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Home > News > Morning Market Update for the Domestic Propylene Oxide (PO) Market

Morning Market Update for the Domestic Propylene Oxide (PO) Market

Published on 2026-09-21

I. Key Points

① 9/18: Expectations for the repair of Saudi oil pipelines improved, combined with signs of easing tensions in the Middle East, leading to a decline in international crude oil prices. NYMEX WTI crude futures (October contract) fell $1.61/bbl to $100.3, down 1.58% from the previous session; ICE Brent crude futures (November contract) dropped $0.95/bbl to $103.87, down 0.91%. China INE crude oil futures (November 2026 contract) fell by 50.6 yuan to 754.4 yuan/bbl, and declined another 19.6 yuan to 734.8 yuan/bbl during the night session.

② Stable cost support: Feedstocks propylene and liquid chlorine rebounded slightly after recent declines, potentially stabilizing. Cost support remains steady, while crude oil volatility continues to influence market sentiment.

③ Cautious downstream operations: Downstream demand is observing the downward market trend, with many buyers gradually reducing purchase volumes. Market sentiment varies among participants.

Core Logic: The market has retreated from its highs and is trending downward. Currently, downstream sectors are following cautiously, with all parties adopting a wait-and-see approach amidst consolidation.

II. Price Table

Product Market Name 2026/09/18 2026/09/20 Change Change % Unit
Propylene Shandong 9675 9635 -40 -0.41% RMB/ton
Liquid Chlorine Shandong 300 350 50 16.67% RMB/ton
Propylene Oxide (PO) Shandong 11935 11585 -350 -2.93% RMB/ton
Soft Block Polyether Shandong 12300 12050 -250 -2.03% RMB/ton
Propylene Glycol (PG) Shandong 9050 8850 -200 -2.21% RMB/ton
Dimethyl Carbonate (DMC) Shandong 5900 5650 -250 -4.24% RMB/ton
Propylene Glycol Methyl Ether (PM) East China 11800 11800 0 0% RMB/ton

III. Market Outlook

Yesterday, the domestic propylene oxide (PO) market continued to decline. Supply-side facilities remained largely stable. Operating plants have experienced weak shipments for several consecutive days, with some accumulating inventory under pressure. Negotiated prices have gradually fallen. Currently, fluctuations on the cost side have narrowed, reducing their impact. Downstream demand remains relatively cautious, with buyers primarily reducing purchase volumes while observing the recent downward trend. Market trading activity is sluggish, and prices are expected to continue declining within a narrow range today.

IV. Data Calendar

Data Indicator Release Date Previous Period Expected Trend This Period
Weekly PO Capacity Utilization Rate Thursday 17:00 PM 67.35%
Weekly Polyether Polyol Capacity Utilization Rate Thursday 17:00 PM 51.10%
Weekly PG Capacity Utilization Rate Thursday 17:00 PM 65.85%
Note 1: ↓↑ indicates significant fluctuation, highlighting data dimensions with changes exceeding 3%.
Note 2: ↗↘ indicates minor fluctuation, highlighting data with changes within 0-3%.

Comments

0
  • Sarah Mitchell 2026-09-21 20:05
    With crude dipping and feedstock costs stabilizing, PO prices face downward pressure. Downstream demand remains cautious, leading to reduced purchases. I expect narrow-range declines as capacity utilization stays low and..
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