In just three days, the price of propylene glycol rose from the 12,500 yuan/ton against acceptance EXW before the holiday to 14,000 yuan/ton, an increase of 1,500 yuan/ton, and the spot was hard to find.
The current price increase is concentrated on the supply side, demand side and cost side.
Supply side: domestic inventory is controllable, foreign installations are unexpected.
During the Spring Festival, domestic factories in Wells stopped production, Zhejiang Railway Gale stopped production, Dongying Shunxin stopped production, Yunhua Green Energy stopped production, Tongling Jintai stopped shortly, and Depu’s small installations stopped, the overall market load was not high, and the short Spring Festival holiday did not Did not bring excessive inventory pressure to the supply side. Although Wells and Zhejiang Railway drove in strong wind after the holiday, Yunhua Green Energy plans to drive in the near future, and Shunxin is expected to drive next week, but Depp also expects to stop in the near future, and the supply-side inventory is currently controllable, and good news is still released.
At the same time, the United States has recently encountered extremely cold weather. According to market news, Leander, Dow and Huntsman in Texas in the United States have been affected to varying degrees. While forming a certain degree of favorable support for exports, it has also formed a market mentality. Great boost. According to market news, overseas propylene glycol manufacturers seized this opportunity to seize the time to seize the market. According to the research of Zhuo Chuang Information, the current domestic propylene glycol import source has basically been completely cut off, which has once again consolidated the domestic propylene glycol market price increase.
Demand side: both rigid and speculative demand released at the same time.
On the demand side, after the Spring Festival, both rigid and speculative demand should be released. Before the Spring Festival, the price was basically stable at 12,500 yuan/ton. The factory and the downstream factories and traders at high prices are more cautious and wait-and-see. After the Spring Festival, under the stimulus of multiple positives, traders entered the market to stock up, and the rigid demand of downstream factories was released in a short time.
Cost side: raw materials take the lead in rising, and cost support is good
After the Spring Festival, the raw material propylene oxide took the lead in the market. After the Spring Festival, the downstream polyether manufacturers of propylene oxide received considerable orders, and the demand for cyclopropyl is strong. The inventory of cyclopropyl manufacturers is generally low and there is no operating pressure. Since the fourth day of the Lunar New Year, the price has risen to 17,000. -17,100 yuan/ton cash delivery, the cost is strongly supported by propylene glycol.
In summary, under the multiple stimulus of supply, demand and cost, the propylene glycol market still maintains a high-speed price increase trend. According to the current survey, most of the traders and downstream companies are hard to find spot product, and the overall manufacturers close offer and waiting the market to increase. It is expected that the price of propylene glycol will still have margins to rise, or it may break through the previous historical high of 15,000 yuan/ton to form a new high.
Please contact us at exp1@gzchem.com / info@gcresin-paint.com for more information. 2021-2-20