Price trend

According to the Commodity Market Analysis System of SunSirs, as of August 30th, the average enterprises price of propylene oxide was 9,425.00 RMB/ton, a decrease of 1.57% compared to August 1st.

Analysis review

The propylene oxide market slightly declined in August. At the beginning of the month, the cost support was limited, and the supply side shipments were stable. Downstream followed up on a wait-and-see basis, and the market was operating in a consolidated manner. With individual fluctuations and reductions in equipment, factory shipments were good, and the initial inventory pressure had been alleviated. Downstream kept wait-and-see and continued to follow up on purchases, and the supply and demand side supported an increase in the price of propylene oxide. There was some cost support in mid August. Some devices on the supply side were undergoing maintenance, and factory shipments were average. Downstream follow-up had decreased, and some inventory was slightly under pressure. Some companies lowered their prices. In late August, due to partial maintenance of the equipment, the industry's capacity utilization rate had decreased, but the downstream follow-up was limited, and the market was stable and showing weak operation. As the prices of raw materials such as propylene and liquid chlorine rose, cost pressure increased, and prices were stable and narrowly adjusted upward. As the end of the month approached, the cost and demand side were playing a game, resulting in a market deadlock and consolidation.

Upstream propylene, according to the Commodity Market Analysis System of SunSirs, the reference price for propylene on August 29th was 6,888.25 RMB/ton, an increase of 2.61% compared to August 1st (6,713.25 RMB/ton).

Market outlook

According to propylene oxide analysts from SunSirs, as of August 29th, there was some cost support, some units reduced loads and downstream was mainly wait-and-see. With the support of cost and supply, it is expected that the propylene oxide market will be stable and stronger in the short term, and more attention needs to be paid to market news guidance.

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