In mid to late March, the Chinese propylene oxide market showed an upward trend

March 23 news

In mid to late March, the Chinese epichlorohydrin market showed an upward trend, characterized by a rapid and significant increase, mainly driven by factors such as cost pressures and supply reductions. According to the monitoring system, as of March 23, the benchmark price of epichlorohydrin was 11,466.67 CNY/ton, representing a 43.33% increase compared to March 1.

On the raw-material side, propylene is the most critical direct feedstock for propylene oxide. Affected by supply-chain disruptions caused by geopolitical conflicts and supported by rising crude-oil costs, propylene prices remain stubbornly high. According to monitoring systems, as of March 23, the benchmark price of propylene stood at 8,574.33 CNY per ton, up 33.74% from the beginning of this month (6,411.00 CNY per ton).

Supply side: Since mid-March, some epichlorohydrin plants in the northern regions of China have experienced fluctuations: Shandong San Yue's epichlorohydrin plant suddenly shut down; major enterprises such as Jinling and Xinyue have maintained low operating loads; some PDH plants are expected to undergo maintenance. These factors have led to a reduction in the circulation of epichlorohydrin spot goods, making the market supply tighter. In response to the dual pressures of cost and supply, epichlorohydrin producers have actively raised factory prices. For example, on March 23, Binhua Group significantly increased its price by 1,100 CNY/ton, with the final quote reaching 11,600 CNY/ton.

Demand side: In the second half of March, the soft foam and rigid foam polyether market in China rose passively along with raw material prices. By March 20th, the price of rigid foam polyether in North China reached 10,000 to 11,000 CNY per ton. However, the operating rates of polyether factories remained largely unchanged, focusing mainly on fulfilling previous orders. As the price of propylene oxide increased rapidly, downstream enterprises showed a clear resistance to high-priced raw materials, leading to a deadlock in negotiations within the market. New orders were limited, with most purchases being small and based on urgent needs. Some merchants faced increasing pressure to sell, and low-priced supplies appeared frequently.

Market Forecast: According to epoxy propane analysts, rising propylene prices on the feedstock side, coupled with sudden plant shutdowns and low-load operations, have intensified spot market tightness, while cost pressures remain firm and supportive. However, downstream demand shows insufficient acceptance of high-priced raw materials, with limited willingness to chase higher prices and only modest follow-up on new orders. It is expected that the Chinese epoxy propane market will continue to trade steadily but with a slight upward bias in the near term. Future market trends will require close monitoring of the resumption progress of large-scale plants such as those operated by Sinochem Quanzhou, as well as the actual sustainability of the recent surge in polyether exports.