Morning Market Update: Propylene Glycol

I. Key Focus Areas

1. On October 22, international crude oil prices rose amid market concerns that the US-Iran conflict could escalate further, coupled with Houthi attacks on Saudi Arabia increasing supply risks. NYMEX WTI crude oil futures for December delivery closed at $99.47/bbl, up $2.32/bbl (month-over-month +2.39%). ICE Brent crude oil futures for December delivery closed at $113.17/bbl, up $4.35/bbl (month-over-month +4.00%). China INE crude oil futures contract SC2612 rose by 1.2 to 702 yuan/barrel during the day session and increased by 11.2 to 713.2 yuan/barrel in the night session.

2. Feedstock: The mainstream offer price from major plants for propylene oxide was 11,300 yuan/tonne (ex-works, telegraphic transfer).

3. Supply: There were limited reports of plant operational fluctuations, keeping supply relatively ample.

4. Downstream Dynamics: Unsaturated resin markets remained stable; spot polyether markets stayed weak and stagnant.

Core Logic: Propylene oxide prices are expected to stabilize and rebound slightly after bottoming out, providing cost support. Yesterday’s transactions in the propylene glycol spot market occurred at lower prices but maintained decent volumes, leaving producers with no immediate shipment pressure in the short term.

II. Price Table

Notes:

1. Both propylene glycol and dimethyl carbonate are industrial grade.

2. All prices are quoted in RMB, unit: yuan/tonne.

3. Payment terms: Propylene glycol and dimethyl carbonate are ex-works with bank acceptance bills; propylene oxide and polyethers are ex-works with cash settlement; unsaturated resins are factory pick-up.

4. The two listed prices represent point-in-time values from the two preceding working weeks, not weekly averages.

5. The change rate refers to the week-over-week percentage change.

III. Market Outlook

On the previous trading day, propylene glycol market prices remained largely stable with some negotiation activity. Regarding feedstocks, propylene prices—the primary raw material for propylene oxide—rebounded sharply in the afternoon yesterday, providing supportive momentum that improved overall market sentiment. This led to increased purchasing volumes downstream and some feedback from end-users. The market has since stabilized, and today may see a catch-up rise in low-priced offers, causing the price center to shift slightly upward. In the propylene glycol segment, traders are watching for stabilization in propylene oxide prices and making moderate purchases based on genuine demand when prices dip. Yesterday’s transaction volumes at slightly lower prices were acceptable, meaning producers face no immediate shipment pressure in the short term. It is estimated that offer prices will recover from their lows as traders monitor the impact of feedstock trends and the sustainability of producer shipments.

Notes:

1. ↓↑ indicates significant volatility, highlighting data dimensions with changes exceeding 3%.

2. ↗↘ indicates minor fluctuations, highlighting data dimensions with changes within the 0–3% range.