
SunSirs’ propylene oxide analyst believes that while the supply of propylene oxide in the market was reduced, downstream demand has increased. In addition, due to the temporary suspension of sales by large enterprises, the price of propylene oxide in the market may show a slight upward trend under favorable supply and demand conditions, and more attention should be paid to market news guidance.
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