This Week, the Transaction Focus of China's Propylene Oxide Market Rises (11.10-11.14)

November 16th, according to the news

This week, the transaction center of China's propylene oxide market has risen. According to the monitoring system, as of November 14th, the benchmark price of propylene oxide was 8,133.33 CNY per ton, an increase of 5.63% compared to November 1st.

Price influencing factors:

On the raw materials front: This week, propylene prices have remained relatively strong. Costs continue to provide support, driving the center of gravity for propylene oxide higher. According to the market analysis system, as of November 14, the benchmark price for propylene stood at 5,960.75 CNY/ton, representing a 1.61% decrease compared to the beginning of the month (6,058.25 CNY/ton).

On the supply side: Fluctuations in supply have contributed to a temporary tightening of propylene oxide availability. Recently, both Wanhua and Xinyue reduced their production of propylene oxide, with Wanhua even increasing its external procurement of the chemical—further exacerbating the already tight market conditions. This constrained supply situation has driven up prices for propylene oxide.

On the demand side: Downstream buyers continue to show decent purchasing interest in propylene oxide, with relatively high procurement enthusiasm, and shipments of propylene oxide remain smooth. Going forward, the propylene oxide market is expected to remain stable, with a slight upward bias.

Outlook:

Epoxy propane analysts believe that the prices of propylene, the raw material, are still supported, and the purchasing enthusiasm from the downstream demand side is high, making the sales of epoxy propane smooth. However, some epoxy propane companies in China are currently operating at reduced capacity, leading to a tighter market supply. It is expected that in the short term, the epoxy propane market in China may operate with a stable and slightly stronger trend. More attention needs to be paid to the changes in raw material prices and market supply and demand.