In the first half of the month, the price of propylene glycol remained stable at the beginning and end, showing a wide V-shaped oscillation of “first falling, sideways, rebounding, and falling back”, without a unilateral trend. As of June 15th, the average production price of propylene glycol in Shandong region was 9833 yuan/ton, unchanged from the beginning of the month.

Core driving factors
Cost side traction
Epoxy propane first fell, then rose, and then fell back, completely dominating the trend of propylene glycol band. However, the traditional off-season demand downstream limited the upward space of propylene glycol. The highest increase of epoxy propane (pink line) reached 3.29%, while the maximum increase of propylene glycol was only 0.32%, showing a differentiation pattern of “raw material surge, small follow-up increase of finished products”.
Supply side support
In June, multiple sets of equipment underwent rotational inspections, resulting in a significant decrease of nearly 23 percentage points in operating rates. The market’s circulation of spot goods decreased, effectively stabilizing prices and preventing a deep decline.
Demand side ceiling
Unsaturated polyester resin (UPR) and polyether polyols have entered the summer off-season, and under high temperatures, end product companies have reduced their burden. Purchasing has only maintained rigid small orders, without centralized replenishment actions, and new orders have been light in transactions; Lithium battery electrolyte solvents, pharmaceutical/cosmetic grade propylene glycol have stable long-term orders, electronic grade high-purity sources are in short supply, and quotations have been higher than industrial grade for a long time to hedge against some off-season negative factors; Export orders remain stable, easing domestic spot pressure.
Market forecast:
At present, the industry’s equipment maintenance is ongoing, production is low, factory inventory is not under pressure, the rise of raw material epoxy propane is slowing down, and there is no centralized replenishment downstream. It is expected that propylene glycol will continue to fluctuate narrowly. Attention should be paid to the restart of the maintenance device.