Propylene Oxide is Approaching the New Year with High Prices

After the New Year's day holiday, the wait-and-see market demand side of the industry has always been flat, coupled with the smooth production of new installations in East China, the overall epoxy propane market is mainly bearish, and the price reappears. At this time, the impact of propylene oxide cost surface appears, the mainstream process of chlorine alcohol method device has a loss, Shandong jinling, Xinyue, Sanyue, shidamany devices temporarily negative operation, Shandong field spot shrinkage.

And east China region is spot is relatively abundant, but this week the main row of single main factory delivery, speed slower, combined with the two price has yet to reach the freight, also does not have the supply of goods can be flowed under the condition of shandong area, both market shows delicate balance, clinch a deal the spot has increased, especially the shandong market part of polyether factory new single amount recovered better, add more shopping ring c, Drive market sentiment to recover, huanc factory to maintain low load + low inventory state, the price of a small continuous upward, the surrounding area wait-and-see with rising. As of January 22, shandong area mainstream cash ex-factory to 11100-11300 CNY/ton.

In the follow-up, with the approaching of the Spring Festival, the number of visitors increases. Sinochem Quanzhou plant plans to restart and resume from January 25 to 27, which has certain negative effects on the mentality, but the substantial increment is expected to be launched in February.

 Next week is the last week before the Spring Festival holiday, logistics in some areas is expected to be gradually limited, and terminal customers are on holiday one after another. Some downstream polyether manufacturers will have negative maintenance expectations for 3-7 days during the Spring Festival. There is no specific parking limit notice for the Winter Olympic Games.

We are concerned about the pollution level of the weather in the north. If there is heavy pollution weather, there may be requirements on the load of the equipment in the stadium.

To sum up, the overall demand side is expected to gradually weaken, and the price of CIPROl is gradually stabilizing. But before the holiday, the inventory of on-site factories is low, and even if a small amount of accumulation, the downside risk is low. Specifically, we should pay attention to the load of on-site upstream and downstream devices and the inventory position of factories during the Spring Festival holiday.