SunSirs: The Propylene Oxide Market Fluctuated and Slightly Declined in June

Price trend

According to the Commodity Market Analysis System of SunSirs, as of June 29th, the average price of propylene oxide from enterprises was 9,600.00 RMB/ton, a decrease of 2.29% compared to June 1st.

Analysis review

The propylene oxide market fluctuated and fell in June. In the first half of the month, the raw material propylene market fluctuated and fell, with average cost support. At the beginning of the month, the supply end devices fluctuated and consolidated, and the factory pressure was mostly controllable. Downstream follow-up on demand was moderate, while the supply in the north was relatively abundant, while the spot in the south was slightly tight. The market was stagnant and weaker, and the supply end maintenance devices in East China were delayed and started, and factory shipments rebounded. Downstream followed and restocked after waiting and seeing. The market atmosphere improved, and some enterprise prices increased. With the increase of supply in East China, factory shipments generally weakened, and the market situation was showing signs of weakness. In the second half of the month, the supply side devices were mainly stable, and downstream procurement was cautious. They were wait-and-see and followed up with a reduction, and the market was weaker. As prices fell, downstream companies continued to follow up, increasing factory shipments and easing inventory pressure. The market was stable and stronger, with some inventory under pressure after the holiday. The market weakened again, and towards the end of the month, there was a small amount of rigid downstream, and the market was stagnant and consolidating.

Upstream propylene, according to the Commodity Market Analysis System of SunSirs, the domestic propylene (Shandong) market fell first and then rose in June, with a slight overall increase. At the beginning of June, the market average was 6,460 RMB/ton, and on June 29th, the average price was 6,513 RMB/ton, with a monthly increase of 0.43%.

Market outlook

According to propylene oxide analysts from SunSirs, as of the 29th, cost support was still acceptable and factory shipments were stable. However, the demand side was average and there was a strong wait-and-see atmosphere. It is expected that the propylene oxide market may become stagnant in the short term, and more attention needs to be paid to market news guidance.

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