This week, the market price of epoxy propane first fell and then rose. As of June 4th, the benchmark price of epoxy propane in Shengyi Society was 9000 yuan/ton, an increase of 1.12% compared to June 1st.
Raw material side: This week, the raw material propylene market was mainly affected by the concentrated return of maintenance equipment, resulting in weak price consolidation and limited support for the cost side of epoxy propane. As of June 4th, the benchmark price of propylene in Shengyi Society was 9004.33 yuan/ton, a decrease of 1.42% compared to the beginning of this month (9134.33 yuan/ton).
Supply side: The contraction of the supply side this week is the core factor driving the market to stabilize and recover. The centralized parking and load reduction operation of the equipment have led to a temporary tightening of spot supply, and the willingness of production enterprises to control quantity and ship has increased after the easing of inventory pressure, providing fundamental support for the price to stop falling and recover.
Demand side: Downstream consumption of epichlorohydrin is still dominated by polyether polyols, accounting for over 75%. At the beginning of this week, the downstream continued to adopt a cautious wait-and-see attitude, with average feedback on new orders and only a small increase in volume to follow up; As the market continues to decline and the risk of further decline is released, the wait-and-see sentiment has eased, and downstream buyers have followed suit, leading to a slight recovery in market trading atmosphere. However, overall, the increase in operating load of major downstream polyether factories during the off-season of traditional demand is limited, mainly focused on rigid procurement, and the support from the demand side still needs to be further strengthened.
Comprehensive forecast: Business Society’s epoxy propane analyst believes that the epoxy propane market has completed a phase of bottoming out this week driven by the concentrated reduction of supply side equipment, and the price has rebounded from the low point. However, due to the overall weak downstream demand and light production and sales of polyether chains, the market reversal momentum is not yet sufficient, and the subsequent trend still needs to focus on changes in operating rates and the recovery of terminal orders.
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