After returning from the Double Festival holiday, the overall domestic propylene glycol market has been weak and declining. On October 11th, the market price of domestic industrial grade propylene glycol was set at 8200 yuan/ton. Compared with before the holiday, the price of propylene glycol was reduced by 266 yuan/ton, a decrease of 3.15%.
Analysis of Factors Influencing the Market of Propylene Glycol
In terms of demand: Downstream demand is light, with limited new orders and transactions
After the holiday, the trading atmosphere in the propylene glycol market was light, with downstream cautious and demanding procurement. Some of the raw materials were mainly digested in the early stage, while the downstream industries such as unsaturated resin and elastic polyether showed weak wait-and-see. The purchasing atmosphere was limited, and new orders on the propylene glycol market were limited. The overall demand side lacked effective support, and some propylene glycol factories and suppliers made concessions to ship. The overall focus of the propylene glycol market declined.
On the supply side: loose supply and shipment pressure
Before the holiday, the atmosphere of the propylene glycol market has become clear, with cold downstream stock and factory inventory under pressure. Therefore, after the holiday, the overall supply of propylene glycol in the field is loose, and the supply side provides loose support for propylene glycol. After the holiday, the wait-and-see mentality of the propylene glycol market has increased.
In terms of raw materials: low carbon dioxide operation, stable and weak epoxy propane, poor cost support for propylene glycol
Prior to the holiday, the carbon dioxide market in the raw material end plummeted significantly, providing insufficient support for propylene glycol. After the holiday, the carbon dioxide market remained low, and the cost support for propylene glycol remained weak.
After the holiday, the overall market situation of epoxy propane showed weak performance, providing poor cost support for propylene glycol. Therefore, loose cost support will also increase the downward space for propylene glycol.
In terms of related products: The low negative price drop of dimethyl carbonate exacerbates the cost pressure on propylene glycol
After the Double Festival, the market for dimethyl carbonate co produced with propylene glycol also saw a slight decline, and both products fell into a downward trend, which also increased the cost pressure on the enterprise and narrowed the overall profit margin.
Analysis of the Future Market of Propylene Glycol
In terms of supply, the overall enthusiasm for downstream stocking of propylene glycol before the holiday is average. Currently, the overall supply of propylene glycol in China is relatively sufficient.
In terms of equipment, it has been reported that some propylene glycol units in Shandong region are scheduled to undergo short-term maintenance for about half a month. In Shaanxi region, the units are expected to resume operation in the middle of the month, and it is expected that there will be little change in propylene glycol operating load in the near future.
In terms of raw materials, the stable and weak operation of epoxy propane market provides general cost support for propylene glycol, but due to the narrowing of profit margin, it is expected that the significant decline of propylene glycol market will be limited.
In terms of exports, export orders still provide some support to the market, driving the mentality of the industry.
Therefore, from a comprehensive perspective, the propylene glycol data analyst of the Business Society believes that in the short term, the propylene glycol market will experience limited market fluctuations, and the overall market may be weak and adjust its operation. Specifically, it is necessary to pay more attention to changes in supply and demand news.
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