Propylene Glycol Market Short-term Range Falling Expectation in China

Last week, propylene oxide raw material due to frequent plant failures, rapid rise in market prices, boosted by raw material cost, propylene glycol market narrow range up, the focus of discussion moved up. Additionally, some of the propylene glycol factories have been shut down, and the supply side has offered a certain advantage. In some downstream areas, a small amount of stock has been reserved under the fear of upsurge, resulting in an increase in new orders in the market. However, this week, with the restart of propylene oxide plant in Jinling, Shandong Province, and the rumor of Jishen device restart, together with the growing resistance of polyether downstream, the transaction of CYCLOPROPYLENE is limited, the price quickly falls back, the previous increase is exhausted, and the downstream channel of propylene oxide is rapidly opened. Propylene glycol, which was boosted by raw materials in the early stage, will have a trend after the raw materials fall sharply? Let's make a brief analysis from all aspects.

Firstly, the plant is parked centrally. Shandong Wells 2 sets of devices were scheduled to restart in the near future, but according to the latest news, its overhaul plan will be postponed to the vicinity of this weekend; due to the arrival of the Central Inspection Team, the restart time of Yulin plant in Shaanxi Province has been delayed. In addition, this week, a new member of the device parking queue: Shandong Shidasheng East China Ying New Area two sets of devices parked on the evening of May 12, preliminary plan to park for about 10 days. The delayed start-up and shutdown of the plant led to a sharp decline in the recent spot production of propylene glycol, and some manufacturers had no pressure on their inventories. The offer remained firm.

Secondly, the raw material cyclopropane dropped rapidly. Jilin Shenhua plant is currently in preparation for start-up, this week's reserve and restart expectations, in addition, market rumors, Nanjing Hongbaoli PO device this week reserve and restart expectations, Shandong Jinling last week overhaul of a single line, this week has been restored, the current overall load of the two lines is about 70% of the operation, gradually loading, Shandong Xinyue 350,000 tons/year device is currently 30% of the load, this week restart expectations, polyether new orders. The shrinkage is obvious, the circadian propylene factory offer is loose, polyether has fallen, and new single transaction is scarce. The supply side of Cyclopropylene is becoming more and more relaxed, but the substantive demand at the end of the demand is still weak, and the late market of raw materials is not optimistic.

Thirdly, the demand for downstream resins is weak. After propylene glycol followed the rise of raw materials, downstream factories had a small amount of centralized replenishment under the fear of rising mentality, but most downstream factories had insufficient expectations of the future market, with strong hollow outlook, limited enthusiasm for market entry and purchase, and weak terminal capacity, so the new single transaction atmosphere was flat. 

Although the propylene glycol market has a good supply side support, the raw material support is insufficient, and the momentum to reverse the market fatigue is slightly insufficient. Finally, the downstream demand side needs to cooperate. Therefore, the analysis shows that the domestic propylene glycol market has a narrow short-term memory decline expectation.