How does propylene carbonate pricing correlate with upstream feedstock costs?

How does propylene carbonate pricing correlate with upstream feedstock costs?
Propylene carbonate pricing is tightly linked to its two main production routes: propylene oxide (PO) and CO2 via the PO ester exchange method, or ethylene oxide (EO) routes. When PO prices spike, PC producers using the PO route face margin compression unless they pass costs downstream. In mid-2026, PC was quoted around 8,700 yuan/t in China, reflecting firm downstream demand from electrolytes and solvents. The PO-based route typically yields better margins when PO is cheap, while the EO route often hovers near breakeven. Producers with integrated CO2 supply, such as those in carbon capture projects, gain a cost advantage. As China adds new PO capacity, feedstock availability improves, potentially easing cost pressures on PC makers and supporting more stable pricing for buyers.