1. Weekly Market Focus
Supply: During the week, Binhua and Sanyue resumed normal output after temporary reductions; Shida restarted and ran at full load; Wanhua and Levima recovered some incremental volumes. Total output this period was 115,100 tonnes, an increase of 5,200 tonnes from the previous period. Capacity utilization stood at 61.47%, up 2.81 percentage points period-on-period.
Cost: The weekly average comprehensive profit for the chlorohydrin process propylene oxide was -899.32 yuan/mt, down 4.52% period-on-period. The theoretical profit for the HPPO process was -1,777.12 yuan/mt, down 8.51% period-on-period.
2. Weekly Market Analysis
During the period under review, the domestic propylene oxide (PO) market consolidated and then moved upward. Over the previous weekend, the market traded sideways on a weak note; after downstream buyers completed their month-end essential needs, market sentiment returned to a weak, wait-and-see stance. Early this week, however, sharp gains in crude oil and propylene sparked some concerns and significantly lifted production costs. Combined with supply-side units mostly operating under no pressure—and Levima restarted but with limited volume contribution—the market remained in a tight balance. Downstream buyers gradually increased purchasing after their initial wait-and-see approach, while some end-user demand also improved. PO prices followed propylene upward, with successive increases moving offers back above the 10,000 yuan/mt threshold. At present, caution has increased in the market; some downstream participants report limited ability to pass on costs further down the chain. At the same time, the propylene uptrend has slowed, and overall sentiment has cooled slightly from earlier in the week. As of Thursday, PO discussions in Shandong were at 10,100–10,100 yuan/mt, cash ex-works.
During the period, PO operating rates rose. Binhua and Sanyue recovered after short-term output reductions; Shida restarted and ran at full load; Wanhua and Levima restored some incremental volumes. On the cost side, propylene strengthened notably, while liquid chlorine rebounded within a narrow range; losses for representative processes continued, and average profits edged slightly lower. On the demand side, buyers turned more active early in the week and followed up in succession, lifting new orders. However, as prices advanced, cost pass-through became constrained, cautious sentiment increased, and some buyers trimmed volumes.
3. Propylene Oxide Market Outlook and Analysis
Looking ahead, propylene is tentatively expected to run on the weak side, while liquid chlorine should remain broadly stable, leaving cost-side support slightly reduced. On the supply side, most production units are expected to remain stable. Qixiang and Satellite may restart, though their additional volumes are expected to be somewhat delayed; the output estimate is revised upward. Downstream demand is likely to remain cautious and wait-and-see, with essential purchases following up only as price pass-through develops. Overall, the market uptrend is expected to slow and stabilize, with some possibility of downward movement in the later period.
For more weekly market analysis, please refer to the Chempricehub Propylene Oxide Weekly Report.
Comments
0