This week, the market price trend of propylene oxide in China has declined (12.15-12.19)

December 19th, according to reports

This week, the market price trend of propylene oxide in China has declined. According to the monitoring system, as of December 19th, the benchmark price of propylene oxide was 7,850 CNY/ton, which is a 1.29% increase compared to December 1st.

Price influencing factors:

Raw Materials: This week, the price of propylene, a key raw material, saw a slight decline, and cost support proved insufficient, leading to a drop in the market price of propylene oxide. According to the market analysis system, as of December 19, the benchmark price of propylene stood at 6,115.75 CNY per ton, down 1.05% from the beginning of the month (6,180.75 CNY per ton).

Supply side: As the capacity of some major epoxy propane plants in China is gradually being released, the situation of tight supply has eased. Currently, there is ample inventory, but downstream purchasing is insufficient, leading to a downward trend in the price of epoxy propane.

On the demand side: Downstream buyers are showing a lukewarm purchasing sentiment, resulting in limited transaction volumes in the market. Most orders placed are small and driven by immediate needs. As a result, trading activity among propylene oxide enterprises has weakened, and shipments have become sluggish. It is expected that the propylene oxide market will likely remain stable with a slight downward bias in the near term.

Future Market Prediction:

Epoxy propane analysts believe that the decline in propylene prices, a raw material, has weakened support. The purchasing enthusiasm from downstream demand has also decreased, leading to poor sales of epoxy propane. Additionally, with the gradual release of production capacity by some companies and ample inventory, it is expected that the epoxy propane market in China may operate steadily but on the weak side in the short term. More attention should be paid to the changes in raw material prices and market supply and demand.