How does China's propylene glycol supply structure differ from global producers, and what are the implications?

How does China's propylene glycol supply structure differ from global producers, and what are the implications?
Chinese PG prices have entered a steep upward trajectory in 2026, with the benchmark price jumping from around 5,900 yuan/ton in early April to nearly 12,000 yuan/ton by mid-April—roughly a doubling in weeks. Four factors are converging: rising feedstock propylene oxide (PO) costs, with PO up 8.7% in a month to 10,000 yuan/ton; constrained domestic operating rates; strong export demand pulling volumes out of the domestic market; and traders restocking while producers hold back sales. Downstream buyers, fearing further increases, are chasing purchases, creating a self-reinforcing rally. The market has shifted from linear gains to an accelerating price spike, with daily quotes moving up 150-250 yuan/ton across Shandong, East China, and South China.