"Rising again" after high level adjustment of Chinese Propylene Glycol in early March

Till March 11, the factory price of industrial grade Propylene Glycol was RMB 16166 / ton, and the average price increased by 743 RMB / ton, or 4.75% compared with the reference price of 15433 RMB / ton on March 1.

After the Chinese new year holiday in February, the domestic propylene glycol market rose sharply, up nearly 18% in half a month. In March, with the commencement of Chongqing Dongneng New Energy propyl glycol and the operation of a large propylene glycol plant in Dongying, Shandong Province, the supply of propyl glycol increased and the price entered a high level adjustment. The price of propylene glycol in some areas fell by 200-500 RMB / ton. On the 5^th.Mar, the reference transaction price of propylene glycol in Shandong Province was around 14800-15500 RMB / ton. Supported by the rising cost of raw material propylene oxide, propylene glycol market fell limited, and the overall market was stable.

 On the 8th of this week, we heard that the shutdown of a big raw material plant affected the operation of propylene glycol plants. The supply sources from the raw material plant were reduced. The low-end price of propyl glycol market was increased by 200-400 RMB / ton. The market delivered more foreign trade orders. The inventory of Shandong and other propylene glycol plants basically remained low, and the sales pressure was small. On the 9th, the overall market of propylene glycol continued to rise in a narrow range At present, as of the 11th, the price of domestic industrial grade propyl glycol has risen to 15800-16500 RMB / ton, with an average price reference of 16166 RMB / ton. Compared with the price on the 5th, the price has been adjusted back to 833 RMB / ton. Compared with the price on the 1st, the overall price has increased by 733 RMB / ton, or 4.75%.

Entering this week, propylene oxide, the raw material, has once again boosted the rise, giving more support to the cost of propylene glycol. The current market fundamentals of propylene glycol remain stable. Although the user's inquiry continues and the cautious attitude remains unchanged, under the increasing cost pressure, it is expected that the price of propylene glycol will fluctuate in the high range in the short term, and the possibility of a sharp decline is small. The specific trend still needs to pay close attention to the raw material cyclopropane and changes in supply and demand.