The Propylene Oxide Market Saw an Upward Shift in Its Price Center in August

In August, the domestic propylene oxide market in India experienced significant price fluctuations, ultimately resulting in an upward shift in the price center. The benchmark price for propylene oxide reached 9,350 RMB/ton by the end of the month, reflecting a 1.63% increase from the beginning of August.

The rise in prices was largely driven by strong cost-side support. The feedstock propylene saw its benchmark price increase by 10.01% over the month, reaching 8,721.00 RMB/ton by August 31. This increase was influenced by rising international oil prices due to geopolitical tensions, which solidified the cost floor across the industry chain. As a result, many production processes within the industry operated at a loss, establishing a strong price floor for propylene oxide.

On the supply side, the market faced tight conditions due to a series of plant maintenance shutdowns. Domestic production of propylene oxide in August totaled 499,800 tonnes, marking a decrease of 0.64% month-on-month and 5.70% year-on-year. The capacity utilization rate dropped to 60.25%, with several major units offline, including those at Zhenhai Phase II, Qixiang, Lianhong, and Satellite Chemical. An unexpected shutdown of Wanhua Chemical's Phase III unit further tightened spot supply, with total production losses due to maintenance reaching approximately 220,000 tonnes.

Despite these supply constraints, demand remained weak throughout August, impacting overall market performance.

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