In the first quarter, due to the impact of the COVID-19 public health incident, first of all, the internal downstream equipment was slow to resume work, and demand support was limited. Manufacturers mostly adopted strategies such as burden reduction, parking and export port collection to relieve supply pressure; and after the domestic market resumed gradually, it was affected by public health incidents. The impact of the spread of the impact, the sharp drop in demand in overseas markets, the frustration in the export of propylene glycol and terminal products, the weak domestic demand, leading to the continued supply oversupply situation, and the raw material cyclopropylene has also become a downward trend, the cost is negative, and the propylene glycol market as a whole is weak. Mainly presents a downward trend of shocks. At the end of March, the decline increased and the bottom was fast. The average price in the first quarter was 6874.03 yuan/ton acceptance factory, which fell 2.15% from the previous quarter and 14.98% last year.
In the second quarter, the propylene glycol market fluctuated up and down obviously. First of all, in early April, propylene glycol accelerated to the bottom and reached a historical low. After being boosted by the rebound of raw materials, the middle and lower reaches entered the market to collect bottoms, ushering in a rebound. In addition to the clear holiday, propylene rose sharply and fluctuated violently. Propane-propylene glycol-polyether industry chain manufacturers have mostly reduced their negatives, waited and closed, and the price of evaluation has also increased significantly. Then the price of propylene returned to rationality. The transaction in the propylene glycol market was slowly revealed, and the price retreated. The demand side gradually entered the market and followed up. After mid-April The main focus is on delivery orders from manufacturers, low inventory support, increased willingness to explore some sources, upward price quotation, widening spreads, supply-side support, and pre-holiday inventory, propylene glycol has once again explored higher levels. During the May 1st holiday, the Shida plant stopped and the supply side pushed up again. Propylene glycol entered a high level in the first half of the year. However, as the downstream price conflicted with high prices, new orders decreased, the manufacturer’s discharge cycle was shortened, propylene glycol was blocked, and the high level weakened; the market sentiment turned The supply side let the profit negotiate to accept the order. At this time, some of the holders profited from the shipment, and the downward trend of the propylene glycol market accelerated and entered a relatively low level again at the end of May. At the beginning of June, the market in April was copied. At low prices, manufacturers actively allowed profits to negotiate shipments, and middlemen concentrated on entering the market to fill positions. Although the price did not reach the downstream acceptance level, but the rebound market, the downstream also entered the market to chase up, high costs, loss of device profits Propylene glycol stocks are supported at a low level, and manufacturers’ willingness to pull up in the market has increased, which has propelled propylene glycol to a rapid upward trend. The average price in the second quarter was RMB 6,827.12/ton, down 0.29% from the first quarter and 12.51% from the second quarter of last year.
From the supply side, the production trends of propylene glycol have been relatively consistent in recent years. The devices started and stopped more frequently in the first half of the year, and the product supply was slightly lower than the supply level in the second half of the year. With the recovery of the market, the overall construction load has also increased, and the supply has slowly increased; affected by the public health incident in February, the downstream recovery has been slow. Under the pressure of inventory, the supply side has reduced the burden and stopped to cope with the pressure. With the downstream start in March, Propylene glycol supply is also gradually increasing, but the downstream downturn and overseas markets are limited, shipments are not smooth, and the overall start-up load slightly decreased. According to statistics, the production of propylene glycol in the first half of 2020 was about 175,700 tons, a decrease of 9.91% compared with the second half of 2019, and an increase of 2.70% compared with the first half of 2019.