Price trend

This week, the propylene oxide market has been operating weakly and steadily. According to the Commodity Market Analysis System of SunSirs, as of March 14th, the benchmark price of SunSirs' propylene oxide was 7,925 RMB/ton, a decrease of 1.25% from the beginning of the month.

Analysis review

Price influencing factors:

Supply side: After the load reduction of LihuaYi equipment, there was temporarily no available quantity for sale, and there was a maintenance plan for Sanyue equipment. As of March 14th, the market inventory has decreased. Enterprises tended to have a strong mentality of supporting prices.

Raw material side: The price of raw material propylene and liquid chlorine fluctuated. In terms of cost, there was still high pressure, and the market price of propylene oxide was mainly high. According to the market analysis system of SunSirs, as of March 13th, the benchmark price of propylene in SunSirs was 6,935.75 RMB/ton, an increase of 1.80% compared to the beginning of this month (6,813.25 RMB/ton).

Downstream demand side: The downstream market was mostly wait-and-see, and the trading atmosphere was average. Due to the expected reduction in raw materials caused by the maintenance of propylene oxide units in some regions, the market's purchasing enthusiasm has increased.

Market outlook

SunSirs’ propylene oxide analyst believes that the maintenance plan for propylene oxide supply side inventory has reduced inventory, coupled with the continuous rise of liquid chlorine on the raw material side, the cost pressure on enterprises still existed, and the main focus was on raising prices. However, due to the reduction in propylene oxide inventory, downstream purchasing enthusiasm may follow suit, and it is expected that the propylene oxide market price will show a stable to stronger trend in the later stage. More attention should be paid to changes in raw material prices.

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