Downward trend in the range; wait and see regarding raw materials

1. Daily Summary

① No equipment fluctuations reported today.

② On the raw materials side, the mainstream quoted price for propylene oxide (PO) from major domestic plants was 11,350 RMB/ton (ex-works, cash settlement), a decrease of 300 RMB/ton compared to the previous working day.

2. Spot Market Overview

Table 1: Domestic Propylene Glycol (PG) Industry Chain Price Summary (Unit: RMB/ton)

Based on the Shandong region as the benchmark, the closing price for PG in Shandong today was 8,925 RMB/ton, reflecting a month-on-month decline.

Prices in the Shandong market edged lower within a narrow range. Market sentiment remained sluggish due to weak cost support, with operating factories actively seeking orders and shipping goods. In the East China market, prices fluctuated slightly within a narrow band; downstream buyers adopted a wait-and-see approach while meeting essential demand. The South China market trended weaker, with participants closely monitoring developments in the Shandong market.

3. Production Dynamics

The capacity utilization rate for PG stood at approximately 50%. Output increased compared to last week, while profitability declined relative to the previous week.

4. Market Sentiment

Table 2: Domestic PG Upstream and Downstream Participant Sentiment Forecast

5. Price Forecast

Looking ahead, on the raw materials side, shipment volumes for Propylene Oxide (PO) have not shown significant improvement. Plants are under pressure, suggesting potential for further downside movement. Attention should be paid to transaction performance over the weekend. Regarding the PG market, participant sentiment remains somewhat divided. Some observers note that current prices have fallen to stage-specific lows and the spread between PG and PO has widened, leading them to delay restocking. Others anticipate further declines in raw material prices and prefer to wait for lower levels before purchasing. Most suppliers are actively taking orders while monitoring inventory levels. It is projected that PG market prices will remain weakly stagnant or slightly soft. Continuous tracking of plant operations and raw material price trends is recommended.

6. Related Product Status

Unsaturated Resin Market: Using the Jiangsu region as the benchmark, the closing price for Unsaturated Resin 196# today was 11,400 RMB/ton, stable compared to yesterday, aligning with morning expectations. The domestic unsaturated resin market remained largely steady. Factory ex-works quotes from domestic enterprises were unchanged. The spot market focused on digesting recent gains, with cost support across the industry chain weakening as most upstream raw materials declined. Traders primarily negotiated sales, while downstream procurement maintained essential demand levels. Transactions at higher price points were scarce, resulting in a subdued trading atmosphere.

Polyether Market: Spot prices dropped significantly. Holders adjusted their quotes downward in line with falling costs, actively negotiating sales. End-users continued to purchase based on immediate needs. The overall trading atmosphere remained weak, with most participants adopting a cautious wait-and-see stance. Key focus areas include downstream entry sentiment and news regarding raw materials.

7. Data Calendar

Table 3: Domestic PG Data Overview (Unit: Tons)