Raw materials are rising, spot prices are tight, and propylene glycol is experiencing a “surge”

According to data, as of November 19, the ex-factory price of domestic industrial grade propylene glycol referenced 12,466 yuan/ton. Compared with November 17, the average price increased by 1,800 yuan. Yuan/ton, an increase of 16.87%; compared with November 1st, the average price increased by 3130 yuan/ton, an increase of 33.57%.

Raw materials are on the rise and spot prices are tight, propylene glycol is experiencing a “surge”

At the beginning of the month, the domestic industrial-grade propylene glycol market was affected by the sharp decline in the raw material propylene oxide, and the price fell slightly. Falling, the market sentiment is not good. Starting from the second week of November, the market trend of raw material propylene oxide rebounded, and the price increase of propylene glycol continued to increase due to the impact of cost. Until the middle of this week (18th), the ex-factory quotation of domestic industrial-grade propylene glycol increased significantly again, ranging from 1,000 to 2,500 yuan/ton. The reason for the surge is, on the one hand, the strong cost support provided by the strong increase in the raw material propylene oxide, and on the other hand, the recent increase in foreign trade orders, the shortage of spot goods in the market, and the difficulty in finding an order. According to relevant industry sources, the current supply of propylene glycol in the market basically relies on ” “Grab it”, there is basically no stock in the venue.

Currently, as of November 19, the ex-factory price of domestic industrial grade propylene glycol is 12,466 yuan/ton. Compared with November 17, the average price has increased by 1,800 yuan/ton, an increase of 16.87%; compared with November 17, Compared with the 1st, the average price increased by 3130 yuan/ton, an increase of 33.57%.

On the upstream side, since the beginning of this week, the market for raw material propylene oxide has been on a strong upward trend. According to data, as of November 19, the average price quoted by propylene oxide companies was 18,033 yuan/ton, an increase of 16.84% compared with last weekend (November 15). At present, there is no pressure on the propylene oxide factory inventory, with partial control. The terminal downstream raw material inventory is low, and the willingness to replenish is strong, which supports the rise in propylene oxide prices. The current mainstream quotation in the propylene oxide market in Shandong is around 17,500-19,000 yuan/ton.

The inventory pressure is small and propylene glycol is mainly running at a high level in the short term

At present, there is basically no inventory pressure on domestic industrial grade propylene glycol, with strong raw material support and good fundamental performance. However, the hidden dangers caused by the sharp rise cannot be ignored, and fear of high prices may gradually arise in the downstream, forming a cautious wait-and-see situation. Therefore, analysts believe that in the short term, the propylene glycol market will continue to be unable to rise, and the overall high and stable operation will be the main trend.