New and old technologies of propylene oxide enter the era of low profit alternately

wallpapers Industry 2020-12-09
The propylene oxide Market of

this year is not the same as that of previous years - the price has dropped sharply, the profit space of merchants has been squeezed, and the bearish mood in the market has not stopped. Just when the insiders thought that the propylene oxide market had completed the bottom, the market fell sharply again last week, with a weekly drop of 900 yuan (ton price, the same below), breaking through the 10000 yuan mark at one stroke, ranking the top three in the chemical market decline list. At present, the mainstream quotation of Shandong market is 9200-9300 yuan, a new low in recent five years. Director Zhu of PetroChina Northeast Sales Company believes that in the future, negative factors still dominate, and propylene oxide is still difficult to stop. The supply of

and

is expected to increase. In the second half of the year, China's propylene oxide production capacity is still released, which has become the biggest factor restricting the market. Director Zhu said that Yantai Wanhua chemical plant with an annual output of 240000 tons is planned to be put into operation in July. At the end of June, Hunan Changsheng plant with an annual output of 100000 tons of propylene oxide was started. At the same time, Tianjin Dagu plant with an annual output of 150000 tons of propylene oxide was restarted on July 8, with the load increased to 70%. The products will soon enter the market. The supply side is expected to increase, forming a serious blow to the market mentality. In addition, hongbaoli plans to raise 500 million yuan for the construction of an annual output of 120000 tons of propylene oxide project. The products of the project are mainly for self use. Last year, the company's output of propylene oxide reached 110000 tons. The new project will result in a significant reduction in the volume of external mining. Compared with the scarce market in the previous two years,

and

show signs of overcapacity with the continuous increase of new propylene oxide plants. The market price continued to decline, down more than 20% compared with the same period last year. Especially, the "breaking 10000" still did not trigger the market safe value covering. At present, the profit of propylene oxide is only a few hundred yuan. The bearish mood of the industry is more than one hundred yuan. They feel that the dawn is fading away and their confidence is lost. At the same time, foreign low-cost goods continue to pour in, averaging about 20000 tons per month, intensifying market competition. The demand of

and

enters the off-season, and

and

polyether are the largest downstream of propylene oxide. Affected by the cost transmission, in July, the market price of soft foam polyether also broke the historical low point. The actual single mainstream negotiation in Shandong was only 10300-10400 yuan, a decrease of 18% compared with the same period of last year, reaching a new low in recent three years. The biggest application field of

,

and "soft foam polyether" is cushion materials. However, in the hot summer season, the demand for sofas, seats, mattresses, pillows, etc. has declined, leading to the low production rate of downstream terminal enterprises. At the same time, the outdoor construction is limited, the real estate and other construction industries enter the off-season, the demand of the whole polyurethane industry is affected, and the manufacturers are full of worries about the future market. " A soft bubble production enterprise sales manager Zhang said.

and

in July and August were the off-season demand for traditional chemicals, and the de stocking of the market was very long. It was hoped that the market price of "gold, silver and ten" would rise sharply. However, it is still difficult for market participants to give over optimistic expectations for the second half of the year. Manager Zhang said that polyether will struggle in the weak vortex of low start-up and low price. The weak demand has broken the confidence of polyether manufacturers in the future market. The market atmosphere is "dead" and there is no hope of "Reviving" in the short term. The raw material support of

and

has weakened. Since this year, as raw materials of propylene oxide, propylene market has been affected by the increase of domestic new production capacity, and the overall market price is mainly low and small fluctuations, and there is no new breakthrough. In the future, the propylene market will continue to be under pressure.

and

first of all, from the perspective of Asian propylene market, after the previous continuous decline, the import price has been flat or lower than the domestic price. With the resumption of Asian steam cracking units, the subsequent import of propylene will be expected to increase. At the same time, Yangquan Hengtong and Ningbo Haiyue units are running smoothly, and the domestic propylene supply pressure is not reduced. Secondly, the downstream market of propylene is in a downturn, and the profit is not good. Especially in the current stock market, futures, crude oil and other general environment pessimistic, terminal demand is still weak, it is difficult to form a good for the propylene market. Therefore, on the whole, it is expected that the short-term propylene market will continue to be weak, and the support for propylene oxide is difficult to strengthen.

,

suck up, and after the market plunged 9%, the industry still saw empty propylene oxide Market, and the supply side, demand side and cost side were all not strong. Propylene oxide or deducting "no lowest and only lower" market situation, the market price or new low.


TRUNNANO (aka. Luoyang Tongrun Nano Technology Co. Ltd.) is a trusted global chemical material supplier & manufacturer with over 12 years' experience in providing super high-quality chemicals and Nanomaterials. The nitride powder produced by our company has high purity, fine particle size and impurity content. Please contact us if necessary.