This week, the domestic epoxy propane market showed a trend of rising and falling. According to the monitoring system of Shengyi Society, as of June 18th, the benchmark price of Shengyi Society’s epoxy propane was 8500.00 yuan/ton, a decrease of 12.37% compared to the beginning of this month (9700.00 yuan/ton).
On the raw material side, the price of propylene has continued to weaken this week. On June 18th, the propylene market in Shandong fell to 7934.33 yuan/ton, a significant decrease of 426.67 yuan/ton from the previous day. The further weakening of raw material support is one of the important factors dragging down the price of epoxy propane. As of June 18th, the benchmark price of propylene in Shengyi Society was 7934.33 yuan/ton, a decrease of 13.14% compared to the beginning of this month (9134.33 yuan/ton).
On the supply side, the centralized maintenance in the early stage once compressed the industry’s capacity utilization rate to 59.58%. But in the middle of the year, Wanhua’s equipment resumed production, and the marginal benefits of maintenance decreased. The current capacity utilization rate has rebounded to over 63%, and the increase in supplier shipments is limited, and inventory pressure has not been effectively alleviated.
Demand side: The traditional off-season in June has significant characteristics. The operating rate of the largest downstream polyether polyol is only about 52.56%, and the end user inventory cycle is prolonged, resulting in slow follow-up of new orders. The prices of polyether and epichlorohydrin continue to invert, and the downstream procurement strategy has shifted to “replenishing inventory with small orders as needed”.
Comprehensive forecast: Analysts believe that in the short term, the epoxy propane market is expected to continue its weak and volatile pattern. Whether the price can stabilize depends on the trend of raw material propylene and the dynamics of equipment maintenance.
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