At the beginning of the month, the price of raw material propylene oxide (PO) declined, reducing cost support. With sluggish downstream demand, some factories actively offered discounts and repeatedly lowered PG ex-factory prices, dragging down the market price. Market participants were primarily cautious and watchful, and downstream procurement enthusiasm was moderate.
Following this, cost support from PO remained limited, and downstream demand was weak. Some factories continued to offer discounts, weighing on the market price. Later, as raw material prices increased, cost-side support boosted factory sentiment, leading to an increased reluctance to sell and higher offers. The PG market price experienced a narrow upward adjustment.
After mid-month, PO prices continued to rise, providing stable cost support for PG. With factories reluctant to sell, offers increased. However, downstream demand remained sluggish, and market watchfulness persisted, with end-users maintaining just-needed purchases. As the upward momentum in raw material prices faded, the PG market largely stabilized.
Towards the end of the month, cost support from PO decreased. Furthermore, the downstream resin industry entered its seasonal off-season, resulting in poor terminal demand. Some PG factories actively offered discounts to promote sales. Market participants remained cautious, and new order bookings were limited. As of the time of writing, the ex-factory price (acceptance) from mainstream plants in Shandong was around 5,900-6,300 yuan/ton. Negotiated prices in the East China market were around 6,150-6,250 yuan/ton (delivered, acceptance), while prices in the South China market held steady at 6,350-6,450 yuan/ton (delivered, cash payment).
Outlook for July: The PG market may experience a narrow downward trend in July. Cost support from raw materials is expected to be limited. The main downstream resin industry is in its seasonal off-season, which may lead to reduced demand for PG. Additionally, PG supply is expected to increase further. Therefore, the PG market in July is anticipated to be slightly weak overall. It is advised to monitor plant operations and downstream demand developments.
