SunSirs: The Price of Propylene Oxide Rose First and Then Fell in March (March 1-29)

Price trend

According to monitoring data from SunSirs, as of March 29, the average price of propylene oxide in propylene oxide enterprises was 10,212.50 RMB/ton, a decrease of 1.09% compared to the price on March 1.

Analysis review

In March, the propylene oxide market rose first and then fell. In the first ten days, the price of raw material propylene fluctuated in a narrow range, and the price of raw material liquid chlorine was operating strongly, with limited cost impact. Some units were shut down for maintenance, and the supply side was low and pressureless, supporting the market price increase. The demand side remained on the sidelines to follow up. In mid March, the price of raw material propylene fluctuated and fell, while the price of raw material liquid chlorine rose slightly, with little impact on the cost side. There were many fluctuations in the supply side devices, and the price was lowered under pressure on factory inventory. Downstream buyers followed up cautiously and  mainly on demand. In late March, the price of propylene first fell and then rose, while the price of raw material liquid chlorine fell, and cost support weakened. Supply side devices were mainly stable. The shipment from factories in production was average, the market trading atmosphere was light, and the propylene oxide market was weaker in consolidation. The downstream purchasing sentiment towards the end of the month was average, and the market had a strong cautious wait-and-see sentiment. The factory prices of propylene oxide in some enterprises were adjusted.

According to monitoring data from SunSirs, the reference price of upstream propylene on March 28th was 7,036.60 RMB/ton, a decrease of 6.46% compared to March 1st (7,522.60 RMB/ton).

Market outlook

According to the propylene oxide analyst from SunSirs, as of the 29th, the impact of the cost side was limited, devices at supply side were mainly stable, downstream follow-up was cautious, and market atmosphere was light. It is expected that in the short term, the propylene oxide market may be in weak consolidation and operation, and more attention needs to be paid to market news guidance.

If you have any questions, please feel free to contact SunSirs with support@sunsirs.com.