Qixiang Tengda epoxy propane plant resumption: supply pattern reconstruction and trade opportunities

Core Business Value of Device Restart

after 4-5 months of technological transformation, Qixiang Tengda's 300000-ton/year propylene oxide plant successfully resumed production, releasing triple commercial values: technological upgrading reduced unit cost by 5-8% and directly improved profitability; Full recovery of production capacity will contribute to the company's profit increment in the second half of 2025 and the first year of 5000-90 million in 2026. Strengthen the competitive position of C3 industrial chain and provide stable supply guarantee for global traders.

The restart of the device will inject 25000 tons/month of new supply into the market, accounting for 7.5 of the total production capacity of 4 million tons/year, which will effectively ease the supply tension and push the price down by 200-500 yuan/ton, returning to a reasonable range. The company expects a net profit of 1900-28.5 million yuan in the first half of 2025, with an epoxy propane plant contributing about 20-30%.

Market pattern reshaping and trade strategy

regional supply optimization effect

located in Shandong, Qixiang Tengda is a key supply hub in East China. The stable operation of the device will significantly improve the balance of supply and demand in East China, reduce cross-regional resource allocation and reduce logistics costs. For global traders, this creates new arbitrage space and supply chain optimization opportunities.

Downstream Linkages and Growth Prospects

the stable supply of propylene oxide directly benefits downstream industries such as polyether polyols and propylene glycol. With the rapid development of new energy vehicles and building insulation materials, demand is expected to maintain a 3-5% annual growth. Polyurethane foam has broad prospects for building energy conservation and automotive lightweight applications, and high-quality products will receive a market premium.

Trade Opportunities and Risk Management

supply chain strategy: Focus on the cooperation opportunities of efficient enterprises after technological transformation, and obtain cost advantages while ensuring stability. It is recommended to establish long-term strategic cooperation with leading technology companies such as Qixiang Tengda to lock in high-quality supply resources.

Inventory Management: Capacity recovery reshapes the balance between supply and demand, traders should adjust their inventory strategies to seize arbitrage opportunities in price fluctuations. Prices are expected to stabilize in the short term, suitable for the establishment of a reasonable safety stock.

Customer Structure Upgrade under the new pattern of relatively sufficient supply, we will focus on developing high value-added customers such as polyurethane and fine chemicals to maximize trade value. Focus on emerging applications such as green chemicals and low-carbon technologies.

The resumption of production of Qixiang Tengda plant marks a new supply cycle for the propylene oxide market, creating important business opportunities and strategic adjustment windows for chemical traders.