SunSirs: Propylene Oxide Prices Rose This Week (February 7-10)

　　According to the monitoring data of SunSirs, as of February 10, the average enterprises’price of propylene oxide was 11,800.00 RMB/ton, an increase of 5.67% compared with the price on Monday, an increase of 6.31% compared with the price on January 10, and an increase of 28.19% in a three-month cycle.

　　Analysis review

　　Propylene oxide market prices rose this week. Recently, the price of raw material propylene has been relatively strong, and the cost side has a certain support. Some manufacturers have a low operating load, and the supply is tight. The situation that the downstream on-demand follows up is acceptable. On the 10th, the mainstream quotation of propylene oxide in Shandong’s propylene oxide market was around 11,500-11,600 RMB/ton.Upstream propylene, on February 9, the propylene rose after the festival. After the holiday, the domestic propylene market ushered in a wave of gains, of which propylene (Shandong) rose to 8,300-8,350 RMB/ton. The large-span rise in prices is mainly affected by two factors. First, the price of crude oil rose strongly during the Spring Festival, which formed obvious support on the cost side; Second, the supply and demand of propylene has not fully recovered, some propylene factories have not resumed work, and due to the poor transportation due to festivals and weather, the supply in the region is tight, which further contributes to the rise of propylene.

　　Downstream propylene glycol, according to the monitoring data of SunSirs, as of February 9, 2022, the average ex-factory price of domestic industrial-grade propylene glycol was 17,000 RMB/ton, which was an increase of 1,367 RMB/ton or 8.74% compared with the price on February 6, 2022 (the ex-factory reference price of propylene glycol was 15,633 RMB/ton).

　　Market outlook

　　The propylene oxide analyst of SunSirs believes that the current price of raw material propylene is at a high level, and the supply is temporarily tight. It is expected that in the short term, the propylene oxide market may run strongly.