Weekly Market Outlook for Propylene Glycol

I. Key Focus Points

1. October 9: The US and Iran indicated that negotiations are ongoing, easing market concerns. However, hurricane impacts continued to suppress US crude oil production, leading to a rise in international oil prices. NYMEX WTI November futures closed at $91.85/bbl, up $0.36/bbl (+0.39% WoW); ICE Brent December futures closed at $104.72/bbl, up $0.44/bbl (+0.42% WoW). China INE Propylene Oxide November 2026 futures rose by 3.9 to 741.3 CNY/ton during the day session but fell by 1.5 to 739.8 CNY/ton during the night session.
2. Raw Materials: Today, major propylene oxide (PO) plants offered new contracts at 11,650 CNY/ton (T/T, ex-factory).
3. Supply: Monitor operational fluctuations of units in the Shandong region.
4. Downstream Dynamics: Unsaturated resin markets remained stable; spot offers for polyether continued to rise amid consolidation.

Core Logic: The raw material propylene oxide market adjusted upwards. Active plants maintained smooth shipments and gradually raised offers. Additionally, high feedstock costs persisted with propylene continuing to rise at elevated levels and liquid chlorine recovering, providing strong cost support. Although some new downstream orders were slightly weak, buyers continued to procure PO due to its strength, keeping market trading activity moderate. In the propylene glycol (PG) market, cost-side pressures continued to push prices up. Suppliers slightly followed suit with higher offers, resulting in a somewhat stalemate atmosphere as market participants remained cautious. Attention is on today's new contract offer prices.

II. Price List

Notes:

1. Propylene Glycol and Dimethyl Carbonate are industrial grade.
2. Prices are quoted in Chinese Yuan (CNY), unit: CNY/ton.
3. Propylene Glycol and Dimethyl Carbonate are quoted on an acceptance bill basis (ex-factory); Propylene Oxide and Polyether are quoted on a cash-in-advance basis (ex-factory); Unsaturated Resins are quoted as factory pickup.
4. The two price periods represent point-in-time prices from the previous two working weeks before this week, not weekly averages.
5. The change rate refers to the period-over-period percentage change.

III. Market Outlook

Last week, the domestic propylene glycol market showed slight gains amidst stability. Regarding raw materials, the propylene oxide market maintained short-term bullish support; attention should be paid to feedback from cost and demand sides. In the PG market, continuous fluctuations in supply and raw material prices kept holders cautious, with no decrease in wait-and-see sentiment. Overall, the domestic PG market is expected to remain largely stable with minor movements. Continue to monitor guidance from plant operations and raw material prices.

IV. Data Calendar