Propylene oxide market review：This week, the price for propylene oxide is rising slowly by 300 Yuan/ton. After last week’s deep adjustment that the downstream industry tried to supply their stock when the price is low, the factory stock is decreasing, so the ICBC weekly report shows that the number of new deals is moving up slowly. In addition, the market of raw material propylene, chlorine is going better in different degrees which means that the production costs of propylene oxide is staying low. So to a certain extent, the overall profitability of the propylene oxide plant is still considerable at present. On the other side, the downstream demand for polyether is low and unchanged. However, as the May Day holiday is coming and the interregional transport of hazardous chemicals is forbidden during that time, the downstream stocking of the east China is active, which slightly improved the propylene oxide market. So far, in Shandong market the main consulting factory price for propylene oxide is 9000-9100 Yuan / MT while the main acceptance price is 9200-9300Yuan/MT, which reflects that the week average price fell by 9.57%. In East China market the main delivering price is 9200-9350Yuan/ MT, while the acceptance price is 9400-9550Yuan/ MT, which means that the week average price fell by 8.05%.
Methanol Market Review: This week, the mainland market for methanol was depressed. The price for methanol in north-west China reduced as expected but some deals were still considerable. In Guanzhong area, the demand volume of the new price product was large, but some delivery had to cut down the price. The Shandong area was mixed, while the demand in middle north was limited. The price in the south stopped to fall and stayed steady because the downstream needed to supply but less transaction were concluded. The price in Henan area was cut down early this week, but the reduction was limited due to the production costs. The limited demand in Hebei area led to shipping pressure and less deal volume. As of Thursday, the average price for Methanol in Shandong market is 2307Yuan/MT which fell by 6.18% compared to last week. The average price of Inner Mongolia market is 2094 Yuan/MT, which weekly fell by 7.59%.
Dimethyl carbonate market review: This week the domestic market of dimethyl carbonate continued to be depressed. Although the price for raw material, propylene oxide, stopped to decrease but slightly rise, the Environmental pressure of downstream industry remain and the market is still not busy even in busy season. What ‘s more, the rigid demand support is poor and the relative material still come from vulnerable channel, which result in the poor supply of Dimethyl carbonate. For the plants and factories of Dimethyl carbonate, most of them were in stable operation except for the Yulin Chemical. In this Continued downward trading the pressure of manufacturers gradually increased, but the product is fading away from the market center. In this negative atmosphere, the middle and lower reaches remain cautious and there is no intention to let go or supply. Up to now, the main market acceptance price from factory is 4400-4600Yuan/MT, and high-level transaction remains difficult.
Review and Prospect of Unsaturated Resin Market: This week, the domestic unsaturated resin market is light and steady. Supported by the late delivery day, the main raw material market slightly improved by this week, but the stock is still high because the overall lack of support from the upstream. The main unsaturated resin enterprises tended to keep stable production while some small and medium-sized resin enterprises in North China and Fujian were still cutting their production because of the environmental supervision. For the downstream, the rigid demand maintain, but the whole unsaturated resin market stay running lightly. Until Thursday, the overall operating rate of domestic unsaturated resin industry was 37%, which is basically same as the previous stage.
Supply：At present, the Wells devices recovered gradually, while other devices have no clear downtime plans. The manufacturers of propylene glycol and dimethyl ester have a high inventory, so the market stock is abundant next week. However, even the stock is high and the source of material is unstable, changes in production and sales should still be carefully concerned.
Demand: At present, the source of unsaturated resin and raw materials is unstable while the pressure from the environmental supervision remains. And the price gap between propylene glycol and other alcohols is still large, so under the multiple influences the demand volume of propylene glycol will still be large. As for polyether, the demand is partially off season. In addition, TDI products are still weaker than expected, so the demand volume of terminal sponge is limited. As a result, polyether continuously suffered pressure from upward and downward. After the May Day holiday, some plants and factories may attend to supply their stock for rigid demand, but because of the supply and demand contradiction, the expectation for different part demand is still weak.
Raw material: As for methanol, part of the downstream made appropriate replenishment before the holiday. Though the mainland market for methanol decline slightly slowed down, the unbalance between supply and demand is unchanged. With the recovery of the some stopped production line, the overall supply of methanol will increase steadily despite of the maintenance plan in May. If the terminal demand is not significantly improved, the mainland methanol market may still adjust downward. As for propylene oxide, the increase in supply after holiday is a high probability event, but the downstream market is still not optimistic. Therefore, the market was deadlocked, but when the supply increases, it is possible for narrow range in partial high market. In a word, the raw materials market is still weak.
Pharmaceutical Grade: The supply is abundant and some production costs are slightly reduced. But the main downstream market is lightly bleak, so parts of the industry just keep poor expectation.