SunSirs: Propylene Glycol Rose in a Narrow Range in September Under the Support of Raw Material PO

Price trend

According to the data monitoring of SunSirs, as of September 9, the average ex-factory price of domestic propylene glycol was 8,100 RMB/ton. Compared with September 1, the average price was raised by 300 RMB/ton, an increase of 3.85%.

Under the strong support of raw material PO, propylene glycol started with a rising trend in September 

Entering September, the market for propylene glycol started to rise. Driven by the continuous increase in the raw material propylene oxide, cost pressures have continued to increase. Since last week, the propylene glycol factory offer price has been increased sharply by 400-800 RMB/ton, and the actual transaction price has risen by 200-300 RMB/ton, the reference was around 7,900-8,100 on. The export sector performed well last week. The propylene glycol market was stable and operated until the middle of this week. In the past two days, the pre-replenishment has basically ended. The industry has resisted the high prices, and the demand is mainly for purchasing, and the atmosphere has weakened. On the 9th, the actual transaction of propylene glycol declined slightly, and the market was waiting to see. At present, the mainstream transaction price of propylene glycol in the domestic market is 7,800-8,100 RMB/ton, a slight decrease of 50-100 RMB/ton from last week.

According to customs statistics, in July 2020, China’s total imports of propylene glycol for the month were 10,076.2 tons, and the cumulative imports were 49,339.15 tons. The monthly import value was 9.6196 US dollars million, and the cumulative import value was 44.054 US dollars million. The average import price of the month was 954.7 RMB/ton. , Imports increased by 11.59% month-on-month, imports increased by 4.1% year-on-year, and cumulative imports increased by 25.66% from the same period last year.

According to customs statistics, in July 2020, China’s total export volume of propylene glycol for the month was 10635.9 tons, the cumulative export volume was 77,283.62 tons, the monthly export value was 9.841 million US dollars, the cumulative export value was 79.7791 million US dollars, and the monthly average export price was 925.8 US dollars/ton. , The export volume increased by 13.17% month-on-month, the export volume was reduced by 8.5%, and the cumulative export volume was increased by 15.96% over the same period last year.

On the upstream side, since the beginning of September, the domestic propylene oxide market has continued to rise. The traditional peak season has driven domestic terminal demand to continue to improve. The centralized replenishment of overseas polyethers is still in progress. The overall propylene oxide supply is tight, and the factory inventory is still not pressured, which support manufacturers' attitudes toward the market. As of September 8, the reference price of propylene oxide was 14,466.67 RMB/ton, an increase of 5.85% compared with September 1 (13,666.67 RMB/ton).

Cost support, tight supply, weakened demand, short-term propylene glycol market may be adjusted within a narrow range

It has been heard that some propylene glycol plants in Shandong have a shutdown and maintenance plan recently, so the supply will be reduced, but at the same time the downstream is reluctant to high prices, the demand is general, and the supply and demand are weak, the raw material propylene oxide continues to be high, and the pressure on the cost of propylene glycol does not decrease, the downside space is limited. It is expected that the propylene glycol market will stabilize within a narrow range in the short term.

If you have any questions, please feel free to contact SunSirs with suooort@sunsirs.com.