Review of China’s propylene glycol market last week (2021. 06. 22)

[Price review] The propylene glycol market maintained a downward trend this week, and the weekly average price did not change much from last week which referenced RMB16,500-17,000/MT. During the week, Shunxin Chemical maintained the state of overhaul, and other manufacturer were started steadily. Early orders were gradually shipped, and the market supply gradually eased. The downstream intention to receive goods is weak, and high prices affect export orders, and market prices are gradually falling. After the middle of the week, the price of propylene oxide/polyether fell simultaneously, and the bearish atmosphere for propylene glycol continued to increase.

[Supply] The overall start of the market this week has increased compared with last week, and the supply has increased.

[Demand side] This week, the mainstream domestic unsaturated resin enterprises started smoothly. It is expected that the unsaturated resin market will be the main focus next week.

[Inventory] The overall operating load of the market during the week increased compared with last week, the supply increased, the supplier’s orders were gradually delivered, and the supply tension gradually eased. Some traders arbitrage their shipments, and their inventories have fallen slightly, and the downstream still maintains low inventory levels. Forecast for next week: Propylene glycol prices are expected to continue to decline next week. It is expected that next week’s orders will be gradually delivered, sporadic stocks will increase, and the price of Propylene oxide will start a downward trend year-on-year. The industry’s mentality is slack and wait and see. Negotiated prices are expected to continue to decline.