After the holiday, the domestic epoxy propane market surged and then stabilized. According to the monitoring system of Shengyi Society, as of October 16th, the benchmark price of Shengyi Society’s epoxy propane was 8066.67 yuan/ton, an increase of 3.86% compared to October 1st.
Price influencing factors:
Raw material side: The market price of raw material propylene has slightly increased, and there is still support for the epoxy propane market on the raw material side. As of October 16th, the benchmark price of propylene in Shengyi Society was 6400.75 yuan/ton, a decrease of 2.18% compared to the beginning of this month (6543.25 yuan/ton). The rise in raw material propylene prices has provided some support to the epoxy propane market.
Supply side: The epoxy propane supply side will tighten after the holiday. Multiple companies have announced parking or load reduction plans, resulting in a reduction in market supply scale. However, downstream enterprises have weak demand and are mainly adopting a wait-and-see approach, with cautious procurement. Expected stable operation of epoxy propane in the later stage.
Demand side: Downstream polyether enterprises are holding onto their essential procurement needs in multiple dimensions after the holiday, with a strong wait-and-see attitude. The load adjustment of the polyether end is limited, while the propylene glycol enterprise is increasing its load, and the overall demand performance is flat. The demand side has limited support for the epoxy propane market.
Market forecast:
Business Society’s epoxy propane analyst believes that the positive support for the domestic epoxy propane market is relatively limited, with a slight rebound in the raw material side propylene market and acceptable support. However, downstream demand is weak, and there is a strong wait-and-see sentiment. It is expected that the epoxy propane market will remain stable in the later stage, and more attention should be paid to changes in raw material prices and market supply and demand.