On August 30, the domestic  Propylene oxide market rose sharply, with the market price at RMB9467/ton, up RMB300/ton from yesterday. The recent domestic epichlorohydrin device start-up low downward, temporary shutdown and maintenance device increase, the market supply suddenly tighten, supply favorable, strong support. Although the recent raw material propylene and liquid chlorine market to maintain stability is weak, the cost support is weak, but the downstream and terminal market demand is still weak, the market transactions are general, most of the downstream plants to maintain just purchase, but the current low inventory of cyclopropane plant, cyclopropane manufacturers ship smoothly. Therefore, with the favorable support of tight supply of cyclopropane and low factory inventory, the market price of propylene oxide rose sharply today. As of the press release, the mainstream remittance price in East China is RMB9300-9500/ton; the mainstream exchange negotiation price in Shandong and North China is RMB9400-9500/ton; the mainstream exchange negotiation price in South China is RMB9400-9600/ton.

On the supply side: Recently, domestic ring devices started to run at low levels. In addition to the regular shutdown maintenance devices have not yet resumed, the number of temporary shutdown maintenance devices increased, the market supply suddenly tightened, ring C manufacturers shipped smoothly, factory inventory fell to a lower level, manufacturers hold a higher price willingness to supply favorable, strong support.

Demand: In August, the cyclopropyl industry chain products did not attract the “golden nine silver ten” as expected in the traditional peak season, the downstream market demand is still at a weak level, the market demand is not obvious volume. During this period, the downstream side of the cyclopropyl party has concentrated on purchasing several times, market transactions have picked up slightly, but the improvement in market demand has not lasted long.

Inventory: In August, in addition to the regular shutdown of maintenance devices, the domestic epichlorohydrin short-term shutdown and maintenance and load shedding devices increased, the overall domestic epichlorohydrin construction level was low and the market supply continued to be tight. Under the general market demand, the inventory of epichlorohydrin plants has been kept at a low level.

Cost: This month, the raw material propylene market lacks positive support, the market price is weak to drop, liquid chlorine market fluctuates by the impact of changes in supply and demand, the overall upward trend, chloranol method production costs increased, but the growth is limited, the raw material end support general.

Profit: In August, the domestic propylene oxide market was affected by the weak demand, and the market price was obviously affected by the supply side and raw material side. The market price fluctuated closer to the cost line of the chlor-alcohol method, and the chlor-alcohol method cyclopropene manufacturers had some profit margin, while most of the other processes were in a loss-making state. As a result, in August, cyclopropene prices fluctuated close to the cost line and cyclopropene margins have been compressed to a lower level.

Recently, the domestic cyclopropene construction level is low, temporary shutdown for maintenance equipment has increased, and the market supply has suddenly tightened. In addition, a large plant in South China plans to stop production and maintenance for about a week in early September. Although a large factory in Tianjin’s Cipropylene rubber plant is expected to resume on September 1, there are no plans to restart other maintenance units, and future supply is still favorable for support. Although the recent downstream and end market demand has not improved, most downstream factories only need to enter the market to make purchases, but with the favorable support of the reduced supply of cyclopropyl rubber and low factory inventory, cyclopropyl rubber factories hold a fairly high price willingness, and the cyclopropyl rubber market is expected to remain strong tomorrow with price fluctuations of 0~100 yuan/ton.

Chemwin is a chemical raw material trading company in China, located in Shanghai Pudong New Area, with a network of ports, terminals, airports and railroad transportation, and with chemical and hazardous chemical warehouses in Shanghai, Guangzhou, Jiangyin, Dalian and Ningbo Zhoushan, China, storing more than 50,000 tons of chemical raw materials all year round, with sufficient supply, welcome to purchase and inquire. chemwin email: service@skychemwin.com whatsapp: 19117288062 Tel: +86 4008620777 +86 19117288062