SunSirs: Insufficient Positive News, Resulting in a Stalemate in the Propylene Glycol Market

Price trend

According to monitoring data from SunSirs, as of November 14, 2023, the market price of domestically produced industrial grade propylene glycol is referenced at 8,100 RMB/ton, which is basically unchanged compared to early November. Compared with October 1 (propylene glycol reference price 8,466 RMB/ton), the price is reduced by 366 RMB/ton, a decrease of 4.33%.

Analysis review

Entering November, the domestic propylene glycol market price has been hovering at a low level, resulting in a stalemate in supply and demand, and limited price fluctuations in the propylene glycol market. In terms of demand, currently, downstream demand for propylene glycol continues to be weak, and it is difficult for the demand side to bring significant benefits to the market. Enquiries for propylene glycol on the market are light, and new orders are limited. In terms of cost, the raw material epoxy propane market is weak, and the support for propylene glycol on the cost side is weak. In terms of supply, currently, due to insufficient follow-up of downstream demand, some devices in the propylene glycol field have delayed start-up and are still in a shutdown and maintenance state. However, the overall supply in the field is still slightly sufficient, and some factories have tight spot inventory. Therefore, the willingness to continue reducing production is not strong. In addition, the propylene glycol market is currently at a low level, and factories mainly maintain stable quotations. As of November 14th, the domestic market price of propylene glycol is based on around 7,900-8,100 RMB/ton, while the higher price is based on around 8,300 RMB/ton.

Market outlook

As of November 14th, the dimethyl carbonate market, which is co produced with propylene glycol, is also operating at a weak and low level. The comprehensive profit of propylene glycol is constantly decreasing, and the market is in a wait-and-see mood. The overall shipment of unsaturated resin factories downstream of the terminal is slow, and the transmission of propylene glycol to the terminal is slow. Currently, there are many bearish factors for propylene glycol, but due to the constraints of comprehensive profit, there is limited room for further downward adjustment of the market situation. According to propylene glycol data analysts from SunSirs, in the short term, the domestic propylene glycol market will mostly adjusted to be weaker, and more attention needs to be paid to changes in cost and supply and demand information.

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