Price trend

According to the Commodity Market Analysis System of SunSirs, as of November 18th, the benchmark price of SunSirs' propylene oxide was 8,555 RMB/ton, a decrease of 1.33% compared to the beginning of this month (8,670 RMB/ton).

Price influencing factors:

Supply side: Lianyungang major factory released maintenance news, market atmosphere was tense. In late October, Satellite Chemical released the news of a shutdown at the end of October, with a production capacity of 400,000 tons per year. In addition, Shangnong Ruiheng's 400,000 tons per year propylene oxide plant maintained low load operation. At the same time, after the start-up of Shandong Jinling, the load increased slowly, and there was no inventory while limited sales. The market supply was tight, and the price of propylene oxide rose sharply at the beginning of the month.

Raw material side: The prices of raw materials propylene and liquid chlorine have fluctuated. Although the manufacturer has sufficient inventory, downstream demand was weak, and the company reduced profits by selling at low prices, resulting in a decrease in actual trading volume. According to the market analysis system of SunSirs, as of November 15th, the benchmark price of propylene in SunSirs was 6,770.75 RMB/ton, a decrease of 0.22% compared to the beginning of this month (6,785.75 RMB/ton).

Downstream demand side: The downstream demand for polyether polyols was relatively short, with weak sustainability, and export orders were still acceptable. According to customs data statistics from January to September 2024 and market research in October, the total export volume of polyether polyols in 2024 was significantly higher than that in 2023. Overall, downstream new orders were mainly for urgent procurement, with smooth factory scheduling and no pressure on shipments.

Market outlook

An propylene oxide analyst from SunSirs believes that although there was some support for raw material prices, the downstream had a strong wait-and-see attitude, mainly focusing on on-demand procurement, and the transmission of supply and demand iwas not smooth, resulting in mixed ups and downs of propylene oxide. It is expected that the short-term propylene oxide market will be mainly volatile, and more attention should be paid to market information guidance.

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