Downstream market cautiously eases; raw materials rebound to strength on renewed upward momentum (20260908)

1. Highlights

① On the supply side in the on-site market, units including Zhenhai Phase 2, Guoen, Qixiang and Satellite are shut down. Trading sentiment was weak at first and then strengthened.

② Today, the domestic propylene oxide capacity utilization rate was 64.23%.

2. Spot Market Overview

Table 1 Summary of Domestic Propylene Oxide Prices (Unit: Yuan/ton)

Data source: Chempricehub

Based on the Shandong region as the benchmark, propylene oxide prices closed at 9,885 Yuan/ton today, down from the previous assessment, in line with morning expectations.

Today, the domestic propylene oxide market weakened first and then strengthened. The supply side ran largely stable. After generally mediocre offtake at plants in operation, producers appropriately lowered offers to await downstream pass-through. In the afternoon, however, feedstock propylene surged broadly back to high levels, lifting market sentiment. Downstream subsequently bought in succession, and the market once again showed strength.

3. Production Updates

Propylene oxide capacity utilization stands at 64.23%. At present, units including Zhenhai Phase 2, Guoen, Qixiang and Satellite are shut down. Cost support remains acceptable.

4. Price Forecast

Looking ahead, the market is once again supported by feedstock and showing strength. With short-term bullish support maintained, prices are expected to remain elevated. Continue to monitor.

5. Related Product Updates

Propylene market: Today, propylene prices in the Shandong market climbed sharply. The mainstream closing reference was 9,450-9,580 Yuan/ton, with an average of 9,515 Yuan/ton, up 475 Yuan/ton from the previous working day. The contraction of externally sold supply, combined with higher feedstock prices, boosted trading sentiment and drove producers to raise offers broadly. Downstream buying followed well, spot premiums widened, and the transaction center of gravity rose significantly.

Liquid chlorine market: Upstream supply changed little, and enterprise shipments were acceptable, though some companies held medium-to-high inventories. Today, high-priced liquid chlorine was revised down while low prices remained stable. At present, liquid chlorine prices are 100-150 in the Lubei (northern Shandong) region, 100-150 in the Lunan (southern Shandong) and Luxinan (southwestern Shandong) regions, and 100-150 in the Jiaodong Peninsula region (Unit: Yuan/ton).

Flexible foam polyether polyol market: Flexible foam polyether polyol traded on a consolidative note. In Shandong, the reference is 10,200-10,400 Yuan/ton cash; in East China, discussions are at 10,200-10,600 Yuan/ton cash delivered; in South China, discussions are at 10,300-10,700 Yuan/ton cash delivered. Specific terms are negotiable. The spot market consolidated weakly in early trading. Falling feedstock prices loosened high-end polyether quotes; suppliers revised new orders downward for consolidation. Inquiry interest in the market was only limitedly supported, actual transaction feedback was poor, and participants remained in a wait-and-see mood.

6. Data Calendar

Table 2 Domestic Propylene Oxide Data Overview (Unit: 10,000 tons, Yuan/ton)

Data source: Chempricehub

Notes:

1. ↓ ↑ are deemed significant fluctuations, highlighting data with a change exceeding 3%.
2. ↗ ↘ are deemed narrow fluctuations, highlighting data with a change within 0-3%.