Daily Review of China market Propylene glycol (2020-12-22)
Domestic main market: Shandong propylene glycol market kept narrowly moving upward but continued to explore the market rally weakening. Propylene oxide prices continue to rise as manufacturers intent to raise prices higher by the support of cost side. Propylene glycol traders wait-and-see, rarely enter the market. Downstream purchasing end kept waiting and inquiring, only some accept high prices to maintain the inflexible demand. The offer in Shandong market today refers to 10,900-11,000 yuan/ton for acceptance out of the factory.
Upstream and downstream: In the beginning of this week, the upstream propylene oxide market in Shandong continued to rise, the impact of heavy pollution weather in the north remained, loading and unloading time of upstream and downstream vehicles in the region was limited, the overall circulation resources of the spot were not loose, the seller’s inventory was not under pressure. The downstream polyether inventory is also low and has stable demand to the raw material PO. In Shandong main market offer is 17600-17700 yuan/ton, acceptance 17800-17900 yuan/ton.
Market trend analysis and forecast: Raw material PO price continues to rise, cost side high support continues, some manufacturers temporarily stop production for facilities overhaul, partial supply is tight, the overall inventory of the market is fair, the downstream needs to inquire primarily, but actual order is difficult to clinch a deal, traders mainly wait for decrease, not enter the market. It is expected that domestic PG market continue to explore the price.
Contact us for inquiry: exp1@gzchem.com/info@gcresin-paint.com 2020-12-22