In early February 2026, the propylene glycol market in Shandong Province maintained a stable trend with subdued trading activity. According to the commodity market analysis system of Business Society, as of February 9, the average production price of propylene glycol in the Shandong region was 5,933 yuan per ton, unchanged from the beginning of the month but down 5.8% year-on-year.
Driving Factors
- Supply Side: Some production units were shut down, but supply remained ample, with inventory levels moderately high. Destocking progressed slowly, with a primary focus on stabilizing prices and reducing inventory.
- Demand Side: February coincided with the pre-Chinese New Year period, traditionally a market off-season. Downstream factories gradually halted operations for holidays, with only essential procurement taking place. Market activity declined, lacking sufficient support, though a gradual recovery is expected after the Spring Festival.
- Cost Side: The price of the primary raw material, propylene oxide, faced downward pressure, weakening cost support and making a strong short-term boost unlikely. On February 9, the benchmark price of propylene oxide, as reported by Business Society, was 7,800.00 yuan per ton, down 4.88% from the beginning of the month.
Outlook
In the short term, around the Spring Festival holiday, the market is expected to continue operating steadily, with limited likelihood of significant price fluctuations. Post-holiday, attention will be on the pace of downstream industry resumption and restocking demand.
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