According to the Business Society Spot News, the propylene glycol market showed a trend of first falling and then rising in the second half of May, with a V-shaped recovery. Affected by the continuous weakening of raw material prices in the middle of the month, market prices fell to a stage low point at one point; At the end of the month, driven by the rebound of raw materials and periodic replenishment, prices quickly rebounded. As of May 29th, the average production price of propylene glycol in Shandong region was 10000 yuan/ton, an increase of 2.39% compared to the middle of the month.

Core driving factors
On the raw material side, epoxy propane has stopped falling and rebounded, but the support is still weak
After experiencing a significant decline, the raw material epoxy propane experienced a corrective increase at the end of the month due to the stabilization of upstream propylene and liquid chlorine prices, as well as the impact of some equipment maintenance, which drove up the cost line of propylene glycol and was the direct cause of the rebound in propylene glycol prices. However, the supply and demand of epichlorohydrin are still relatively loose, and the sustainability of the rebound is questionable. The cost support of propylene glycol is not yet fully stable, making it difficult to sustain a significant price increase.
Supply side: high operating capacity+inventory pressure, limiting rebound space
The operating rate of domestic propylene glycol plants remains above 70%, with sufficient spot supply and ongoing inventory pressure on enterprises. The rebound at the end of the month is more passive in following up with rising raw materials, rather than actively pulling up prices. Some companies plan to conduct maintenance in June, and if the maintenance is implemented, it may temporarily alleviate supply pressure.
Demand side: Weak off-season, insufficient sustainability in replenishing inventory
Downstream industries such as unsaturated resins and coatings are still in the traditional off-season, with insufficient terminal orders. Enterprises tend to purchase on demand, and month end restocking is mostly a short-term behavior, making it difficult to form a sustained demand pull.
Market forecast:
There is still support on the cost side, but the sustained upward momentum is weakening. The expectation of tight supply side still exists, and device fluctuations are the key variable. It is expected that propylene glycol will experience strong fluctuations in the short term. Attention should be paid to the trend of epoxy propane prices, downstream inventory replenishment, and whether the expected supply contraction caused by some equipment maintenance has been implemented.