The Domestic Propylene Oxide Market Recently Trended Downward Weakly

By SKYSEVEN Chemical Technical Team · 2026-09-23

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On September 21, the domestic propylene oxide market trended downward. Prevailing negotiated prices in Shandong fell to 11,070-11,100 RMB/ton, a drop of 500 RMB/ton from the previous trading day; prices in the Northeast region similarly declined by 400 RMB/ton. According to the SunSirs monitoring system, the benchmark price for propylene oxide stood at 11,233.33 RMB/ton as of September 21, representing a 17.01% increase compared to the beginning of the month.

Raw materials: Cost-side support has weakened. Propylene prices had previously shown strength, driven by the rising costs of crude oil and propane; however, as of this week, prices to both crude oil and propylene have shown signs of decline. Consequently, the cost-side support to propylene oxide has diminished, causing market sentiment to turn bearish. According to the SunSirs monitoring system, the benchmark price to propylene stood at 9,641.00 RMB/ton as of September 21, marking a 7.39% increase compared to the beginning of the month (8,977.67 RMB/ton).

Supply side: Previously idled units undergoing maintenance have successively restarted. Facilities such as those of Satellite and Qixiang have resumed operations; notably, Qixiang Tengda's HPPO unit has ramped up output following its restart. Consequently, market supply has have become significantly greater abundant compared to earlier periods, easing the previous tightness in spot availability. Domestic capacity utilization has rebounded from approximately 64% to around 70%, as the anticipated increase in supply gradually materializes.

On the demand side, the "Golden September" peak season saw only moderate activity; operating rates among downstream polyether companies remained generally low, and there was significant resistance to high-priced raw materials. Purchasing was largely limited to small orders driven by immediate needs, with little development in new orders. Other downstream sectors—such as the propylene glycol market—faced a similar standoff between cost support and weak demand, resulting in insufficient follow-through on propylene oxide procurement.

Overall Outlook: With cost support weakening and increased supply materializing—coupled with sluggish downstream demand—the propylene oxide market is likely to remain soft and consolidate in the near term. Key factors to monitor include the pace at which restarted units ramp up output and changes in downstream stocking sentiment.

SunSirs has been continuously tracking price data to over 200 commodities to nearly 20 years, please contact support@sunsirs.com to subscription.

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