This Week, the Transaction Focus of China's Propylene Oxide Market Rises (11.17-11.21)

November 23rd, according to reports

This week, the market price of epichlorohydrin in China has risen. According to the monitoring system, as of November 21, the benchmark price of epichlorohydrin was 8,466.67 CNY per ton, an increase of 9.96% compared to November 1.

Price influencing factors:

On the raw materials front: Propylene prices rose this week. Strong cost support pushed the center of gravity for propylene oxide higher. According to the market analysis system, as of November 21, the benchmark price for propylene stood at 6,098.25 CNY per ton, up 0.66% from the beginning of the month (6,058.25 CNY per 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, leading to smooth shipments of the product. Going forward, the propylene oxide market is expected to remain stable, with a slight upward bias.

Market Forecast:

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