In early August, the domestic propylene glycol market fluctuated and fell back. At the beginning of the month, the market still had expectations of rising prices. With some companies lowering their factory quotes, the focus of spot trading gradually shifted downwards, and on-site negotiations were mainly based on actual orders, resulting in a widening gap between high and low prices. As of August 13th, the average production price of propylene glycol in Shandong region was 9266 yuan/ton, a decrease of 2.80% from the beginning of the month.
Core driving factors
Supply side: The early maintenance equipment has resumed production one after another, the industry’s production has increased month on month, and the market supply of goods has increased; The operation of the dimethyl carbonate co production unit is stable, and the by-product propylene glycol continues to flow out, increasing market supply pressure; A small number of devices have fluctuations, forming a slight buffer in supply, resulting in an overall shortage of imported goods and limited external impact.
On the cost side, the raw material propylene oxide has weak fluctuations, propylene follows the fluctuations of crude oil, and the cost support of propylene glycol has loosened. The cost side does not have strong upward momentum, but there is still some support at the bottom of the raw materials, and the space for a significant deep decline is limited.
Demand side: Located in the traditional off-season of summer, the downstream production of unsaturated polyester resin and alkyd resin is relatively low, and the orders for terminal building materials and composite materials are weak. Downstream purchases are mostly for essential needs, and there is a lack of willingness to stock up; Daily chemical and food grade essential needs are stable, but their proportion is limited, making it difficult to drive the overall market; Export orders remain resilient and divert domestic sources to a certain extent, but it is not enough to reverse the domestic off-season pattern.
Market forecast:
In the short term, it is expected that propylene glycol will continue to fluctuate weakly within the range. The resumption of production on the supply side has brought about an increase in supply and accumulated pressure on inventory; The off-season on the demand side is still ongoing, making it difficult for downstream companies to make significant improvements; The cost side epoxy propane has bottom support, and the price has limited room for deep decline. Focus on tracking the trend of raw material epoxy propane, changes in equipment maintenance, and downstream replenishment rhythm.
| http://www.thiourea.net |