According to the monitoring data of the business community, as of January 7, the reference ex factory price of domestic industrial grade propylene glycol was 12500 yuan / ton, which was increased by 1167 yuan / ton or 5.88% compared with January 1 (reference price was 11333 yuan / ton), and decreased by 133 yuan / ton or 1.06% compared with December 1 (reference price was 12633 yuan / ton).

Low start-up cost supports propylene glycol’s upward trend in the first week of January

After the new year’s Day festival, the domestic industrial grade propylene glycol market ushered in a rise. The trend of raw material propylene oxide after the festival was stable and upward, which gradually gave strong support to the cost of propylene glycol. At present, some production plants of propylene glycol are in low start-up or shutdown maintenance status, the overall inventory of propylene glycol is low, and the supply is tight. Although the downstream is purchased on demand and there are not many large orders, the current supply of propylene glycol is tight Due to less pressure, propylene glycol factories and secondary market have increased the ex factory price of propylene glycol by 300-800 yuan / ton. The ex factory price of propylene glycol in Shandong Province refers to 12000-13100 yuan / ton (loose water). As of January 7, the ex factory price of domestic industrial grade propylene glycol refers to 12500 yuan / ton. Compared with January 1 (reference price 11333 yuan / ton), the average price of propylene glycol has increased by 1167 yuan / ton, or 5 88%; compared with December 1 (reference price: 12633 yuan / ton), the average price decreased by 133 yuan / ton, or 1.06%.

On the upstream side, after the new year’s day, the domestic propylene oxide market continued the trend of the end of December 2020, and the overall operation was stable, medium and strong, giving sufficient support to the cost of propylene glycol. As of January 7, the reference price of domestic propylene oxide was 19066.67 yuan / ton, up 0.88% compared with January 1 (18900 yuan / ton).

Internationally, on January 6, the price of WTI crude oil futures market in the United States rose, with the settlement price of the main contract at US $50.63/barrel, up US $0.70. Brent crude oil futures market prices rose, the settlement price of the main contract at 54.30 U.S. dollars / barrel, or 0.70 U.S. dollars. Oil prices continued to push up on Wednesday, with WTI rising above the $50 mark, mainly because US crude oil inventories fell by 8 million barrels for the fourth consecutive week, according to data released by the US Energy Information Administration (EIA).

It is expected that the propylene glycol market will be adjusted in a narrow range in the short term

At present, supported by cost, propylene glycol is running at a high level. Before the downstream demand is fully opened, it is expected that the market will continue to push up. Therefore, the propylene glycol Data Engineer of business society believes that in the short term, the propylene glycol market will be stable and small, with narrow adjustment as the main factor.