The upward trend of epoxy propane market prices in June is the main trend, and the prices are stabilizing towards the end of the month. According to the monitoring system of Shengyi Society, as of June 27th, the benchmark price of Shengyi Society’s epoxy propane in Shandong Province was 7666.67 yuan/ton, an increase of 4.4% from the beginning of the month.
Price influencing factors:
Supply side: At the beginning of the month, the inventory of epoxy propane in the market was tight, which provided strong support for the rise in epoxy propane prices.
Raw material side: The rising market price of raw material propylene provides strong support for the cost of epoxy propane. According to the market analysis system of Shengyi Society, as of June 26th, the benchmark price of propylene in Shengyi Society was 6838.25 yuan/ton, an increase of 4.59% compared to the beginning of this month (6538.25 yuan/ton).
Demand side: The downstream market for epoxy propane is in urgent need of procurement, with limited new inquiries and cold terminal demand. Therefore, it is mainly a wait-and-see approach. Downstream demand for polyether is not fluctuating significantly, with rigid procurement being the main focus and some incremental procurement. The demand for propylene glycol is generally followed up, but some factories may resume production in the later stage, and there may be an increase in demand. Overall, there is still some support from the demand side for the epoxy propane market, and the market may experience narrow consolidation in the later stage.
Market forecast:
An epoxy propane analyst from Shengyi Society believes that the supply of epoxy propane is tight, but the equipment will gradually resume at the end of the month, and the tight inventory situation will be alleviated. The market price will be consolidated and the downstream market will enter the off-season with weak demand, passive follow-up, limited new inquiries, and a wait-and-see attitude. It is expected that the epoxy propane market will mainly experience narrow consolidation in the later stage, and more attention should be paid to changes in raw material prices and downstream supply and demand.