SunSirs: New Orders Were Limited, and the Propylene Glycol Market Was Weak and Stable

Price trend

According to monitoring data from SunSirs, as of November 8, 2023, the market price of domestically produced industrial grade propylene glycol was referenced at 8,100 RMB/ton, which was basically unchanged compared to early November. Compared to October 1 (propylene glycol reference price 8,466 RMB/ton), the price was reduced by 366 RMB/ton, a decrease of 4.33%.

Analysis review

Looking back on October, the domestic propylene glycol market can be described as "not yet in the silver October, but encountering a cold winter". In October, the propylene glycol market continued to move towards low levels amidst fluctuations. Entering November, the market situation has reached a low point in the early stage, and the profit of propylene glycol has been continuously narrowing. Therefore, although the current demand is still average, some propylene glycol manufacturers and suppliers are not willing to continue to lower prices, and have a strong desire for stability and growth. However, without obvious positive support, the market is difficult to rise, and the overall market has entered a stage of weak stability and consolidation. As of November 8th, the domestic propylene glycol market price had entered the range of 7,900-8,300 RMB/ton.

A brief analysis of the current supply and demand situation of propylene glycol:

On the supply side: Currently, there are devices in the propylene glycol field that are still undergoing maintenance, but due to weak demand, the overall supply of propylene glycol is still relatively loose, and the pace of shipment is slow, resulting in a stalemate in supply and demand transmission.

In terms of demand: Currently, downstream demand for propylene glycol is showing signs of looseness, with limited support from the demand side to the market. New inquiries on the market have followed up coldly, while downstream orders are mainly bought and used, resulting in a strong wait-and-see sentiment.

Market outlook

At present, the overall trading atmosphere in the domestic propylene glycol market is light. Although the slight rebound in the raw material side has provided a slight boost to the cost support of propylene glycol, the demand side has always constrained the market, and there is still some bearish sentiment on the market. The propylene glycol data analyst of SunSirs believes that in the short term, the domestic propylene glycol market will mainly adjust and operate in a narrow range, and more attention needs to be paid to the changes in news on the supply and demand side.

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