This month, the propylene glycol market has shown weak performance, primarily due to sluggish post-holiday demand. On the demand side, terminal demand remained stagnant during the holiday period, and the operating rates of downstream industries significantly declined, leading to a noticeable reduction in the rigid demand for propylene glycol. Export orders were sporadic, providing limited support to the market overall. On the supply side, although some production units were shut down or operated at reduced capacity during the Spring Festival holiday, these units gradually resumed operations after the holiday, maintaining a loose supply level in the market. As a result, manufacturers’ offers continued to decline. On the cost side, the prices of major raw materials initially fell and then rose, with the average price dropping, providing insufficient support to the overall market and contributing to its weak performance.
Looking ahead over the next three months, the propylene glycol market is expected to fluctuate at low levels. On the supply side, although some units may experience short-term shutdowns, production is likely to remain stable for most of the period, ensuring ample supply in the market, which may limit any significant market boost. On the demand side, based on seasonal trends, March to April is traditionally the peak demand season. Under the expectation of “Golden March and Silver April” demand, there may be some room for recovery. However, by May, demand is likely to weaken again. Against the backdrop of oversupply, demand-side factors may not provide sufficient support to the market. In terms of raw materials, prices may initially rise and then fall, offering some cost-side support, but the market is expected to remain in a state of low-level fluctuations.
Post time: Feb-27-2025