Rebound in Demand Improves Propylene Glycol Market in China
- 31-May-2022 6:01 PM
- Journalist: Kim Chul Son
Singapore: In April 2022, it has been observed that the growth of the global economy’s slowed down, and the inflationary pressures intensified across every region. As the Russia-Ukraine war, and COVID-related lockdown in China increased the risk aversion, disrupted the supply chain, and revolved the prices for many commodities. The impact was so severe that the disruptions prevailed in the energy and food sectors. The compiled PMI output by the renowned organizations discussed the sudden slump in the PMI in China's manufacturing sector. As a ripple effect, the demand for Propylene Glycol remained suppressed from the downstream market despite the peak season from the paints and coating industries.
Although in May, the situation improved significantly in the second half, as the Chinese authorities removed restrictions and the market sentiments started to recover slowly against the poured inquiries from the downstream market. In response, it strengthened the producer's will to raise the offered quotations for Propylene Glycol in the Chinese domestic market. In recent terms, the operations at the ports have gathered pace after the onloading and offloading activities paced up to control the high port congestion. In addition, the spot export sentiments were also strengthens against the consistent inquiries from the overseas market, and the mentality of the value chain industry is strong.
As per ChemAnalyst, the current developments in the Chinese market have worn off the pressure from the global Propylene Glycol value chain amidst the seasonal peak from the building and construction material against the tightened supplies. Whereas in the short term, the Chinese market is anticipated to maintain an upward trajectory and the specific trend still needs to be paid more attention to the shift in the supply-demand dynamics, as several players believe that the developments in the Russia-Ukraine war will likely attract numerous European inquiries for Propylene Glycol in the upcoming terms.