Morning Market Update: Propylene Glycol

I. Key Points

1. September 21: Reports indicate that the United States and Iran may resume negotiations, easing market concerns and causing international crude oil prices to fall. NYMEX WTI October futures closed at $95.78/barrel, down $4.52/barrel (-4.51% WoW); ICE Brent November futures closed at $100.34/barrel, down $3.53/barrel (-3.40% WoW). China INE crude oil futures (contract 2611) fell by CNY 23.6 to CNY 730.8/barrel; the night session dropped by CNY 16.5 to CNY 714.3/barrel.
2. Raw Materials: Today’s new offer for Propylene Oxide (PO) is quoted at CNY 11,150/ton (ex-works, T/T), unchanged from the previous trading day.
3. Supply: Monitor equipment status in the Shandong region.
4. Downstream Dynamics: Unsaturated resin markets are stabilizing; spot offers for polyether have fallen significantly.

Core Logic: The raw material PO market experienced a significant pullback. Production plants, under pressure from sluggish sales in the earlier period, continued to lower their offers, reaching recent lows. Downstream buyers, previously on the sidelines, have gradually begun increasing purchases. In the Propylene Glycol (PG) market, falling costs have led suppliers to lower offers to low levels. Downstream players are following suit with purchases. There remains certain rigid demand ahead of the holiday, leading to a recovery in transaction sentiment in key markets. Some sellers are holding back inventory or closing orders due to reluctance to sell at current prices. Attention should be paid to today's new offer prices.

II. Price Table

Notes:

1. PG and DMC are both industrial grade.
2. Prices are in RMB, unit: CNY/ton.
3. PG and DMC prices are ex-works (acceptance draft); PO and Polyether prices are ex-works (cash settlement); Unsaturated Resin prices are factory pickup.
4. The two price periods represent point-in-time prices from the two preceding working weeks prior to this week, not weekly averages.
5. The change rate represents the week-over-week percentage change.

III. Market Outlook

The domestic PG market saw a slight downward trend in the previous trading day. Regarding raw materials, the PO market may temporarily stabilize and trade sideways; terminal feedback should be monitored. In the PG market, news regarding shutdowns of specific units in key markets has emerged. Combined with suppliers lowering offers again to low levels, current operations focus on reducing inventory and clearing pending orders through active sales. Overall, the domestic PG market is expected to fluctuate within a narrow range. Continuous attention should be paid to guidance from plant status and raw material prices.

IV. Data Calendar