Price trend

According to the Commodity Market Analysis System of SunSirs, as of January 20th, the benchmark price of SunSirs' propylene oxide was 8,075.00 RMB/ton, a decrease of 3.00% compared to the beginning of this month (8,325.00 RMB/ton). In early January 2025, the price of propylene oxide was relatively high, but subsequently, due to the impact of increased production capacity and the willingness of manufacturers to quickly release inventory, the price began to decline. The second half of the month was mainly characterized by price fluctuations and consolidation.

Analysis review

Price influencing factors:

Supply side: Due to the planned resumption of production for most factory maintenance facilities in December, Binhua and Wanhua have also started production one after another. The market supply has increased.

Raw material side: The rise and fall of liquid chlorine and propylene on the raw material side varied. According to the market analysis system of SunSirs, as of January 20th, the benchmark price of propylene in SunSirs was 7,008.25 RMB/ton, an increase of 2.52% compared to the beginning of this month (6,835.75 RMB/ton).

Downstream demand side: As the Spring Festival approaching, downstream enterprises have seen a certain increase in orders in the early stages. However, recent new orders have shown average performance, with insufficient follow-up on procurement and sluggish actual market transactions. Overall, during the off-season of market demand, the demand for e propylene oxide was relatively weak.

Market outlook

SunSirs’ propylene oxide analyst believes that with the restart and recovery of enterprise equipment, propylene oxide production has increased. Downstream demand side procurement was cautious and lacked follow-up, and there was a strong wait-and-see mentality. In addition, as the Spring Festival approaching, enterprises were gradually taking holidays and market closures. It is expected that the propylene oxide market will mainly experience fluctuations and consolidation, and more attention should be paid to market news guidance.

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