Propylene glycol: tight supply, market price rebound

After the domestic industrial-grade propylene glycol market continued its weakness and decline for several days, the expectation for price rising was strong. Since last weekend, the propylene glycol industry has been expecting price adjustments. Entering this week, the decline in raw material PO has stopped and rebounded, so it gave support for the cost of propylene glycol. Coupled with the current tight supply, low inventory and less pressure on the supply side, the factory is reluctant to sell. On the 9th and 10th, the factory propylene glycol prices continued to rise. Only the rigid demand from downstream mostly continued to purchase. As a result, as of November 10, the ex-factory price of domestic industrial-grade polypropylene refers to around 9500yuan/ton. As of November 11th, around 10000yuan/ton.

On the upstream side, in the past two days, the domestic propylene oxide market has stopped falling and is expected to have a strong trend. The factories in some areas raised the price of propylene oxide by around 200-400 yuan/ton. The current trend of the market has rebounded. By November 10, the mainstream quotation in the propylene oxide market will be around RMB 14,500-15,000/ton.

Internationally, on Monday (November 9), WTI’s December 2020 futures increased by US$40.29 per barrel by US$3.15, and Brent’s January 2021 futures at US$42.40 per barrel rose by US$2.95. China’s SC crude oil futures main contract 2101 fell 0.2 yuan/barrel to 243.2 yuan/barrel.

exp1@gzchem.com   2020-11-11