This Week's Chinese Propylene Oxide Market Shows Fluctuating Decline (8.4-8.8)

August 8th News

This week, the Chinese epoxy propane market fluctuated downward. According to the monitoring system, as of August 8th, the benchmark price of epoxy propane was 7,633.33 CNY per ton, a decrease of 3.98% compared to the beginning of the month.

Price influencing factors:

Raw material side: This week, the price of propylene, a raw material, has slightly increased. According to market analysis systems, as of August 8, the benchmark price of propylene was 6,450.75 CNY/ton, representing an increase of 0.27% compared to the beginning of this month (6,433.25 CNY/ton).

Supply side: On August 4th, Qixiang Tengda's 300,000 tons/year propylene oxide plant in China has completed all maintenance and technical renovation work and is gradually resuming normal production. It is understood that all of Qixiang Tengda's propylene oxide will be sold externally. The market supply has significantly increased, with an expected increase to around 19,000 tons. Overall, the supply of propylene oxide in China appears to be relatively loose, increasing industry competition and leading to a significant decline in prices.

Demand side: The trading atmosphere for downstream propylene oxide is generally moderate, with buyers showing relatively low purchasing enthusiasm and mainly consuming previous orders. Overall, demand provides weak support to the propylene oxide market, and the market is likely to operate in a consolidating manner in the future.

Future Market Prediction:

Epoxy propane analysts believe that the concentrated release of epoxy propane market capacity has led to a relatively loose supply situation, and raw material prices have also increased. In addition, downstream markets are purchasing based on rigid demand, and the trading atmosphere is average. It is expected that in the short term, the epoxy propane market will mainly operate in a consolidation mode, with more attention needed on raw material prices and the changes in supply and demand upstream and downstream.