Weekly Market Outlook for Propylene Glycol

I. Key Focus Areas

1. Oct 16: Conflict between the Houthis and Saudi Arabia continues, compounded by the Russia-Ukraine war, driving up supply risks and pushing international crude oil prices higher. NYMEX WTI crude futures (November contract) rose by USD 3.44/bbl to USD 101.41/bbl, a +3.51% change from the previous session; ICE Brent crude futures (December contract) rose by USD 3.94/bbl to USD 109.86/bbl, a +3.72% change. China INE crude oil futures (December 2026 contract) fell by CNY 2.2 to CNY 723/bbl in the day session but rebounded by CNY 16.8 to CNY 739.8/bbl in the night session.
2. Feedstock: Major propylene oxide (PO) plants quoted new orders at CNY 11,550/ton (T/T ex-factory).
3. Supply: Monitor unit fluctuations in the Shandong region.
4. Downstream Dynamics: Unsaturated resin market remained stable with a wait-and-see attitude; spot polyether market saw significant downward adjustments.

Core Logic: The PO market rebounded after an initial decline. Following the dip, traders adopted a wait-and-see stance supported by stronger crude oil prices, boosting sentiment. Downstream buyers increased purchases and concentrated follow-up buying. Quotes rebounded quickly on Sunday, though the increase was somewhat large. Meanwhile, feedstock propylene prices remained stable for now. Some downstream participants reverted to a cautious wait-and-see approach, reducing purchase volumes again. Regarding the PG market, transaction centers continued to fall to low levels last week, with good trading activity in the lower price segment. Over the weekend, feedstock prices rebounded, prompting suppliers to slightly raise quotes. After the price hike, strong wait-and-see sentiment prevailed within the market. Attention is focused on today's new order quotes.

II. Price Table

Notes:

1. PG and DMC are industrial grade.
2. Prices are in RMB, unit: CNY/ton.
3. PG and DMC prices are based on bank acceptance draft payment ex-factory; PO and polyether prices are based on cash T/T ex-factory; unsaturated resin prices are based on factory pickup.
4. The two price periods represent point-in-time prices from the two preceding working weeks before this week, not weekly averages.
5. Change rate refers to the period-over-period percentage change.

III. Market Outlook

Last week, domestic PG market prices trended weakly downward. On the feedstock side, the PO market may consolidate temporarily; Jinling plans maintenance work this week, awaiting feedback from end-users today. In the PG market, although feedstock prices rebounded after a rise, holders remain somewhat cautious, observing shipment conditions today. Overall, the domestic PG market is expected to fluctuate within a narrow range.

IV. Data Calendar

Notes:

1. ↓↑ indicates significant volatility, highlighting data dimensions with changes exceeding 3%.
2. ↗↘ indicates minor volatility, highlighting data dimensions with changes within 0–3%.