This week, the Chinese propylene oxide market mainly consolidates (10.27-10.31)

October 31 News

This week, the Chinese epoxy propane market was mainly in a consolidation phase. According to the monitoring system, as of October 31, the benchmark price of epoxy propane was 7,700 CNY per ton, a decrease of -0.86% compared to October 1.

Price influencing factors:

On the raw materials front: The center of gravity in the propylene market has shifted downward, weakening support for the propylene oxide market. As of October 31, the benchmark price for propylene stood at 6,095.75 CNY per ton, a decrease of 6.84% compared to the beginning of this month (6,543.25 CNY per ton).

Supply side: The Lihua Yi facility in China has resumed operations, and the supply of spot goods is expected to increase. Market supply is currently stable. Recently, propylene oxide has been in a consolidation phase.

On the demand side: Downstream polyether companies largely maintain rigid demand-based procurement, with a strong wait-and-see attitude. As a result, demand-side support for the propylene oxide market remains limited.

Market Forecast:

Epoxypropane analysts note that the propylene market, the key raw material, has seen a decline in its center price, weakening support for epoxypropane. Downstream demand remains weak, with buyers primarily focusing on essential, immediate needs while adopting a more cautious, wait-and-see approach. Additionally, with Liuhua Yi's production facility restarting, market supply has increased slightly. As a result, the epoxypropane market is expected to remain largely stable in the near term, though close attention will still be needed on raw material prices and shifts in supply-demand dynamics.