Price hikes within the chemical sector are being driven primarily by two factors: a mismatch between supply and demand, along with policy-driven factors. The Ministry of Finance recently cancelled export tax rebates on polyether, resulting in a rush by downstream manufacturers to place orders despite limited product availability. This created a significant uptick in orders for propylene oxide.
In the domestic market of China, PO prices increased significantly w-o-w. In January xxxx, PO prices rose by x.xx in the domestic market of China due to maintenance at several plants that caused supply shortages. Maintenance shutdowns in major PO-producing areas such as Shandong and East China reduced the operating rate to xx.xx. This reduction in PO supply significantly increased prices.
Feedstock propylene prices also increased in recent weeks due to tight supply and firm demand. In Qingdao and Yantai, two PDH...
