I. Key Focus Points
① 11/12: The outlook for US-Iran relations remains uncertain, sustaining market concerns over supply risks and driving up international crude oil prices. NYMEX WTI crude oil futures (December contract) rose by USD 2.21/bbl to USD 88.74/bbl, a day-on-day increase of +2.55%; ICE Brent crude oil futures (January contract) rose by USD 3.06/bbl to USD 95.82/bbl, a day-on-day increase of +3.30%. China INE crude oil futures (January 2027 contract) fell by CNY 11.8 to CNY 595.9/bbl during the day session, but rebounded by CNY 14.6 to CNY 610.5/bbl in the night session.
② Cost Support Slightly Weakened: Feedstock propylene prices declined, while liquid chlorine prices stabilized after falling. Overall production costs remained stable with a slight downward trend. Volatility in crude oil prices influenced market sentiment.
③ Downstream Caution Resurfaces: Downstream demand saw some follow-through purchases mid-week. Currently, spot buyers are adopting a wait-and-see approach due to limited cost support, resulting in mixed market sentiment.
Core Logic: After a brief stabilization, market negotiations shifted lower again. Downstream participants exhibit mixed attitudes; some have followed the price drops, while others remain in a holding pattern, waiting for clarity.
II. Price Table
| Product | Market Name | 2026/11/11 | 2026/11/12 | Change | % Change | Unit |
|---|---|---|---|---|---|---|
| Propylene | Shandong | 10,450 | 10,425 | -25 | -0.24% | CNY/ton |
| Liquid Chlorine | Shandong | 450 | 300 | -150 | -33.33% | CNY/ton |
| Propylene Oxide (PO) | Shandong | 11,050 | 10,750 | -300 | -2.71% | CNY/ton |
| Soft Block Polyether | Shandong | 11,500 | 11,450 | -50 | -0.43% | CNY/ton |
| Propylene Glycol (PG) | Shandong | 9,425 | 9,300 | -125 | -1.33% | CNY/ton |
| Dimethyl Carbonate (DMC) | Shandong | 4,675 | 4,450 | -225 | -4.81% | CNY/ton |
| Propylene Glycol Methyl Ether (PME) | East China | 11,850 | 11,850 | 0 | 0% | CNY/ton |
III. Market Outlook
Yesterday, the domestic Propylene Oxide (PO) market continued its steady downward adjustment. There were minor operational fluctuations at certain supply-side plants, but their impact was limited. Active producers faced sluggish shipments, leading to further negotiation on price reductions. Some improvement in sentiment was observed in northern regions, which partially transmitted to other areas, whereas southern markets did not fully follow the magnitude of the decline. Contract deliveries dominated trading activity. Cost support weakened slightly compared to previous periods; although margins improved somewhat, producers remain in a loss-making position. Downstream players are monitoring market dynamics from the sidelines, awaiting feedback from end-users or aligning their purchasing decisions accordingly.
IV. Data Calendar
| Data Indicator | Release Date | Current Period Value | Next Period Trend Forecast |
|---|---|---|---|
| Weekly PO Capacity Utilization Rate | Thursday 17:00 PM | 68.26% | ↗ |
| Weekly Polyol Capacity Utilization Rate | Thursday 17:00 PM | 53.70% | ↗ |
| Weekly PG Capacity Utilization Rate | Thursday 17:00 PM | 53.24% | ↘ |
Comments
0