SunSirs: The Demand Side Was Weak, and the Market Price of Propylene Oxide Has Been Continuously Declining

Price trend

Last week, the market price of propylene oxide continued to decline, reaching its lowest point this year. According to the monitoring and analysis system of SunSirs, as of April 25th, the benchmark price of SunSirs' propylene oxide was 7,150 RMB/ton, a decrease of 10.49% compared to early April.

Price influencing factors:

Supply side: Due to the continuous decline in propylene oxide prices, many propylene oxide production enterprises were in a state of sustained losses, and some enterprises reduced their losses and stopped production. Shandong Wanhua Phase 1 PO/MTBE plant may have a short-term 7-10 day shutdown for maintenance after May Day, the specific details to be determined. The propylene oxide production unit of Zhonghai Fine Chemical's chlorohydrin method was shut down on April 23, and the recovery time is yet to be determined. The satellite chemical HPPO method propylene oxide production unit is scheduled to shut down for maintenance on April 24th, and the recovery time is yet to be determined. Overall, the supply side has weak support for the propylene oxide market.

Raw material side: The market price of raw material propylene has shown a downward trend, which provided weak support for the cost of propylene oxide. According to the market analysis system of SunSirs, as of April 25th, the benchmark price of propylene in SunSirs was 6,710.75 RMB/ton, a decrease of 0.52% compared to the beginning of this month (6,745.75 RMB/ton).

On the demand side, the downstream polyether market's capacity utilization rate has decreased, inventory has accumulated, and most enterprises have experienced a negative load reduction phenomenon. Pre May Day, stocking up on demand was the main focus, and the trading atmosphere was cold. The downstream terminal market was affected by tariff policies, resulting in a significant decrease in export orders and limited procurement of raw materials. Overall, the demand was facing insufficient support from the propylene oxide market, and it is expected that the price of propylene oxide will continue to decline in the later stage.

Market outlook

An propylene oxide analyst from SunSirs believes that the downstream demand side of propylene oxide was weak, and pre holiday stocking was mainly based on demand. The market trading atmosphere was cold, and the demand support was insufficient. It is expected that the propylene oxide market will continue to bottom out in the later stage, and more attention should be paid to changes in raw material prices and downstream supply and demand.

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