Prices remain elevated, leading to a further decline in customer purchasing activity.

1. Daily Summary

① LiHuayi and Qingdao Alkali Industry have shut down their units, while DePu Phase II has reduced operating loads. Consequently, propylene glycol (PG) operating rates have fallen to low levels. Strong supply-side support remains evident, and manufacturers are maintaining a firm pricing stance.

② On the raw materials front, market prices for propylene oxide (PO) are expected to stabilize, providing ongoing cost support.

③ Downstream buyers are observing price declines in other raw materials and show poor acceptance of high-priced PG, leading to a further weakening in trading activity today.

2. Spot Market Overview

Table 1: Domestic Propylene Glycol Supply Chain Price Summary (Unit: CNY/ton)

Based on the Shandong region as a benchmark, today’s PG transaction prices in Shandong ranged from 9,000 to 9,900 CNY/ton, remaining stable compared to the previous period.

Regarding regional markets:

• Shandong: Prices remained stable. While new orders were generally average, reduced operating rates and scheduled shipments meant there was no immediate inventory pressure.
• East China: The overall trend held steady, but buying interest continued to cool down compared to yesterday.
• South China: Prices ran at high levels. Downstream buyers followed up with limited rigid demand, resulting in a subdued trading atmosphere.

3. Production Dynamics

Last week, the capacity utilization rate for domestic PG was around 60%. Output increased slightly, but profitability declined significantly.

4. Market Sentiment

Table 2: Domestic Propylene Glycol Upstream and Downstream Stakeholder Sentiment Expectations

5. Price Forecast

Looking ahead, PO prices are expected to stabilize after recent declines, providing some cost support, though its strength is limited. Currently, strong supply-side support keeps PG manufacturers free from short-term shipping pressure, reinforcing their willingness to maintain prices. However, market buying sentiment for new orders remains weak, and the broader chemical futures sector is sluggish, dampening industry sentiment. Overall, given the clear short-term supply support, PG prices are projected to remain primarily stable. Key factors to watch include the supply-demand tug-of-war and the price trajectory of upstream PO.

6. Related Product Updates

• Unsaturated Resin Market: Based on the Jiangsu region, today’s 196# unsaturated resin closed at 10,800 CNY/ton, a decline from yesterday, aligning with morning expectations. The domestic unsaturated resin market is characterized by fluctuating downward trends. Manufacturer ex-works quotes saw stable-to-declining adjustments ranging from 100 to 550 CNY/ton. As raw material prices gradually fell, cost support weakened, driving spot quotes lower. Traders adjusted prices in line with the market. Under a "buy on rise, wait on fall" mentality, downstream buyers remained mostly in observation mode with little purchasing intent, keeping overall trading activity light.

• Polyether Market: Spot prices dropped significantly across a wide range. Holders actively negotiated to push sales. Expectations of further declines in raw materials persisted, leading to low entry enthusiasm among traders and deepened wait-and-see attitudes among downstream users. Actual transactions were rare. Key focus areas include downstream market psychology and raw material news.

7. Data Calendar

Table 3: Domestic Propylene Glycol Data Overview (Unit: Tons)