June 22nd, according to the news,
This week, the Chinese epichlorohydrin market showed a trend of first rising then falling. According to the monitoring system, as of June 18, the benchmark price of epichlorohydrin was 8,500.00 CNY/ton, a decrease of 12.37% compared to the beginning of the month (9,700.00 CNY/ton).
On the raw material front, propylene prices continued to weaken this week. As of June 18, the Shandong propylene market fell to 7,934.33 CNY/ton, a significant drop of 426.67 CNY/ton from the previous day. The further weakening of support from the raw material side has become one of the key factors dragging down propylene oxide prices. According to monitoring systems, as of June 18, the benchmark price for propylene stood at 7,934.33 CNY/ton, representing a decrease of 13.14% compared to the beginning of the month (9,134.33 CNY/ton).
Supply side: The concentrated maintenance period previously reduced the industry capacity utilization rate to 59.58%. However, by mid-month, the resumption of production at Wanhua's Phase IV POCHP facility led to a diminishing marginal benefit from maintenance. The current capacity utilization rate has now rebounded to over 63%, with suppliers increasing shipments, though the increase is limited, and inventory pressure has not been effectively alleviated.
On the demand side, June showed distinct characteristics of the traditional off-season. The operating rate of polyether polyol—the largest downstream product—stood at only about 52.56%. End-users have seen their inventory-depletion cycles lengthen, and new orders are being placed slowly. Prices for polyethers continue to fall below those of propylene oxide, prompting downstream buyers to shift their procurement strategy toward "small, on-demand replenishment orders."
Comprehensive Forecast: According to propylene oxide analysts, in the short term, the propylene oxide market is expected to continue its weak and volatile trend. Whether prices can stabilize will depend critically on the performance of propylene—the raw material—and developments related to plant maintenance.
