Morning Market Update for Domestic Propylene Oxide

I. Key Focus Points

① 11/11: Middle East tensions remain unstable, and the prospects for US-Iran peace talks are unclear, driving international crude oil prices higher. NYMEX WTI crude oil futures (December contract) closed at $86.53/barrel, up $0.49 (+0.57%); ICE Brent crude oil futures (January contract) closed at $92.76/barrel, up $1.27 (+1.39%). China INE crude oil futures (January 2027 contract) fell by 15.2 to 584.1 CNY/barrel during the day session, but rose by 13.2 to 597.3 CNY/barrel in the night session.

② Cost Support Slightly Weakened: Feedstock propylene prices dropped significantly, while liquid chlorine also showed a downward trend. Overall costs remained consolidated with a slight decline. Crude oil volatility continues to influence market sentiment.

③ Downstream Buyers Adopting Wait-and-See Approach: Downstream demand saw some follow-up purchasing in the previous two days. Currently, buyers are observing due to limited cost support, likely matching purchases based on today's order intake.

Core Logic: The market rebounded after a decline; currently, all parties are digesting the changes and consolidating, waiting for stronger support.

II. Price Table

III. Market Outlook

Yesterday, the domestic PO market stabilized and recovered slightly. There were minor fluctuations and adjustments in supply-side units; operating plants maintained decent shipment rates, gradually transferring inventory pressure downstream. Overall spot transactions remained stable with slight tightening, and market activity was calm. Some new orders from the downstream sector supported short-term purchasing. However, feedstock prices fell sharply; although this eased cost pressures somewhat, it negatively impacted market sentiment. Today, downstream buyers may adopt a wait-and-see approach regarding new orders before matching purchases, maintaining cautious sentiment.

IV. Data Calendar