With the prolonged decline in the favorable factors of the raw material propylene, combined with the expected lower demand, the strong PO market seems to be difficult to maintain at a high level. Although individual PO factories in Eastern China made slight adjustments last week to try to stimulate the market, the atmosphere in the market continued to increase, which greatly dampened the popularity of trading and made it difficult for high-end quotations to ship. Where will the future PO market go?

In respect of raw materials, the overall market supply is abundant. The arrival of imported goods and the poor demand for PP powder caused the market to digest slowly. Although the propylene plant was interested in strong quotation, the transaction remained slow and the overall market was exhausted. As the liquid chlorine market increased with the start of downstream operations, demand has picked up, and the overall market has seen a slight improvement.

In the domestic market: The inconsistency of downstream terminal purchases directly affects the consumption of raw material propylene oxide by the polyether plant. Since the beginning of last week, the sales of large singles have been scarce in the market, and the mainstream negotiations have mainly focused on small and medium-sized single customers. In the raw material propylene is running weakly, while the downstream manufacturers are in slow recovery production stage, there is no substantial breakthrough in the demand side, and the market is struggling.

Downstream Market: Despite this week's news of Takahashi and Shell's price increase, the market sent a certain boost, but the market's terminal trading did not change substantially and remained light. The downstream demand of the terminal continued to be sluggish. On the one hand, due to poor demand, a certain amount of finished product inventory in the downstream warehouse of the terminal has not yet been digested; on the other hand, the operating rate of the terminal has been slowly increased, and in addition, there is a certain reserve inventory, and raw material demand is limited. With the high cost and low demand pressure, the overall shipment situation of the polyether market is not satisfactory, and inventory pressure is gradually emerging.

On the whole, the lack of propylene oxide is actually beneficial. However, due to the low supply of imported products and the high price, and the fact that there are maintenance plans for some domestic installations, it is expected that the short-term propylene oxide market will adjust to a narrow range. However, from the long-term market point of view, most domestic terminal downstream inventory gradually consumed, the latter market demand may slowly rise, the market is still slightly up.

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