SunSirs: Supported by the Supply Side, Domestic Propylene Glycol Rose 7.11% after the Holiday

　　Price trend

　　According to the monitoring data of SunSirs, as of October 9, the average ex-factory price of domestic industrial-grade propylene glycol was referred to 22,600 RMB/ton. Compared with October 1 (the reference price of propylene glycol was 21,100 RMB/ton), the average price was raised by 1,500 RMB/ton, an increase of 7.11%; compared with September 1 (the reference price of propylene glycol was 17,066 RMB/ton), the average price was raised by 5,533 RMB/ton, an increase of 32.42%.

　　Analysis review

　　In September, the domestic propylene glycol market rose sharply. Entering October, during the National Day holiday, the propylene glycol market performed at a high level and steadily operated; on October 8, the first day of construction after the holiday, the domestic propylene glycol market started to rise sharply, the on-site supply was tight, and there was basically no pressure on inventory. As of the 9th, the price of propylene glycol had reached a new high in recent years. Downstream users were more cautious in obtaining goods and had a strong wait-and-see sentiment for high prices; however, since early October to mid-November, the propylene glycol installations in Shandong and Anhui have different levels of parking plans, in the short term, the market supply will continue to be tight. Therefore, although the demand has not been expanded in a wide range after the holiday, but the factory has a strong willingness to uphold the price, and the market price has risen broadly. On the 9th, the ex-factory price of propylene glycol in Shandong increased to around 22,300-23,000 RMB/ton, which was around 1,000-1,500 RMB/ton higher than the pre-holiday price; the average domestic propylene glycol price was 22,600 RMB/ton, which increased by 7.11% after the National Day holiday.

　　In terms of upstream propylene oxide: During the National Day holiday, the domestic propylene oxide market declined broadly. On the first day after the holiday, the propylene oxide market continued to fall. On the 9th, the market price stopped falling and rebounded, and the propylene oxide market stopped falling and rebounded slightly. Downstream terminals were following up better, and the atmosphere in the market was picking up. As of October 9, the average price of propylene oxide production in Shandong was 16,666 RMB/ton. Compared with the price on October 1 (17,333 RMB/ton), the average price was lowered 667 RMB/ton, a decrease of 3.85%.

　　Market outlook

　　Affected by the shutdown of the propylene glycol plant for maintenance in October, the supply of propylene glycol on-site will continue to be at a low level. Under the situation of less sales pressure, the propylene glycol analyst of SunSirs believes that in the short term, the supply side can still support the domestic propylene glycol market to continue to operate at a high level.