Morning Market Briefing for Propylene Glycol

I. Key Points

1. Oct 21: While instability in the Middle East persists, both Russia and Ukraine have hinted at willingness for peace talks, resulting in mixed movements in international crude oil prices. NYMEX WTI futures (December contract) settled at $97.15/bbl, down $0.67/bbl (-0.68% WoW); ICE Brent futures (December contract) closed at $108.82/bbl, up $0.03/bbl (+0.03%). China INE crude oil futures (December 2026 contract) fell by 26.5 to 700.8 CNY/bbl, with the night session dropping a further 10.5 to 690.3 CNY/bbl.
2. Raw Materials: Today, mainstream propylene oxide (PO) plants quoted new orders at 11,300 CNY/ton (ex-works, wire transfer).
3. Supply: Limited news regarding plant operational fluctuations; supply remains relatively sufficient.
4. Downstream Trends: Unsaturated resin market is primarily consolidating; polyether spot market is stagnant and slightly weak.

Core Logic: The PO market lacks sufficient bullish support due to raw material dynamics, while downstream buyers maintain a wait-and-see attitude. However, the downward trend in propylene may slow, suggesting limited downside space for PO. Regarding the Propylene Glycol (PG) market, on-site inventory pressure among producers is limited, and some are shipping based on pre-placed orders. However, buying sentiment for new orders is weak, with customers largely adopting a wait-and-see approach. Coupled with further declines in raw material PO prices, support for the PG market is insufficient.

II. Price Table

Notes:

1. PG and DMC are industrial grade.
2. Prices are in RMB, unit: CNY/ton.
3. Pricing basis: PG and DMC are ex-works acceptance of bank drafts; PO and polyether are ex-works cash settlement; unsaturated resin is factory pickup.
4. The two price points represent snapshot prices from the previous two working weeks before this week, not weekly averages.
5. Change rate refers to the period-over-period percentage change.

III. Market Outlook

On the previous trading day, PG market prices fluctuated within a range. Regarding raw materials, current bullish factors for PO are insufficient, and prices are expected to continue declining. However, propylene prices may stabilize, leading to an expectation that PO will adjust narrowly downward today before easing off. In the PG market, transaction volume for new orders was average. Although supply is relatively sufficient and producer pressure is limited—with some factories shipping against existing orders—market confidence is lacking, and customers remain inclined to wait and see. Short-term, domestic PG prices are expected to follow PO lower within a narrow range. Specific attention should be paid to today's PG transaction activity and raw material volatility.

Notes:

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