The market price of propylene oxide shows a differentiated pattern of short-term low and medium-to-long-term medium-high positions in China

April 17th, News

According to Spotcom data, after reaching a high on April 14, it started to flatten and slightly decline, indicating that the short-term upward momentum has clearly weakened. The 20-day moving average is still slowly rising, but the slope has flattened, and the short-term trend has shifted from an uptrend to a weak consolidation.

Combining the five-level positions, during the cycle of the 15th and 16th, the 10-day and 20-day positions are both at low levels, indicating that prices have already fallen back from high levels in the short term; the 30/60/90-day positions are at medium to high levels, indicating that the medium-term trend has not yet completely deteriorated and is still in a relatively strong pattern, but the upward momentum has already weakened. In the short term, the focus will be on consolidating to digest the pressure.

Combining the two indicators mentioned above, propylene oxide currently exhibits a clear divergence pattern—“short-term low, medium-to-long-term mid-to-high.” The upward momentum of the short-term moving averages has weakened, and prices have entered a phase of weak, high-level oscillations. Among the five timeframes, the 10-day and 20-day moving averages both indicate low levels, signaling that prices have rapidly retraced from their recent highs and are now in an oversold condition in the short term. However, the 30-day, 60-day, and 90-day moving averages remain at mid-to-high levels, with the one-year moving average even situated in the upper range. This suggests that the medium-term trend has not yet fully weakened, and long-term prices remain firmly at their absolute highs over the past year. This divergence implies that, in the short term, the primary focus will be on absorbing downward pressure from higher price levels; meanwhile, high-level resistance persists in the longer term, limiting the room for any meaningful rebound.