According to the monitoring data of the business community, on October 1, the average quoted price of domestic industrial grade propylene glycol was 9166 yuan / ton. On December 31, the average quoted price of domestic industrial grade propylene glycol was 11333 yuan / ton. Compared with October 1, the average quoted price increased by 2167 yuan / ton, up 23.64% in the fourth quarter. From October 1 to December 31, the maximum amplitude is 40%.

The market trend of propylene oxide in the fourth quarter of 2020 has a profound impact on the fluctuation of domestic propylene glycol market

It can be seen from the trend chart of propylene glycol propylene oxide in the fourth quarter that the fluctuation of domestic industrial grade propylene glycol market is closely related to the rise and fall of raw material propylene oxide. In terms of cost, the support and pressure of cost directly affect the domestic market price trend of propylene glycol. In terms of demand, the increase and decrease of demand also have a significant impact on propylene glycol. It can be seen that in late October, the raw material ring is very important Propylene oxide went down, but the demand for propylene glycol was acceptable. Therefore, the market of propylene glycol remained stable at the end of October. During the middle and late November, supported by both cost and demand, the market of propylene glycol rose to a high level in the fourth quarter.

After the National Day in October, the domestic industrial propylene glycol market fluctuated and adjusted. Due to the cost pressure caused by the continuous increase of propylene oxide, the market price of propylene glycol continued to be high, and the price rose slightly. In the downstream, the demand of users did not increase significantly, but it could still maintain the purchase of rigid demand, and the inventory in the yard was low. Therefore, propylene glycol kept stable operation after a slight increase in October.

On the first few days of November, as the price of propylene oxide fell and the cost weakened, the price of propylene glycol went down. On the 9th and 10th, the decline of propylene oxide stopped. As for the increase of propylene glycol cost support, the supply of propylene glycol was tight, the inventory was low, and the pressure on supply was small. The factory’s offer price began to callback rationally. In the middle of the month, the foreign trade orders of propylene glycol increased, and the demand increased. Under the condition of “one order is difficult to obtain”, the factory’s offer price increased by 1000-2500 yuan / ton. On November 24, the reference average transaction price of domestic industrial grade propylene glycol rose to 12733 yuan / ton, the highest in the fourth quarter. Compared with October 1, the average price increased by 3567 yuan / ton, or 38.91%. After a slight decrease in demand, individual factories slightly lowered their quotations, but until the end of November, the overall propylene glycol market was strong.

On December 2, the quotation of domestic industrial grade propylene glycol market showed a “slide” downward trend. Propylene oxide, the raw material, began to fall since the end of November, and the support for propylene glycol gradually weakened. After the completion of early preparation, the wait-and-see mood of the downstream increased in the past two days, and the demand was insufficient. The offer of propylene glycol plant began to fall for 10 consecutive days since December 2. By the end of December 13, the average transaction price of propylene glycol plant had dropped to 0 10666 yuan / ton, down by 1967 yuan / ton or 15.57% compared with the beginning of December. Subsequently, the market continued to run in a weak position. During this period, individual factories failed to drive the overall market up after the price increase. On the 22nd of December, driven by the rising price of raw material propylene oxide, the market price of propylene glycol, which was depressed for several days, rose sharply for the first time in December. Then, individual propylene glycol factories in Shandong were shut down for maintenance. The supply of propylene glycol was tight, and the market was strong until the end of December On October 31, the reference average transaction price of domestic industrial grade propylene glycol rose to 11333 yuan / ton. Compared with October 1, the average transaction price increased by 2167 yuan / ton, up 23.64% in the fourth quarter. From October 1 to December 31, the maximum amplitude is 40%.

Analysis of future trend

Near the Spring Festival, the logistics will be shut down, and the downstream will start to store goods one after another. At present, some factories in Shandong are shut down for maintenance, and the inventory in the propylene glycol yard is low, so the supply is tight. Therefore, it is expected that the propylene glycol Market will rise slightly and maintain a strong operation before the Spring Festival.