As of September 19, the average price of propylene oxide enterprises was 10066.67 yuan/ton, 2.27% lower than that of last Wednesday (September 14), and 11.85% higher than that of August 19.

Raw material end

Last week, the domestic propylene (Shandong) market price continued to rise. The average price of the Shandong market at the beginning of the week was 7320 yuan/ton, and the average price at the weekend was 7434 yuan/ton, with a weekly increase of 1.56%, 3.77% higher than 30 days ago. The downstream rigid demand for propylene still has some support, and it is estimated that there is still room for a small increase after narrow fluctuations. The overall raw material end support is limited.
Supply side

After shutdown or maintenance by some manufacturers, the pressure at the supply end of the ring C continued to accumulate in late September, and the support for the supply end face was weak.
Demand side

According to the data released by the China Bureau of Statistics, from January to August, the investment in real estate development projects nationwide increased by 10.5% year on year, 0.1 percentage point lower than that from January to July; From January to August, the total sales area of commercial housing decreased by 0.6%, or 0.7 percentage points, year on year. In August, against the background that the central government continued to tighten the real estate supervision and financial policies, the national real estate market continued to cool down and the market differentiation was still intensifying. From the performance of the new housing market, the market sentiment dropped significantly in August, most real estate enterprises pushed the pace to slow down, the prices in 100 cities further narrowed, and the trading area in key cities decreased year on year.
At present, the impact of the domestic real estate downturn on the domestic demand for soft furniture and household appliances is still significant – limited order receipt and extended inventory consumption cycle. At present, the output of individual refrigeration manufacturers has increased month by month, but the decline in overseas demand still drags down the overall production and sales of the industry, resulting in weak operation. With the cold weather, the thermal insulation construction projects were launched in early September, and the demand for raw materials related to spraying and plates increased slightly compared with the previous month, but the overall demand performance is still weak. When it was transferred to the polyurethane raw material market, it was difficult to shake the industry mentality, and the desire to pursue was low. “There is no market with price” was frequently staged, resulting in low consolidation of propylene oxide and polyether polyol and interval impact.
Influenced by repeated macroeconomic downturns, epidemics and other factors, some house buyers are in a strong wait-and-see mood. However, the previous overstock rigidity and improved demand caused by epidemic factors may gradually release and superimpose “golden nine silver ten” after the third quarter. Driven by the atmosphere of the National Day holiday, it is optimistic that economic recovery and expected improvement will promote the release of some polyurethane demand. In addition, the dominant position of cyclopropylene manufacturers still exists. Generally speaking, it is expected that the price of the ring C will remain unchanged in the short term, mainly due to range fluctuations.