This week, the domestic epoxy propane market showed a trend of high-level decline. As of August 12th, the benchmark price of epoxy propane in Shengyi Society was 9066.67 yuan/ton, a decrease of -1.45% compared to the beginning of this month.
Raw material side: Cost support has been strengthened. This week, international oil prices fluctuated upward due to geopolitical factors, and the price of raw material propylene continued to rise. On August 11th, it closed at 8340 yuan/ton, an increase of 150 yuan/ton from the previous day. However, the epoxy propane industry is still in a loss making state, with an average weekly comprehensive profit of -357.44 yuan/ton for the chlorohydrin method. The high cost and low selling price create a double squeeze. As of August 12th, the benchmark price of propylene was 8251.00 yuan/ton, an increase of 4.08% compared to the beginning of this month (7927.67 yuan/ton).
Supply side: The device surface fluctuates frequently. On August 11th, the utilization rate of domestic epoxy propane production capacity was only 60.25%. The growth of market commodity volume is limited.
Demand side: Poor downstream transmission is the core factor causing the price drop this week. The polyether market is in a mixed phase of peak and off peak seasons. Although the favorable supply of raw material cyclopropane has driven up prices, the high prices have weakened downstream purchasing enthusiasm. Downstream reduction follow-up, resistance to high prices, and weak trading atmosphere.
Comprehensive forecast: In the short term, the strong operation of raw material propylene still provides support for the cost side, but downstream demand follow-up is weak and high price resistance still exists. The market may continue to stabilize in the short term. Focus on the dynamic maintenance of equipment and changes in downstream procurement pace.
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