Propylene glycol

Propylene Glycol Market Dynamics Report (Recent Commodity Market Intelligence)

I. Price Trends

1. Overall Price Trend:
- On July 7, 2026, the Binsse.com benchmark price for propylene glycol stood at RMB 8,716.67 per metric ton, reflecting volatility compared to the previous day.
- On July 3, the spot quotation for propylene glycol was RMB 8,866.67 per metric ton, down by RMB 166.66 per metric ton (a decline of 1.84%) from the prior day.
- Over the past week, the price declined cumulatively by RMB 166.66 per metric ton (–1.84%); over the past month, it fell by RMB 900 per metric ton (–9.22%).

2. Regional Price Variations:
- Within Shandong Province, notable price disparities exist. For instance, Shandong Langcheng Chemical Co., Ltd. quoted RMB 5,600 per metric ton for propylene glycol produced by Shida Shenghua; whereas Shandong Hongyang Chemical Co., Ltd. quoted RMB 9,500 per metric ton for the same brand.
- In Changzhou City, Jiangsu Province, Changzhou Aozun Composite New Materials Co., Ltd. quoted RMB 6,500 per metric ton for Shida Shenghua–produced propylene glycol.
- In Shanghai, Shanghai Juexin Industrial Development Co., Ltd. quoted RMB 13,500 per metric ton for LG Chem (South Korea)–produced propylene glycol, while domestic-grade propylene glycol was priced at RMB 9,000 per metric ton.

3. Brand- and Specification-Based Pricing:
- Prices vary significantly across brands and specifications. For example, Zhongsu Supply Chain Management (Shandong) Co., Ltd. quoted RMB 9,200 per metric ton for domestic propylene glycol (purity ≥99.5%), whereas Nanjing Baitu Chemical Co., Ltd. quoted RMB 11,000 per metric ton for domestic propylene glycol labeled as “premium grade” (purity not explicitly specified).
- Pharmaceutical-grade propylene glycol commands higher prices than industrial-grade. For instance, Jinan Angxin Chemical Co., Ltd. quoted RMB 8,600 per metric ton for domestic pharmaceutical-grade propylene glycol.

II. Market Dynamics

1. Supply Situation:
- The propylene glycol market is well-supplied. Most producers are operating their facilities stably; although some enterprises have scheduled maintenance shutdowns, overall industry operating rates remain high, offering limited relief from supply pressure.

2. Demand Situation:
- Downstream demand remains weak: the unsaturated polyester resin sector is in its off-season, while end-user sectors such as infrastructure construction and real estate exhibit sluggish demand.
- The polyether sector faces headwinds due to adjustments in export tax rebate policies and persistently weak terminal demand, suggesting further downward pressure on operating rates.

3. Cost Factors:
- Propylene oxide—the primary raw material for propylene glycol—has seen continuous price declines, weakening cost support for propylene glycol.
- Prices of upstream feedstocks—including propylene and liquid chlorine—remain soft, further eroding cost support for propylene oxide.

4. Market Sentiment:
- Market sentiment is markedly bearish: since peaking in April, propylene glycol prices have retreated cumulatively by over RMB 2,500 per metric ton.

III. Analysis and Outlook

1. Short-Term Outlook:
- Constrained by falling input costs, rising supply, and sluggish demand, the propylene glycol market is expected to remain weak and range-bound in the near term.
- Close attention should be paid to trends in propylene oxide pricing, production facility operating rates, and downstream procurement rhythms to gauge short-term market direction.

2. Medium- to Long-Term Outlook:
- Absent a clear improvement in downstream demand, the propylene glycol market may continue facing downward pressure over the medium to long term.
- While rapid development in emerging sectors—including new energy and advanced materials—may drive growing demand for propylene glycol in high-end applications, such growth is unlikely to meaningfully alter the overall supply-demand balance in the near term.

IV. Forecast

1. Price Forecast:
- In the short term, propylene glycol prices may continue declining slightly or remain weak and range-bound; the extent of any further decline will hinge on the pace of downstream demand recovery and the strength of cost support.
- Over the medium to long term, prices may continue under downward pressure if downstream demand fails to improve significantly; conversely, price stabilization or rebound could occur if demand recovers or cost support strengthens.

2. Market Trend Forecast:
- As supply-demand relationships gradually adjust, the propylene glycol market is expected to move progressively toward equilibrium.
- Enterprises are advised to closely monitor market developments and policy changes, and promptly adjust production plans and sales strategies to navigate evolving market challenges.