SunSirs: The Domestic Propylene Oxide Market Experienced an Initial Rise Followed by consolidation in October

Price trend

The domestic propylene oxide market experienced an initial rise followed by consolidation in October. According to data from the SunSirs monitoring system, as of October 31, the benchmark price for propylene oxide was 7,700 RMB/ton, a decrease of 0.86% compared to October 1.

Factors affecting price:

On the raw material side: While propylene prices declined somewhat in October, a sharp rebound in liquid chlorine prices increased the cost of the chlorohydrin process, putting significant pressure on producers' losses and weakening their willingness to supply at low prices. This led to a rise in propylene oxide prices in the first half of the month. According to data from the SunSirs monitoring system, as of October 31, the SunSirs benchmark price for propylene was 6,095.75 RMB/ton, a decrease of 6.84% compared to the beginning of the month (6,543.25 RMB/ton).

On the supply side: In the first half of the month, major refineries such as LihuaYi underwent maintenance, reducing spot market circulation and causing a significant increase in propylene oxide prices. In the second half of the month, as refinery maintenance decreased and previously shut-down plants gradually resumed production, domestic propylene oxide supply increased. Propylene oxide prices declined somewhat in the second half of the month.

On the demand side: Downstream demand was weak in October, with polyether manufacturers mostly maintaining just-in-time purchases and adopting a wait-and-see attitude. Demand provided limited support to the propylene oxide market. Demand was relatively concentrated in the first half of the month, but order volume decreased in the second half, and the trading atmosphere was sluggish. Overall, demand support for propylene oxide weakened, and the propylene oxide market is expected to consolidate in the near future.

Market Forecast:

According to analysts at SunSirs, the decline in propylene prices had weakened support for propylene oxide. Downstream demand remained sluggish, with purchases primarily driven by immediate needs and a wait-and-see attitude prevailing. Furthermore, the restart of the Lihuayi plant has increased market supply. It is expected that the propylene oxide market will mainly consolidate in the near future, with close attention focused on raw material prices and changes in market supply and demand.

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