The propylene oxide market fluctuated and fell in 2021. According to the bulk list data of business society, the average price of domestic propylene oxide enterprises was 18900 yuan / ton on January 1, 2021. As of December 31, the average price of domestic propylene oxide enterprises was 11100 yuan / ton, and the market fell by 41.27% during the year. In 2022, after new year’s day, the market price of propylene oxide increased, and then it was deadlocked and fell.
According to the monthly rise and fall chart of propylene oxide from January to December 2021, the monthly price rise of propylene oxide in 2021 was small, the decline was large, and the overall price fell sharply. The market rose in February, March, April, July and September, with the largest decline in December (23.97%) and the largest increase in February (12.1%).
In the first quarter (January March), the price of propylene oxide rose slightly, with an increase of 0.18%. In January, prices rose first and then fell. The main reasons for the decline were: the mainstream of the willingness to lower prices in the middle and lower reaches, the reduction of raw materials, the slowdown of the overall pace of the market, the slow increase of factory inventory, the supplier’s profit making shipment, and the price reduction. The price rose steadily in February, mainly due to the rising price of propylene in the upstream, no pressure on factory inventory, steady follow-up in the downstream, smooth overall market transmission, boost of raw materials and support from the supply and demand side. In March, the price rose to a high level, the price of polyether cyclopropane hung upside down, the willingness of the middle and lower reaches to lower the price was obvious, and the factory accumulated inventory and hit the top.
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In the second quarter (April June), the price of propylene oxide fell by 18.86%. Propylene oxide rose steadily after falling in April, and new production capacity was released, but the market just needs to be traded smoothly. The main reasons for the weak operation of the market in May: limited cost support, incremental supply, insufficient demand follow-up, strong wait-and-see mood of terminal enterprises, and the market is under pressure and declining. In June, the market first fell and then rose. In the first half of the month, the propylene oxide market was weak. From the second half of the month, due to the impact of logistics and commencement policies, the supply of propylene oxide decreased, the factory shipment was pressureless, the price was quoted, and the market rose steadily.
In the third quarter (July September), the price of propylene oxide increased by 16.33%. In July, the market rose sharply and fell slightly. In the middle and early ten days, the impact of cost is limited. Supply and demand dominate the market, the market supply is tight, and the middle and lower reaches follow up actively, driving the market rise. In the late ten days, it represents that the factory slowly accumulates the warehouse, the market supply tends to be loose, coupled with the obvious pressure on prices in the middle and lower reaches, the focus of market negotiations gradually decreases. The market fell slightly in August. Under the influence of the “double control” policy in September, the manufacturers reduced the load or stopped the car in varying degrees, the overall market supply was reduced, and the tight balance between supply and demand led to a slight rise in the market.
In the fourth quarter (October December), the price of propylene oxide fell by 35.96%. In October, the market fluctuated and fell slightly. In the first ten days of November, the cost support was insufficient, the downstream procurement enthusiasm was not high, the cost support continued to weaken in the middle of November, the supply side was loose, the demand side was weak, and the price pressure fell sharply. In the second ten days, with the rise of the price of raw propylene, the cost support gradually increased, the downstream terminal followed up and picked up, and the price of propylene oxide stopped falling and rose. The demand side was cold in the first ten days of December, the cost support weakened in the middle of December, the factory inventory increased slowly, the demand was still cold, the downstream Reduction Purchase followed up in the second ten days, the factory inventory was under pressure, and the market price of propylene oxide decreased steadily.
In 2022, after the return of new year’s day, the market price of propylene oxide rose and fell. After the new year’s Day holiday, with the gradual rise of cost support, the centralized release of downstream orders, the improvement of factory shipments, the rise of propylene oxide prices, and the low inventory support manufacturers’ prices, but the weak demand side restrained the rise of the market, the market stalemate stabilized, the insufficient demand side performance on the 13th, and the weak market operation. On the 13th, the mainstream quotation of propylene oxide Market in Shandong was around 10450-10600 yuan / ton.
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For upstream propylene, on January 12, 2022, the rise of propylene (Shandong) market slowed down, and the offers of individual enterprises were adjusted sporadically. The mainstream price of propylene in Shandong was 7750-7850 yuan / ton. The delivery of goods by enterprises was stable, the inventory was ok, and the downstream demand was dominated. Near the Spring Festival, some downstream factories had parking plans, and the market trading did not decrease significantly temporarily.
According to the monitoring data of downstream propylene glycol, as of January 12, 2022, the average ex factory price of domestic industrial propylene glycol is 15700 yuan / ton. Compared with the price on January 9, 2022 (the ex factory reference price of propylene glycol is 16033 yuan / ton), the average price is reduced by 333 yuan / ton, a decrease of 2.08%; Compared with the price on January 1 (propylene glycol ex factory reference price of 16400 yuan / ton), the average price was reduced by 700 yuan / ton, a decrease of 4.27%.
The propylene oxide analyst of business society believes that the current price rise of raw propylene and liquid chlorine has some support on the cost side, but the follow-up on the demand side is insufficient. It is mainly wait-and-see, and the market atmosphere is light. It is expected that the propylene oxide market may operate weakly and stably in the short term, and more attention should be paid to the market information guidance.
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