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

In August, the domestic propylene oxide market in India showed significant price fluctuations, ultimately resulting in an upward shift.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 cost of raw materials played a crucial role in this price adjustment. The feedstock propylene's price surged to 8,721.00 RMB/ton, marking a 10.01% increase from earlier in the month. This rise was influenced by higher international oil prices driven by geopolitical tensions, which established a strong cost floor across the industry. Consequently, many production processes faced financial losses, reinforcing the price floor for propylene oxide.

On the supply side, the market experienced tightness due to several plant maintenance shutdowns. Domestic production of propylene oxide in August was 499,800 tonnes, showing a decline of 0.64% month-on-month and 5.70% year-on-year. The capacity utilization rate dropped to 60.25%. Notable shutdowns included those at Zhenhai Phase II, Qixiang, Lianhong, and Satellite Chemical, with an unexpected shutdown at Wanhua Chemical's Phase III unit further tightening the supply. Maintenance-related production losses were significant, totaling approximately 220,000 tonnes.

Despite these factors, demand remained weak throughout August, which could potentially impact future pricing dynamics.

Stay ahead of market trends with the Credco app. For any queries, please reach out via WhatsApp at +91 8448083211.