This week, the domestic propylene oxide market showed a narrow fluctuation with weak transactions (May 18-22)

Revised for clarity and natural English flow: The title of the article is: [This week, China's propylene oxide market experienced narrow fluctuations and weak trading (May 18-22)]

May 22nd, according to the news

This week, the Chinese epoxy propane market as a whole showed a narrow fluctuation and weak trading trend, with limited price fluctuations and a strong wait-and-see sentiment in the market, and a clear game characteristic between upstream and downstream. According to the monitoring system, as of May 22, the benchmark price of epoxy propane was 9,200 CNY/ton, a decrease of -10.39% compared to the 1st. On the raw material side: This week, the supply of propylene spot was relatively loose, with refineries maintaining a steady shipping pace and prices slightly falling, leading to a somewhat weaker support for the cost end of epoxy propane. Meanwhile, the price of liquid chlorine did not fluctuate much, remaining at a low level, which alleviated the overall production cost pressure for epoxy propane. The lack of significant increases or decreases in raw materials led to the loss of strong cost-driven momentum for epoxy propane, making it difficult to form a sustained upward price drive, and the overall adjustment mainly followed the slight changes in raw materials, with the cost end having a weaker guiding role on the market trend. According to the monitoring system, as of May 22, the benchmark price of propylene was 9,134.33 CNY/ton, a decrease of 3.79% from the beginning of this month (9,494.33 CNY/ton).

Supply side: This week, the overall supply of propylene oxide in China remained stable, with some facilities maintaining regular operations and few undergoing maintenance, resulting in an overall industry operating rate at a moderate level. Some integrated companies had steady shipments, and regional supply circulation was normal; a few manufacturers, due to inventory pressure, offered moderate discounts on their sales. Regionally, the main production areas in Shandong and East China had ample supply, with no significant accumulation or shortage of inventory for enterprises. Overall, there was no concentrated reduction in production or sudden equipment failures this week, and the market had sufficient supply, maintaining a loose supply-demand balance, which put clear downward pressure on prices.

On the demand side, the downstream polyether polyol industry is primarily driven by rigid demand procurement. Recently, downstream end-use industries such as home furnishings, soft furniture, and automotive interiors have seen only moderate resumption of operations, with insufficient orders. As a result, polyether manufacturers are procuring materials on an as-needed basis and are reluctant to build up large inventories. Demand from smaller downstream sectors, such as fine chemicals and pharmaceutical intermediates, remains stable but at a limited scale, making it difficult to boost overall demand. Overall, downstream players show little willingness to chase price increases and mostly adopt a just-in-time purchasing approach. Consequently, market transactions are sluggish, with lower-priced supplies selling relatively smoothly, while high-priced deals struggle to find buyers. The weak demand has directly resulted in a lack of momentum in the propylene oxide market.

Comprehensive Forecast: According to propylene oxide analysts, this week the propylene oxide market will be dominated by weak fluctuations, influenced by three key factors: limited support from raw material prices, stable and ample supply, and relatively weak downstream demand. In the short term, propylene—the primary raw material—will exhibit limited price volatility, and there are no significant plans for supply contraction at the moment. Meanwhile, terminal demand is recovering slowly, leaving the market lacking positive catalysts. It is expected that the propylene oxide market will continue its narrow trading range in the near term, with prices unlikely to experience substantial fluctuations. Going forward, close attention should be paid to trends in upstream raw materials, operational status of major production regions, and changes in polyether industry operating rates. Overall, the market will remain characterized by a delicate balance between supply and demand.