Recently, domestic propylene oxide prices have continued to rise.
According to data from SunSirs, the benchmark price of propylene oxide reached 8,200.00 yuan/ton on January 30, an increase of 6.03% compared with the beginning of this month, and an increase of nearly 10% during some periods during the month.
Some chemical companies have full orders for propylene oxide-related products, and production has been scheduled until February.
This propylene oxide price fluctuation is directly related to policy adjustments.
According to previous announcements issued by the Ministry of Finance and the State Administration of Taxation, starting from April 1, 2026, the export value-added tax rebate for 249 products such as polyether will be cancelled.
This policy caused polyether companies to place export orders in advance, and downstream polyether companies actively competed for production orders, thus driving a significant increase in propylene oxide consumption.
From the perspective of supply and demand, the current overall inventory of the propylene oxide industry remains low, and spot circulation is tight.
Baichuan Yingfu data shows that as of January 18, the inventory of propylene oxide plants was 27,500 tons, a decrease of 3.85% from last week and a decrease of 10.71% from the same period last year.
On the demand side, in addition to the factor of front-loading export orders, the demand for replenishment in the domestic trade market is also released simultaneously, which jointly promotes a significant increase in market activity.
At the same time, the price of raw material propylene has risen simultaneously, providing strong cost support for the price of propylene oxide.
As an important intermediate in the petrochemical industry, 78% of the production capacity of propylene oxide is used to produce polyether polyols, which are ultimately used in polyurethane, oilfield chemicals and other fields.
Its price changes have a significant transmission effect on the upstream and downstream industrial chains. The prices of upstream raw materials and downstream products fluctuate with the price of propylene oxide.
The Bank of China Securities research report mentioned that the cancellation of the polyether export tax rebate policy has triggered companies to advance export orders, increasing the market demand for polyether and further driving the consumption of propylene oxide.
Tianfeng Securities pointed out that the supply side of the domestic propylene oxide market continues to be tight, coupled with the “last bus” effect of the export tax rebate policy, the operating rate of downstream polyether companies has increased, driving the demand for raw material procurement and pushing the price center upward.
Zhuochuang Information said that the early industry inventory fell to the lowest level in the year, driven by the combination of pre-holiday replenishment and post-holiday demand. The reduction in spot circulation drove the price upward. The subsequent release of incremental supply combined with the cautious attitude of the downstream, high-level buying momentum may have cooled down, but the price center will still maintain a high level.
The propylene oxide industry chain and related companies will be sorted out below.
On the upstream raw material side, there are many companies providing raw materials for propylene oxide production.
Sinopec is engaged in petroleum refining, production and sales of synthetic resins, synthetic fibers, etc., and can supply propylene, the raw material required for the production of propylene oxide.
PetroChina engages in oil and gas exploration and development, refining and chemical engineering, and has propylene production capacity. It is an upstream raw material supplier in the propylene oxide industry chain.
Rongsheng Petrochemical is mainly engaged in the research and development, production and sales of various petrochemical products. It has propylene-related production capacity and provides raw material support for the production of propylene oxide.
At the midstream propylene oxide production end, Binhua Co., Ltd. is mainly engaged in the research and development, production and sales of propylene oxide, caustic soda and other products. Recently, product prices have risen, and downstream procurement demand has increased.
Wanhua Chemical covers polyurethane, petrochemical and other industrial sectors, has propylene oxide production capacity, and relies on an integrated industrial chain layout to carry out propylene oxide production business.
Hongbaoli focuses on the production and sales of polyurethane rigid foam combination polyether, isopropanolamine and propylene oxide and other products, and carries out business related to the production of propylene oxide.
On the downstream application side, Levima Newco is engaged in the production and sales of polyether polyols and other products. Polyether polyols use propylene oxide as the main raw material. Recently, production arrangements have been adjusted due to the advance export orders.
Kingfa Technology mainly produces high-performance plastic composite materials, completely biodegradable plastics and other products. Some polyurethane products use polyether polyols downstream of propylene oxide.
Shenjian Co., Ltd. is engaged in the research and development, production and sales of polyester resin, epoxy resin and other products for powder coatings. The production of related products involves the downstream industrial chain links of propylene oxide.
To sum up, the rise in the price of propylene oxide and the heating up of the polyether industry chain are affected by various factors such as policy, supply and demand.
In the future, with the implementation of policies and market changes, enterprises in each link of the industrial chain will face different opportunities and challenges.
