SunSirs: During the Off-season of Demand in December, the Market Price of Propylene Oxide Hit Bottom

Price trend

In the off-season of December demand, the market price of propylene oxide hit bottom. According to the Commodity Market Analysis System of SunSirs, as of December 20th, the benchmark price of SunSirs' propylene oxide was 8,370 RMB/ton, a decrease of 1.85% compared to the beginning of this month.

Analysis review

Price influencing factors:

Supply side: In December, most factories planned to resume production of maintenance equipment. In early December, Jiangsu Yida's equipment operated normally, but actual external sales were limited. Satellite and Ruiheng produced and shipped at low negative levels until the 18th, with actual release quantities mostly released in the middle and late stages. Binhua New Materials planned to start production from the end of December to the beginning of January, while Wanhua Phase 4 planned to start production by the end of December. As of December 20th, there was insufficient price support on the supply side.

Raw material side: The rise and fall of liquid chloropropene on the raw material side varied. As of December 20th, the factory price of mainstream liquid chlorine tank trucks in Shandong Province was 150-200 RMB/ton. According to the market analysis system of SunSirs, as of December 19th, the benchmark price of propylene in SunSirs was 6,895.75 RMB/ton, an increase of 0.73% compared to the beginning of this month (6,845.75 RMB/ton).

Downstream demand side: The downstream demand side was relatively cold, with insufficient follow-up on procurement, cold actual market transactions, and mainly focused on first-time purchases, adopting a cautious and wait-and-see attitude. Jiangsu Changhua and Nanjing Hongbaoli both planned to stop for maintenance in the near future, resulting in a decrease in external purchases. Propylene glycol Shida Shenghua and Zhejiang Railway Dafeng will stop for maintenance and gradually resume at the end of the month. Overall, the market demand was off-season, and the demand for propylene oxide was relatively weak.

Market outlook

SunSirs’ propylene oxide analyst believes that due to the impact of the off-season, downstream demand side parking and maintenance, weakened procurement volume, and the gradual closure of enterprises towards the end of the year, 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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