What is driving the recent price surge in propylene glycol and how does it affect tripropylene glycol?

What is driving the recent price surge in propylene glycol and how does it affect tripropylene glycol?
Industrial-grade propylene glycol prices have surged from about 6,000 yuan/ton in Q4 2025 to 9,500-11,000 yuan/ton by March 2026, with peaks above 12,000 yuan/ton, driven by supply disruptions and new demand from AI liquid cooling. The cost push originates from propylene oxide, which rose over 58% in March due to geopolitical supply chain shocks. Supply tightened as plants underwent maintenance, while downstream sectors like unsaturated polyester resin and coatings resisted high prices, reducing purchasing to essential volumes. Producers like Shida Shenghua benefit directly as DMC co-producers with no feedstock cost pressure, making price gains nearly pure profit. However, high-price resistance is cooling buying enthusiasm, and with plant restarts in late March, supply is recovering, suggesting the rally may lose momentum.