SunSirs: The Market Price of Propylene Oxide Showed a Trend of Stability with Slight Gains Last Week (June 8-12)

Price Trends

Last week, the market price of propylene oxide showed a trend of steady, slight increases. According to the SunSirs monitoring system, the benchmark price of propylene oxide stood at 9,200 RMB/ton as of June 12, marking a 3.37% rise compared to June 1.

Market analysis

On the feedstock side, the propylene market saw narrow fluctuations last week, with cost factors providing a floor for propylene oxide prices. Data from the SunSirs monitoring system indicates that as of June 12, the benchmark price for propylene stood at 8,841.00 RMB/ton, a decline of 3.21% compared to the beginning of the month (9,134.33 RMB/ton).

Supply side: The supply side is the core driver behind the market's stabilization and rebound during this cycle. In early June, the price of propylene oxide briefly fell below the key psychological support level of 9,000 RMB/ton, touching a low of 8,800 RMB/ton. Subsequently, the Zhenhai Phase I and Shenghong units remained shut down, Qixiang planned to reduce operating rates and halt production, and Zhejiang Petrochemical and Sanyue maintained low operating rates; last week, the industry's capacity utilization rate stood at approximately 59.58%, having briefly dipped to 58.23%. With Wanhua's Phase IV unit gradually restarting production from June 11, the bullish impact of supply-side maintenance is beginning to wane.

Demand side: June marks the traditional off-season for demand. The operating rate of the polyether polyol industry—the largest downstream sector—stands at only about 52.56%; end-user destocking cycles have extended, and the follow-through on new orders is sluggish. Polyether manufacturers are showing significant resistance to high-priced raw materials, shifting their procurement strategy from bulk stockpiling to small-volume, on-demand replenishment.

Market outlook

Analysts at SunSirs believe that in the short term, prices are likely to maintain a trend of steady, modest gains, supported by low corporate inventories and ongoing maintenance activities; however, the upside remains limited, with the mainstream trading range for spot goods in Shandong estimated at 9,000-9,500 RMB/ton. Future price trends will depend largely on changes in operating rates and the recovery of downstream orders.

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