The epoxy propane market showed a trend of first rising and then falling in May. According to the monitoring and analysis system of Shengyi Society, the mainstream price in Shandong was 7325 yuan/ton at the beginning of May. On May 16th, the price had reached a high point of 7725 yuan/ton, an increase of 5.46% compared to the beginning of the month. In late May, the trading atmosphere of epoxy propane gradually weakened, and the price fell. As of May 29th, the mainstream price in Shandong was 7343.33 yuan/ton, an increase of 0.25% from the beginning of the month. At present, the market lacks favorable factors, and it is expected that the epoxy propane market price will remain stable with a narrow range of consolidation next month.
Price influencing factors:
Supply side: Due to the continuous losses of many epoxy propane production enterprises last month, some enterprises reduced their losses and stopped production, resulting in tight spot supply after the May Day holiday. In addition, in mid May, the mentality of epoxy propane manufacturers improved due to the reduction of “equivalent tariffs” between China and the United States, and the willingness of enterprises to raise prices remained strong, leading to a continuous upward trend in the market. However, in late May, there was significant pressure on epoxy propane shipments, high inventory levels were under pressure, and destocking pressure was high, resulting in a downward trend in the price center.
Raw material side: The market price of raw material propylene has fluctuated downward, providing weak support for the cost of epoxy propane. According to the market analysis system of Shengyi Society, as of May 29th, the benchmark price of propylene in Shengyi Society was 6560.75 yuan/ton, a decrease of -0.15% compared to the beginning of this month (6570.75 yuan/ton).
Demand side: The downstream polyether market has a good trading atmosphere after the May Day holiday, and the enthusiasm for replenishment has increased. In the middle of the month, due to the impact of tariff policies and the peak season of terminal demand, procurement enthusiasm has increased, and the market center of gravity has risen. After the centralized replenishment of terminals in the latter half of the year, they are in a state of clearing inventory, and the enthusiasm for market inquiries has decreased, with the market focus mainly declining.
Market forecast:
Business Society’s epoxy propane analyst believes that currently, downstream demand growth is limited, market trading atmosphere is cold, and demand support is insufficient. In addition, the cost side propylene market is showing a weak consolidation trend, and it is expected that the epoxy propane market will continue to be mainly weakly consolidated in June. More attention should be paid to changes in raw material prices and downstream supply and demand.
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