Rising Demand to inflate Propylene Oxide market across the Globe
- 26-Apr-2022 4:17 PM
- Journalist: Nina Jiang
The prices of Propylene Oxide have been surging in the past few months, and it is most likely to rise further in the upcoming weeks as well. Propylene Oxide is a well-known Propylene derivative, which majorly finds its usage in producing Polyurethane and Polypropylene Glycol. As propylene is the upstream for propylene oxide, the recent fluctuations in Propylene prices have been significantly impacting the market of Propylene Oxide.
The market for Propylene oxide witnessed a consistent hike in the prices on the back of strong downstream demand and enhanced upstream cost. The escalated consumption of Polyurethane in the construction, automobile, and healthcare industry, drove the Propylene Oxide market. Furthermore, the increased enquiry about Polypropylene Glycol from the fibreglass plastics industry propelled the prices of Propylene Oxide in several countries. Meanwhile, the value of Propene was constantly surging, which incremented the production cost involved in manufacturing Propylene Oxide, hence leading to its high price value.
In addition, the skyrocketing crude oil prices, augmented freight charges, congested ports, cargoes, and labour shortages amid the continued conflict between Russia and Ukraine exacerbated the prices of Propylene Oxide across the globe. The prices of Propylene Oxide in the Indian domestic market assembled at USD 2871.25/MT Ex-Mumbai during March, which kept inclining during the following weeks of April. In the USA, the evaluated prices of Propylene Oxide for March were USD 3725/MT FOB Ohio. However, the trend of Propylene Oxide remained to fluctuate in the Chinese market owing to another outbreak of Covid-19 and the suddenly imposed lockdown in several commercially essential regions.
According to ChemAnalyst, “The soaring Polyurethane market would put forth huge demand for Propylene Oxide, which would surge its prices. Besides, increasing Propene prices would also contribute readily to the price hike of Propylene Oxide world-wide. The escalating energy cost and logistic charges are most likely augment the price value of Propylene Oxide. However, the Propylene Oxide market would keep fluctuating in China due to the Covid-19 related uncertainties.”