SunSirs: Lack of Demand Support, the Focus of Propylene Glycol Declined after the Holiday

https://www.chemnet.com   Oct 13,2023

　　Analysis of Factors Influencing the Market of Propylene Glycol

　　In terms of demand: Downstream demand was light, with limited new orders and transactions

　　After the holiday, the trading atmosphere in the propylene glycol market was light, downstream was cautiously purchasing based on demand, and some of them mainly digested the materials prepared in the early stage. 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 profit-cuttings to ship. The overall focus of the propylene glycol market declined.

　　On the supply side: supply was loose, shipments were under pressure

　　Before the holiday, the atmosphere of the propylene glycol market had become clear, with cold downstream stock and factory inventory under pressure. Therefore, after the holiday, the overall supply of propylene glycol in the field was loose, and the supply side provided loosened support for propylene glycol. After the holiday, the wait-and-see mentality of the propylene glycol market had increased.

　　In terms of raw materials: low carbon dioxide operation, weak stability of propylene oxide, and poor cost support for propylene glycol

　　Before 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 propylene oxide market remained stable and weaker, providing poor cost support for propylene glycol. Therefore, loose cost support also increased the downward space for propylene glycol.

　　In terms of related products, the low price of dimethyl carbonate had declined, increasing 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 was 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 weaker operation of propylene oxide market provides general cost support for propylene glycol, but due to the narrowing of profit margin, it is expected that the 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 SunSirs believes that in the short term, the propylene glycol market will experience limited market fluctuations, and the overall market may be adjusted to be weaker. Specifically, it is necessary to pay more attention to changes in supply and demand news.

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