Morning Market Insights for the Propylene Glycol (PG) Market

I. Key Focus Points

1. Geopolitics & Crude Oil (Sep 22): US and Iran are scheduled to hold talks, with markets anticipating a de-escalation of geopolitical tensions, leading to a drop in international crude oil prices. NYMEX WTI October futures closed at $94.59/bbl, down $1.19 (-1.24%); ICE Brent November futures closed at $99.25/bbl, down $1.09 (-1.09%). China INE crude oil futures for the November 2026 contract fell by 13.7 to 717.1 yuan/bbl; night session trading dropped by 22.3 to 694.8 yuan/bbl.

2. Raw Materials: Propylene oxide (PO) offers for new orders stood at 11,150 yuan/ton (ex-factory, wire transfer), remaining stable compared to the previous business day.

3. Supply: Monitor plant operations in the Shandong region.

4. Downstream Dynamics: Unsaturated resin markets remained steady but trended slightly lower; spot polyether markets saw offers stabilize.

Core Logic: The raw material PO market remained generally stable, with shipments gradually increasing to alleviate some inventory pressure. Offers stabilized within a consolidation range. While upstream propylene prices were weak, providing moderate cost support, pre-holiday caution led many downstream buyers to wait for potential PO price adjustments before following up on purchases. In the propylene glycol (PG) market, raw material prices held steady. Pre-holiday domestic and export demand released some essential orders, with most suppliers focused on fulfilling existing backlogs. Yesterday's offers adjusted upward within a narrow range, but actual transactions continued at negotiated low levels, resulting in an overall lackluster sentiment. Attention is now on today's new order pricing.

II. Price List

Notes:

1. Propylene glycol and dimethyl carbonate are industrial grade.
2. Prices are in RMB, unit: yuan/ton.
3. Propylene glycol and dimethyl carbonate prices are ex-factory with acceptance bills (bank acceptance drafts). Propylene oxide and polyether prices are ex-factory with cash/wire transfers. Unsaturated resin prices are ex-works pickup.
4. The two-period prices represent spot prices from the two preceding business weeks, not weekly averages.
5. Change rate refers to the period-over-period change.

III. Market Outlook

On the previous business day, PG market prices fluctuated within a range. Regarding raw materials, the PO market may experience short-term stabilization and consolidation. In the PG market, crude oil prices trended lower amid volatility, maintaining cautious sentiment among market participants with mixed attitudes. Overall, the domestic PG market is expected to trade in a narrow range, with continued focus on plant operations and raw material price guidance.

IV. Data Calendar