Where Will Propylene Glycol Go in the Future - August Analysis
In August, the propylene glycol was coexisting, mainly due to cost and supply. From the beginning of the month, ￥7,300/MT to ￥7,400/MT, the overall increase of ￥100/MT, but the highest market price in Shandong reached ￥7800/MT, the following details the specific reasons for this rise and fall.
The price trend of propylene glycol and propylene oxide basically tended to be the same. From August 6th, the price began to increase. Due to the influence of typhoon “Litchma”, propylene oxide Shandong Jinling was forced to stop for maintenance due to stagnant water, plus again Prior to the decline in Binhua, the supply continued to decrease, accelerating the upward price of propylene oxide and supporting the cost of propylene glycol.
Also, due to the influence of the typhoon “Litchma”, the main plant equipment of propylene glycol was also reduced and stopped. On August 11th, Shidasheng Huajining Plant, Dongying Haike and Shandong Wells successively stopped, and the supply in the market plummeted. During the period, the price of propylene glycol was raised from ￥7,500/MT to ￥7,800/MT. Shida and Haike drove two days later. Shandong Wells drove a week later, and the increase was at ￥300/MT. The inventory was in a lower position, so stepping into In the latter half of the year, the cyclopropane was deadlocked and there was no significant change in propylene glycol.
Near the end of August, Cyclopropene started construction in Shandong Jinling, coupled with poor downstream demand, prices have dropped sharply, and propylene glycol has also been reduced due to lower costs. On the 24th, the Shidasheng Huayu mine was parked, and the supply in the market decreased again. In the short term, propylene glycol is still stable and moderately downward. Where will the future propylene glycol go, and whether the price will continue to fall, it is necessary to pay close attention to changes in the supply and demand side.
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