In November, China's propylene oxide market first rose then fell

November 30, News

In November, the Chinese epichlorohydrin market first rose and then fell. According to the monitoring system, as of November 28, the benchmark price of epichlorohydrin was 7,933.33 CNY/ton, an increase of 3.03% compared to November 1.

Price influencing factors:

On the raw material front: In November, the market price of propylene, the key raw material, first rose and then fell, while liquid chlorine prices experienced slight fluctuations. In the first half of the month, rising raw material prices provided strong support for propylene oxide, driving its price upward. However, as the end of the month approached, companies began selling off their inventories at lower prices in an effort to boost profits, causing propylene oxide prices to decline. According to monitoring systems, as of November 28, the benchmark price of propylene stood at 6,193.25 CNY per ton, up 2.23% from the beginning of the month (6,058.25 CNY per ton).

Supply side: In the first half of the month, WanHua and XinYue reduced their propylene oxide production, while WanHua purchased additional propylene oxide from external sources, further exacerbating the tight supply situation in the Chinese market. The tight supply situation led to an increase in the price of propylene oxide. In the second half of the month, with the completion of refinery maintenance and increased plant loads at Shandong Jinling and others, the tight supply situation for propylene oxide in China was alleviated.

On the demand side: In the first half of the month, newly commissioned and restarted downstream facilities were relatively concentrated, and coupled with centralized purchasing by some downstream enterprises, market inventories became slightly tight, driving up the price of propylene oxide. However, in the second half of the month, new orders for polyether polyols declined somewhat, and export orders provided insufficient support, resulting in a sluggish trading atmosphere. Purchasing was mainly driven by immediate needs, and as a result, the price of propylene oxide began to decline.

Future Market Prediction:

Epoxy propane analysts believe that currently, the market price of propylene, the raw material, has declined, providing weaker support for epoxy propane. The demand for epoxy propane from downstream sectors has weakened due to insufficient new orders, with purchases mainly driven by essential needs. Additionally, the tight supply situation in the market has somewhat eased, and companies are more willing to sell at lower prices to reduce their profits. It is expected that the epoxy propane market will mainly operate in a weak but stable manner in the later period, with more attention needed on the changes in raw material prices and market supply and demand.