Morning Market Insight: Domestic Propylene Oxide (PO)

I. Key Focus Areas

① September 23: Iran stated that it is not in a rush to initiate negotiations until relevant conditions are met, and the Strait of Hormuz remains closed for now, driving up international crude oil prices. NYMEX WTI crude oil futures (November contract) settled at $92.16/barrel, rising by $1.64 (+1.81%). ICE Brent crude oil futures (November contract) settled at $103.08/barrel, rising by $3.83 (+3.86%). China INE crude oil futures (November 2026 contract) fell by 22 yuan to 695.1 yuan/barrel during the day session, but rose by 34.9 yuan to 730 yuan/barrel during the night session.

② Stable cost support: Feedstocks propylene and liquid chlorine rebounded slightly after declines or stabilized, maintaining steady cost support. Crude oil fluctuations continue to influence market sentiment.

③ Downstream caution persists: After moderate follow-up buying ahead of the holiday, downstream demand sentiment has cooled again, with participants adopting a cautious stance.

Core Logic: The market slowed its downward trend after consecutive declines; however, sustained purchasing from downstream appears limited for now. Market players are consolidating positions, with today’s actual transaction volume being the key focus.

II. Price List

III. Market Outlook

Yesterday, the domestic propylene oxide (PO) market remained stable but showed signs of weakness. Supply-side facilities operated steadily, while shipments from producing plants softened, leading to renewed indications of negotiable prices. However, trading activity was sluggish, and mainstream prices held firm. Currently, propylene is trading weakly, limiting cost support. After initial restocking by downstream buyers early in the week, cautious sentiment has returned, causing the market to consolidate. Attention is focused on feedback from actual transactions today.

IV. Data Calendar