China’s PO domestic prices rebound after six weeks of decline

SINGAPORE (ICIS)–The propylene oxide (PO) domestic market in China saw a rebound following six consecutive weeks of declines, supported by reduced stock pressure of local producers, according to market sources on Friday.

Some local producers initiated price hikes of varying extent during the week, reflecting their respective easing stock pressure after offloading volumes during the past weeks of downtrend, market participants noted.

Offers for PO domestic material originating from Shandong rose to around yuan (CNY) 12,100/tonne ($1,971/tonne) EXW (ex-works) on cash payment terms on 28 November, an increase compared to CNY11,700-11,900/tonne EXW on 21 November, market sources said.

Prior to this rebound, domestic prices had been on a decline over six consecutive weeks, falling from CNY14,400-14,700/tonne  DEL east China in the week ended 10 October to CNY12,100-12,400/tonne DEL east China in the week ended 21 November, on cash payment terms, according to ICIS data.

The price decline was largely because local availability outstripped flat demand conditions, market players said.

 ($1 = CNY6.14)