SunSirs: Demand Was Insufficient, and Propylene Glycol Fluctuated and Fell in October

Price trend

According to monitoring data from SunSirs, as of October 27, 2023, the market price of domestically produced industrial grade propylene glycol was referenced at 8,166 RMB/ton. Compared with October 1 (reference price of propylene glycol 8,466 RMB/ton), the price was reduced by 300 RMB/ton, a decrease of 3.54%.

Analysis review

In October, the overall domestic propylene glycol market showed a fluctuating and declining trend. In early October, after the end of the National Day holiday, the atmosphere of propylene glycol trading on the market was cold, with weak downstream demand and limited new orders on the market. Insufficient downstream demand also affected the pace of propylene glycol shipments. On the market, shipments were slow, supply was under pressure, and supply and demand contradictions were revealed. Effective support on the market was insufficient, and the propylene glycol market continued to move towards low levels. On October 15th, the domestic propylene glycol market price was around 8,100 RMB/ton, with a decline of 4.33% in the first half of October.

In late October, after the propylene glycol market fell to a low level, some factories did not have a strong willingness to continue reducing prices. The market began to stabilize and seek price support activation. With the phased replenishment of some downstream products, the demand for propylene glycol on the market improved, and the propylene glycol market also saw a slight turnaround. Some propylene glycol factories and suppliers raised the price of propylene glycol narrowly, with an increase of about 100 RMB/ton. However, after downstream demand calmed down, propylene glycol continued to rise weakly, and the wait-and-see sentiment on the market became stronger. The propylene glycol market once again experienced a slight decline and then consolidated. As of October 27th, the domestic market price of propylene glycol was around 7,900-8,200 RMB/ton.

Market outlook

As of October 27th, the overall trading atmosphere on the propylene glycol market was quiet, with average downstream demand and limited new orders. There was still some wait-and-see and worry sentiment on the market. The propylene glycol data analyst from SunSirs believes that in the short term, the domestic propylene glycol market will mainly adjust and operate within a narrow range, and the specific trend needs to pay more attention to changes in supply and demand news.

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