Introduction: After a slump for nearly 2 months, propylene glycol finally changed its weakness in August and ushered in a turnaround.
From the supply side: Although some factories that were suspended in the early stage have resumed production, inventory accumulation still takes time. Others have received orders well, and there is no current pressure on inventory. The overall inventory in the market is gradually depleted, and it isn’t easy to find low-priced goods in the market. Under this circumstance, the price of propylene glycol in the early stage of the superposition was low, and the factory’s profit was weakened. Now the manufacturer is mainly motivated and actively raised its ex-factory price.
From the perspective of cost: the recent increase in imported cargoes of propylene oxide in East China. On the demand side, the downstream orders are light and followed up carefully, and the northern factories’ inventory is slow, low, and controllable. The supply in East China is more abundant than before. The short-term is expected to be a game between the supply and demand sides. If the market sentiment changes little, or the stalemate weakens. The raw material cyclopropane continued to be weak, and the cost support was slightly soft.
From the perspective of demand: most resin raw material markets are weakly adjusted, and the cost support is limited; in terms of terminal demand, at this time, it is in the high-temperature off-season, and the recovery of the terminal market is not good, and the overall demand remains light. The comprehensive start of resin manufacturers continued to be at a low level. Overall, the short-term domestic unsaturated resin market is running weakly and steadily. The terminal demand is challenging to improve, and most purchases are currently maintained.
Conclusion: Although there is no pressure on the supply of propylene glycol, manufacturers are actively pushing the price. However, when the downstream demand is weak, there is a slight “increase against the trend.” Many industry players are cautious about the market outlook, and the enthusiasm for entering the market is not high. In the short term, domestic propylene glycol may continue to be in a narrow range, but the increase may be limited. Specifically, there may be further evidence until the middle and late August, when the “Golden September” season is approaching. Warming expectations.