Morning Market Briefing for Propylene Glycol

I. Key Focus Points

1. Oct 20: The market continues to assess the prospects for U.S.-Iran dialogue, with concerns over supply risks slightly easing and international crude oil prices declining. NYMEX WTI November futures settled at $101.79/bbl, down $1.87 (-1.80%); ICE Brent December futures settled at $108.79/bbl, down $0.76 (-0.69%). China INE crude oil futures (December 2026 contract) rose by RMB 8.5 to RMB 727.3/bbl during the day session but fell by RMB 32.5 to RMB 694.8/bbl in the night session.

2. Raw Materials: Mainstream propylene oxide (PO) plants quoted new orders at RMB 11,400/ton (ex-works, telegraphic transfer).

3. Supply: Limited news on plant unit fluctuations; supply remains relatively ample.

4. Downstream Dynamics: Unsaturated resin markets are consolidating; spot polyether markets remain stale as buyers wait.

Core Logic: The raw material PO market experienced slight softening within a narrow range. Some units in Shandong underwent adjustments, leading to sluggish shipments over the past two days and partial inventory buildup. In northern regions, actual transaction prices saw some downward flexibility, while southern markets relied primarily on contract deliveries with sparse spot trading. Overall, the market is trending sideways with weak momentum. Regarding propylene glycol (PG), some suppliers slightly lowered their quotes. Although manufacturers still have order backlogs providing support, the atmosphere for new spot transactions is mediocre, with strong wait-and-see sentiment among traders. Attention is focused on today's raw material price trends and new order quotes.

II. Price Table

Notes:

1. Propylene Glycol and Dimethyl Carbonate are industrial grade.
2. All prices are in RMB per ton.
3. Pricing basis: Propylene Glycol and Dimethyl Carbonate are quoted ex-works on acceptance terms; Propylene Oxide and Polyether are quoted ex-works on cash-on-delivery terms; Unsaturated Resins are quoted ex-factory pickup.
4. The prices represent point-in-time values from the previous two working weeks prior to this week, not weekly averages.
5. Change rate refers to the period-over-period percentage change.

III. Market Outlook

On the previous working day, domestic propylene glycol prices traded in a slightly weaker range. Regarding raw materials, current and future incentives for propylene oxide were insufficient, cost-side support weakened, and downstream procurement volumes decreased. Market sentiment was neutral, suggesting a slight downward trend for PO. For the PG market, demand for new orders was average, and signs of softening in raw material PO strengthened wait-and-see sentiment. Traders are closely monitoring today's raw material price movements and intra-day volatility. Overall, the domestic PG market is expected to trade in a slightly weak, fluctuating range.

IV. Data Calendar

Notes:

1. ↓↑ indicates significant volatility, highlighting data dimensions with changes exceeding 3%.
2. ↗↘ indicates narrow-range volatility, highlighting data dimensions with changes between 0% and 3%.