This week, the mainstream price of propylene oxide in the Chinese market has exceeded the 10,000 yuan mark (3.9-3.10)

March 10th, news:

This week, the mainstream price of propylene oxide in the Chinese market has exceeded the 10,000 yuan mark. In Shandong, the main production area, the market's mainstream negotiation price has reached 10,500 CNY/ton (cash on delivery), with a single-day increase of 1,500 CNY/ton, representing a price increase of 16.67%. Some production enterprises, such as Lihuayi Weiyuan Chemical, also reported a factory price of 10,500 CNY/ton on March 9th. According to the monitoring system, as of March 10th, the benchmark price of propylene oxide was 11,016.67 CNY/ton, an increase of 37.71% compared to the 1st.

On the raw material front: Recently, international oil prices and the prices of imported raw materials (such as propane and methanol) have risen sharply. This has directly driven up the production costs of key feedstock materials for propylene oxide, such as propylene, creating a transmission chain of "rising import costs → higher propylene costs → subsequent increase in propylene oxide prices." The liquid chlorine market has been experiencing volatile upward trends, further intensifying cost support. According to monitoring systems, as of March 10, the benchmark price for propylene stood at 9,701.00 CNY per ton, representing a 51.32% increase compared to the beginning of this month (6,411.00 CNY per ton).

Supply side: China's propylene oxide production facilities are generally operating steadily, but some companies have experienced fluctuations in load reduction. For example, the PO unit at Lihuayi, a major plant in Shandong, saw a decrease in output due to raw material issues. Overall, the industry's operating rate is maintained at a relatively high level, around 77.34% to 80%. However, the shipping atmosphere from suppliers is good, and some companies have even temporarily suspended quotations.

On the demand side: Downstream enterprises, such as those producing polyether, are facing tremendous cost pressures, forcing them to passively raise prices. Some companies have indicated expectations of reduced production, and their purchasing attitudes have turned cautious, with most firms focusing primarily on meeting immediate needs or fulfilling existing contracts.

Market Outlook: Epoxy Propane analysts believe that the sharp rise in raw material prices is providing support for epoxy propane market prices. Downstream enterprises are passively raising their prices, though the extent of such increases remains limited, with rigid demand-driven procurement remaining dominant. It is expected that epoxy propane prices will likely remain stable at high levels in the short term. Further attention should be paid to fluctuations in raw material prices and changes in market supply and demand.