Recently, the domestic PO price has dropped several times to the level of nearly 9000 yuan/ton, but it has remained stable and has not fallen below. In the future, the supply side’s positive support is concentrated, and PO prices may show a fluctuating upward trend.
From June to July, the domestic PO production capacity and output increased simultaneously, and the downstream entered the traditional off-season of demand. The market’s expectations for the low price of epoxy propane were relatively empty, and it was difficult to maintain the attitude towards the 9000 yuan/ton (Shandong market) barrier. However, as new production capacity is put into operation, while the total production capacity is increasing, the proportion of its processes is gradually increasing. At the same time, the cost of new processes (HPPO, co oxidation method) is significantly higher than that of traditional chlorohydrin method, leading to an increasingly obvious supporting effect on the market. This is the main reason why epoxy propane has stronger resistance to decline, and also supports the continuous failure of epoxy propane prices to fall below 9000 yuan/ton.

In the future, there will be significant losses on the supply side of the market in the middle of the year, mainly in Wanhua Phase I, Sinopec Changling, and Tianjin Bohai Chemical, with a production capacity of 540000 tons/year. At the same time, Jiahong New Materials has expectations of reducing its negative load, and Zhejiang Petrochemical has parking plans, which are also concentrated this week. In addition, as the downstream gradually enters the traditional peak demand season, the overall market mentality has been boosted, and it is expected that the domestic price of epoxy propane may show a gradual upward trend.