China’s propylene carbonate market remained under pressure throughout May 2026 as easing feedstock costs and cautious downstream procurement continued weighing on sentiment. While April provided a relatively stronger pricing base, market focus shifted toward May’s weakening fundamentals, particularly softer buying interest from battery electrolyte, solvent, and electronics sectors. Propylene carbonate demand remained stable in volume terms but lacked the momentum necessary to absorb comfortable inventories across eastern China. At the same time, lower propylene oxide costs reduced production expenses and encouraged suppliers to offer more competitive pricing. Sellers increasingly widened discounts to maintain sales volumes, reinforcing the bearish tone across the market. Inventories remained adequate at major coastal hubs, limiting the potential for supply-driven support. Although the concentration of production capacity in Shandong remains a factor worth monitoring, current market conditions continue to favor buyers. Looking ahead, propylene carbonate prices are expected to remain under pressure unless feedstock costs recover or downstream demand improves materially.
