Introduction: The domestic propylene glycol market was dominated by shocks in the first quarter, with only a short-term upward trend in February. The propylene glycol market declined weakly in January. The raw material cyclopropylene support is limited, and the downstream unsaturated resin is not well started, the terminal demand is sluggish, and the factory has been restarted in the early stage, and the supply is weakened. The terminal is cautiously wait-and-see, and the industry is mainly bearish. , dragging down its market center and continued to fall.
After the Spring Festival, due to the centralized stocking of some terminals and the shutdown of factories in Shandong, the inventory of manufacturers was not under pressure, and they actively pushed up. Propylene glycol ushered in a wave of gains after the festival. Later, with the restart of the parking device and the lower-than-expected recovery of terminal demand, the factory shipments were not smooth, and the inventory gradually accumulated. The cost of raw material cyclopropane also performed poorly, and the enthusiasm for downstream procurement was not high. The propylene glycol factory sells at a profit, lowers the ex-factory price of propylene glycol, and propylene glycol turns into a weak spot.
The propylene glycol market continued to decline weakly in March. The cost support of propylene oxide is limited, and most of the propylene glycol plants are operating stably, and the spot supply is sufficient. In addition, the epidemic situation across the country in March was characterized by multiple distributions, the prevention and control situation was severe, and transportation and circulation in some areas were restricted. The most important thing is that the downstream demand of the terminal has not improved significantly, the pressure of factory inventory has gradually increased, and the factory shipments are not smooth.
In the second quarter, the propylene glycol market may first decline and then rise. According to previous years, as the temperature rises, starting from April, the operating rate of downstream unsaturated resins will gradually increase. The reasons for the weakening of the propylene glycol market in the first quarter of 2022 are not only dragged down by sluggish demand, but also closely related to the repeated and multiple outbreaks of domestic epidemics. The frequent outbreak of the epidemic has led to the increase in transportation management and control. The poor logistics and transportation have made it difficult for propylene glycol manufacturers to ship goods, and the terminal factories have difficulty in purchasing and limited start-up. Therefore, in the next two quarters, we should focus on the domestic epidemic prevention and control situation. If the epidemic prevention and control achieves phased results, the propylene glycol market will be expected to recover, otherwise it will be difficult to significantly improve. It is recommended to pay close attention to the trend of the domestic epidemic and the development of the plant.