Price trend
According to the monitoring data of SunSirs, as of October 27, 2022, the average ex factory price reference of domestic industrial propylene glycol was 8,100 RMB/ton, which was 1,466 RMB/ton lower than that on October 1 (the reference price of propylene glycol was 9,566 RMB/ton), a decline of 15.33%.
Analysis review
It can be seen from the data monitoring chart of SunSirs that the domestic propylene glycol market in October showed a weak decline overall. After the National Day holiday, the propylene glycol market began to run down broadly. As of October 13, the market price of propylene glycol fell to about 8,666 RMB/ton, with a decline of more than 9% in six days. Then, the decline of propylene glycol continued, and the effective support in the market was insufficient. In late October, the center of gravity of propylene glycol continued to decline. The main reasons for the continuous decline of propylene glycol market are as follows:
First, in terms of cost, in the first ten days of October, the raw material propylene oxide market fluctuated, giving propylene glycol a average support. In later October, the propylene oxide market continued to decline, giving propylene glycol a loose cost support. In later October, propylene glycol trend "went down with raw materials".
Second, in terms of demand, after the National Day holiday, the downstream demand of propylene glycol was always average, and the purchase was cautious. Users replenished in an appropriate amount, and the transmission of propylene glycol supply and demand was slow. Therefore, in the case of weak supply and demand support, the propylene glycol market price was adjusted downward one after another. Therefore, in the case of weak supply and demand support, the propylene glycol market price was adjusted downward one after another.
As of October 27, the domestic propylene glycol market price is around 8,000-8,300 RMB/ton, and the monthly price decrease was around 1,000-1,600 RMB/ton. At present, the wait-and-see atmosphere in the propylene glycol market is still strong.
As for the upstream propylene oxide, the domestic propylene oxide market had generally declined since October (10.1-10.26). According to the data monitoring of SunSirs, the reference price of propylene oxide was 9,833.33 RMB/ton on October 26, a decrease of 2.64% compared with October 1 (10,100 RMB/ton).
Market outlook
At present, the downstream demand of propylene glycol is improved insufficient, and the supply side shipment is active. The propylene glycol data engineer of SunSirs believes that in the short term, the propylene glycol market is dominated by weak consolidation and operation, and more attention should be paid to the information changes on the supply and demand side.
