Price trend

The propylene oxide market showed a "V" trend in February, with prices gradually stabilizing after bottoming out and rebounding. According to the Commodity Market Analysis System of SunSirs , as of February 27th, the benchmark price of SunSirs’ propylene oxide was 8,037.5 RMB/ton, a decrease of 0.77% compared to the beginning of this month (8,100 RMB/ton).

Price influencing factors:

Supply side: The operating rate of the propylene oxide industry was around 75.7%. In early February, after the end of the Spring Festival holiday, propylene oxide manufacturers resumed production, resulting in an increase in supply and pressure on inventory accumulation. The market's willingness to raise prices was insufficient, and the price trend declined; Due to the impact of equipment shutdown and other factors in the later stage, the supply has been reduced, inventory was low, and market prices were gradually rising. As of February 27th, both LihuaYi Weiyuan and Xinyue Group's propylene oxide units were in a shutdown state.

Raw material side: Propylene on the raw material side was affected by changes in supply and demand, mainly consuming inventory, resulting in a weak market price trend. According to the market analysis system of SunSirs , as of February 27th, the benchmark price of propylene in SunSirs  was 6,813.25 RMB/ton, a decrease of 0.15% compared to the beginning of this month (68,23.25 RMB/ton).

Downstream demand side: In early February, some terminals had not yet resumed production, the downstream demand atmosphere was cold, the purchasing mentality was not positive, and the transmission of propylene oxide was not smooth. In a state of strong supply and weak demand, the price of propylene oxide showed a downward trend. The terminal gradually resumed production in the later stage, and the purchasing mentality was positive. In addition, the news of the shutdown of large factories on the supply side brought positive support, and downstream purchasing followed suit, resulting in a rebound in trading atmosphere.

Market outlook

SunSirs’ propylene oxide analyst believes that while the supply of propylene oxide in the market was reduced, downstream demand has increased. In addition, due to the temporary suspension of sales by large enterprises, it is predicted that the propylene oxide market price may show a volatile trend in the later stage, and more attention should be paid to market news guidance.

If you have any enquiries or purchasing needs, please feel free to contact SunSirs with support@sunsirs.com.a