In August, the domestic epoxy propane market showed a trend of first decreasing and then increasing, and the market price trend continued to decline towards the end of the month. According to the monitoring system of Shengyi Society, as of August 29th, the benchmark price of Shengyi Society’s epoxy propane was 7600 yuan/ton, a decrease of 4.4% compared to August 1st.

Price influencing factors:
On the raw material side, the fluctuation of propylene prices in August has limited support for the cost of epoxy propane, and has not exerted significant pressure on the cost of epoxy propane. According to the market analysis system of Shengyi Society, as of August 28th, the benchmark price of propylene in Shengyi Society was 6633.25 yuan/ton, an increase of 3.11% compared to the beginning of this month (6433.25 yuan/ton).
Supply side: In the first half of the month, due to the resumption of production of Qixiang’s 300000 tons/year plant, the market supply increased to around 19000 tons, and the spot circulation increased to 11500 tons. At the same time, terminal demand has weakened, downstream digestion of previous orders has become the main focus, and prices have fallen from high levels. At the end of August, the Shida epoxy propane unit will be shut down for maintenance. Some factories in Shandong have smooth shipments, but inventory is tight, and there is a positive attitude towards pushing up the epoxy propane market.
On the demand side: In early August, there was insufficient follow-up on downstream demand for epoxy propane, and many downstream customers were in the early stage of digesting orders, resulting in a decrease in purchasing enthusiasm. In late August, the demand for replenishment in downstream industries such as polyether and propylene glycol was released in stages, supporting a rebound in prices. As the end of the month approaches, market demand weakens and epoxy propane prices decline.
Market forecast:
Business Society’s epoxy propane analyst believes that the epoxy propane market has sufficient supply, limited support for raw material prices, weak downstream market demand, and weakened trading atmosphere. It is expected that the focus of the epoxy propane market will decline in the later stage, and more attention should be paid to changes in raw material prices and downstream supply and demand.