The domestic propylene glycol plant has maintained a low level of operation since the Spring Festival, and the current tight market supply situation continues; At the same time, the price of raw material propylene oxide has risen recently, and the cost is also supported. Since 2023, the price of propylene glycol in China has risen steadily. Due to the planned overhaul of individual units recently, the price has risen again this week. The overall market is still expected to wait for further economic recovery. The short-term propylene glycol market price is stable and strong, and the future price is expected to break 10000.
Domestic propylene glycol prices continue to rise

The domestic market price of propylene glycol continued to rise. At present, the factory mostly implements the preliminary orders, the market supply is tight, the offer is mainly increased, and the downstream just needs to follow up. On February 23, the reference prices of the domestic propylene glycol market were as follows: the mainstream transaction prices in the Shandong market were 9400-9600 yuan/ton, the mainstream transaction prices in the East China market were 9500-9700 yuan/ton, and the mainstream transaction prices in the South China market were 9000-9300 yuan/ton. Since the beginning of this week, supported by various positive factors, the price of propylene glycol has continued to rise. The average market price today is 9300 yuan/ton, up 200 yuan/ton from the previous working day, or 2.2%.
These are the main reasons for the rise of propylene glycol,
1. The price of raw material propylene oxide keeps rising, and the cost is driven strongly;
2. The market supply of propylene glycol is low and the spot circulation is tight;
3. Downstream demand improved and the negotiation atmosphere was positive;
Propylene glycol rise supported by supply and demand
Raw material: the price of propylene oxide rose strongly in the first ten days of February under the support of cost. Although the price fell in a narrow range due to the drop of liquid chlorine price in the middle of February, the price rose again this week. The price of propylene glycol was low in the early stage and basically operated near the cost line. The linkage between the recent price trend and the cost was strengthened. The narrow fall of propylene glycol in the middle of the year caused the temporary consolidation of propylene glycol; The rise in the price of propylene glycol this week pushed the cost of propylene glycol higher, which also became one of the factors for the price rise.
Demand side: In terms of domestic demand, the participation of domestic downstream factories has always been average after they just need to prepare goods. The main reason is that although the commencement of the downstream unsaturated resin has improved, the overall improvement of its own order is not obvious, so the follow-up of the high price is not positive. In terms of exports, inquiries were good before and after the Spring Festival, especially after the price showed a continuous upward trend in February, the increase of export orders pushed up the price again.
Propylene glycol has room to rise in the future
The propylene oxide market at the raw material end is still likely to rise, while the favorable support at the cost end remains. At the same time, the overall supply of propylene glycol is also likely to continue to decline. Both Anhui Tongling and Shandong Dongying units have maintenance plans in March, and the market supply is expected to be reduced. The spot market will still be in a state of oversupply, and manufacturers’ price increases are supported. From the perspective of demand, the downstream market demand is fair, the market purchasing mentality is positive, and the market participants are bullish. It is expected that the market price of propylene glycol will enter the upward channel in the near future, and the price still has room to strengthen. The market price range is 9800-10200 yuan/ton, and we will continue to pay attention to the new orders and device dynamics in the future.