Propylene oxide terminal demand is weak, mainly after finishing up

Last week, the domestic propylene oxide market had a roller coaster market, rising rapidly and falling fast, keeping up with the pace of raw material propylene. The price of propylene reached the bottom this week. The price of cyclopropylene quickly fell back and faced cost pressure again. The offer stopped falling and rose slightly. The wait-and-see atmosphere is relatively strong. At the close, mainstream propylene oxide negotiations in North China and Shandong markets were at 7450-7600 CNY/ton. The cost of propylene reached the bottom. Liquid chlorine rose slightly. Under cost pressure, Jinlianchuang predicts that after a short-term market rise Organize mainly.

On the supply side, there was little change in factory equipment this week. Jinling continued to operate at 50% load, Binhua continued to operate at 50% load, Xinyue continued to operate at 70% load, and Shida and Daze continued to operate. Large, prices fell to a relatively low 7400 CNY/ton on Friday, some downstream bargain-hunting, after the release of pressure on the main factory inventory, the market rose slightly.

In terms of raw materials, last week's broad decline, the Shandong market stopped stabilizing on Sunday, and the low level at the beginning of the week rose slightly to 5850-5950 CNY/ton. Propylene continued to decline, and some of the downstream profit situation improved slightly. The enthusiasm for replenishment on bargain-hunting picked up, the refinery shipments improved, inventory pressure eased, and the price-fixing mentality was firm. However, the main propylene parade is weak, and the cost pressure is still relatively large. The refinery continues to push up cautiously, focusing on short-term digestion and consolidation. In terms of liquid chlorine, at the beginning of the week, Shandong's mainstream factory orders rose slightly to 450-550 CNY/ton, with short-term narrow-range finishing mainly. Overall, the cost pressure of the chlorohydrin method of cyclic propylene is still obvious.

From the demand side, the recent foreign epidemic has been severe, exports have been blocked, and demand in the terminal industry has continued to weaken. Downstream polyether inventories are under significant pressure. They often maintain low-load operations, are generally enthusiastic about procurement, and are cautious on demand.

It is expected that in the short-term, supply is tight, and cost pressures are obvious. The inventory pressure of the CYC plant is under control, and the market intention is not reduced. The short-term market still has a small increase in expectations. However, the terminal demand is weak, and the increase is limited.