[propylene glycol] supply tightening, prices hit a record high

Domestic propylene glycol inventory continues to be low, part of the device load reduction production, resulting in another reduction in supply, driving the downstream to start replenishment, so propylene glycol factory inventory risk is not large, polyether also follow up, the formation of market transmission. Later, considering that there are still factories that stop for maintenance, the supply has a downward trend, and short-term propylene glycol will mainly run at a high level.

Shisheng east China camp driving, supply is still tight.  On September 11, Shandong Shidasheng Huadongying production area was ignited and started, and the supply increased. However, on the premise of the delivery of foreign trade orders, the impact on alleviating supply shortage was relatively limited.

 Since September 10, the epidemic situation in Fujian has continued to escalate, among which Putian, Quanzhou and Xiamen have been under control. In terms of propylene glycol, restrictions on individual automobile transportation have increased, and the overall impact is temporarily limited.

Dual control of energy consumption, partial area, upstream and downstream enterprises have cut production, the production situation In various areas of the National Development and Reform Commission issued the first half of 2021 double energy consumption control target completion barometer ", many provinces and cities index is relatively serious, rapid response, production adjustment, more chemicals appear relatively concentration under the influence of jiangsu region, in particular, as the main unsaturated resin concentration area,  It is also the main consumption place of propylene glycol, most factories have stopped, polyether is also limited or slightly reduced negative, to be further adjusted.  

Since August, there has been the maintenance situation of propylene glycol factories. The factory inventory is low, and the situation of no pressure at the supply end continues to limit the procurement in the middle and downstream, leading to the continuous game between supply and demand.  

In terms of the on-off situation of the device, the domestic supply of propylene glycol gradually decreased in the short term, and it still operated at a lower level than the early stage for a short period of time, which has been and continues to limit the purchasing mentality of the middle and lower reaches.  

In the near future, Shandong Wells has a parking plan and a long cycle this month, Shandong Depu also has a plan to stop maintenance, Anhui Tongling Jintai Chemical is expected to stop maintenance in early October, the cycle is about half a month.  Overall, supply continues to decline.  

Above in the process of supply tightening, most factories have reduced load or planned to stop, in the case of no spot, propylene glycol price keeps rising, Shandong mainstream offer 20500 CNY/ton, a new high in the past decade.  

Summary of the synchronous contraction of supply and demand, in the traditional peak season, global circulation under the background of the fundamentals and mentality are still positive, but the downstream industry is also a certain degree or be cut, so the evaluation of short-term propylene glycol is still a high market with narrow amplitude, continue to pay attention to more trends carefully.