Post-holiday, China's propylene oxide market surges and then stabilizes

October 16, news

Post-holiday, the Chinese epoxy propane market surged and then stabilized. According to the monitoring system, as of October 16, the benchmark price for epoxy propane was 8,066.67 CNY/ton, an increase of 3.86% compared to October 1.

Price influencing factors:

On the raw material front: The market price of propylene, a key feedstock, saw a slight increase, providing some support to the propylene oxide market. As of October 16, the benchmark price for propylene stood at 6,400.75 CNY per ton, down 2.18% compared to the beginning of this month (6,543.25 CNY per ton). However, the upward pressure on propylene prices has helped bolster the propylene oxide market to a certain extent.

Supply side: After the holiday, the supply of propylene oxide in China tightened. Many companies announced plans for shutdowns or production cuts, leading to a reduction in market supply. However, downstream enterprises have weak demand, mainly adopting a wait-and-see attitude and being cautious in purchasing. It is expected that propylene oxide will maintain a stable operation in the later period.

On the demand side: Post-holiday, downstream polyether companies are mostly maintaining rigid demand procurement, with a strong wait-and-see attitude. Polyether producers have limited flexibility in adjusting their operating rates, while propylene glycol manufacturers are gradually increasing their loads. Overall, demand remains steady and subdued. As a result, demand-side support for the propylene oxide market remains limited.

Market Forecast:

The epoxy propane analyst believes that the favorable support for the Chinese epoxy propane market is relatively limited. The raw material end, propylene market, has slightly rebounded, providing acceptable support, but the downstream demand is weak and the sentiment of waiting and watching is strong. It is expected that the epoxy propane market will operate steadily in the later period, and more attention needs to be paid to the changes in raw material prices and market supply and demand.