This week, the market price of epoxy propane first rose and then stabilized. According to the monitoring system of Shengyi Society, as of June 20th, the benchmark price of Shengyi Society’s epoxy propane was 7543.33 yuan/ton, an increase of 2.72% compared to the beginning of the month.

Price influencing factors:
Raw material side: The market price of raw material propylene has risen, with strong support from the cost side. According to the market analysis system of Shengyi Society, as of June 20th, the benchmark price of propylene in Shengyi Society was 6613.25 yuan/ton, an increase of 1.15% compared to the beginning of this month (6538.25 yuan/ton).
Supply side: The tight supply of epoxy propane market this week has provided strong support for the rise in epoxy propane prices. As of the 18th, only the 200000 tons/year PO/SM unit of Shenghong Petrochemical has resumed normal operation at 70-80% load, while the remaining Wanhua Phase III, Satellite Petrochemical, and Sinopec Changling units are planned to resume gradually from the weekend to the end of the month. The expected increase in volume during the month is limited, and the initial inventory during start-up is expected to be low.
Demand side: The downstream market for epoxy propane is in urgent need of procurement, with limited new inquiries and cold terminal demand. Therefore, it is mainly a wait-and-see approach. Downstream demand for polyether is not fluctuating significantly, with rigid procurement being the main focus and some incremental procurement. The demand for propylene glycol is generally followed up, but some factories may resume production in the later stage, and there may be an increase in demand. Overall, there is still some support from the demand side for the epoxy propane market, and the market may experience narrow consolidation in the later stage.
Market forecast:
Business Society’s epoxy propane analyst believes that the supply of epoxy propane is tight, with a slight increase in market prices. Downstream market demand is weak during the off-season, and there is passive follow-up. New inquiries are limited, so it is mainly a wait-and-see approach. It is expected that the epoxy propane market will mainly experience narrow consolidation in the later stage, and more attention should be paid to changes in raw material prices and downstream supply and demand.