June 12th, news:
This week, the market price of propylene oxide showed a steady and slightly upward trend. According to the monitoring system, as of June 12, the benchmark price of propylene oxide in China was 9,200 CNY/ton, an increase of 3.37% compared to June 1.
Raw Materials Side: This week, the propylene market for raw materials has been fluctuating narrowly. The cost side is providing bottom support for the price of propylene oxide. According to monitoring systems, as of June 12, the benchmark price of propylene stood at 8,841.00 CNY/ton, down 3.21% from the beginning of the month (9,134.33 CNY/ton).
Supply side: The supply side is the core driver of the current market stabilization and rebound. In early June, the price of propylene oxide once fell below the key psychological support level of 9,000 CNY/ton, reaching a low of 8,800 CNY/ton. Since then, Zhenhai Phase I and Shenghong have continued to be shut down, Qixiang has planned to reduce production and shut down, while Zheshi Petrochemical and Sanyue have maintained low operating rates. This week, the industry capacity utilization rate is about 59.58%, with the daily capacity utilization rate dropping to 58.23% at one point. Wanhua Phase IV gradually restarted production on June 11, and the positive impact of maintenance on the supply side is gradually decreasing.
On the demand side: June is traditionally a slow season for demand. The operating rate of the polyether polyol industry—the largest downstream sector—stood at only about 52.56%. End-users are experiencing longer inventory destocking periods, and new orders are being placed slowly. Polyether manufacturers are clearly reluctant to accept high-priced raw materials, and their procurement strategies have shifted from “bulk stockpiling” to “small, on-demand replenishment.”
Comprehensive Forecast: According to propylene oxide analysts, in the short term, with enterprises maintaining relatively low inventories and ongoing maintenance activities providing support, prices are expected to continue their stable-to-mildly-rising trend. However, the upward momentum will be limited, and the mainstream spot price range in Shandong is expected to hover between 9,000 and 9,500 CNY per ton. Future price movements will continue to hinge on close monitoring of changes in operating rates and the recovery of end-user orders.
