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[Industry Focus]：Propylene Oxide PO Market Analysis in 2022 and Market Outlook in 2023

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the epidemic that continue to exist in 2022, coupled with international energy, food supplies are relatively tight, and industry, people's consumption and manufacturing have all declined to varying degrees. As the effects of various policies continue to appear, it is expected that the overall economic operation will recover in 2023.

after the 1. epidemic prevention policy change, all over the epidemic peak, and gradually promote the economy completely out of the epidemic haze, bringing aggregate demand improvement and production capacity recovery.

2. expanding domestic demand policy coordination,

will to some extent hedge next year's weak external demand on exports.

3. the impact of the 2022 outbreak on the economy has laid a low foundation for next year's economic recovery. It is estimated that in 2023, China's economy will achieve more than 5% growth.

in terms of polyurethane raw materials, in 2022, in the global inflation, repeated epidemics, new capacity continued to release of the macro and industry background, the market supply and demand pattern from top to bottom, PO market showed a range down, narrow fluctuations in the trend.

Propylene Oxide Market Price in
China

2022, affected by the dynamics of Shandong manufacturers, China's PO market price changes are still obvious. Shandong, North China bulk water cash factory average annual price of about 10163 yuan/ton, down 38.3 percent year-on-year; East China bulk water cash delivery average price of about 10309 yuan/ton, down 38.2 percent year-on-year.

12021-2022 China Propylene Oxide Price Trend Chart

环氧丙烷价格.jpg

China Propylene Oxide Capacity & Output,

the successful trial production of Taixing Yida's 150000-ton propylene oxide project in 2022, and the successful trial operation of Tianjin Bohua's 20/450000-ton PO/SM equipment. PO production capacity was further released, with the total production capacity increasing by 14% to 4.897 million tons/year. At present, there is still the second phase of Zhejiang Petrochemical Project. PO/SM Dongfang Shenghong 20/450000 Ton Project SM/PO This equipment is under planning or construction, and China's PO production capacity will continue to increase in the future. In 2022, total domestic PO production was 3.76 million tons, up 8.7 percent year-on-year, the highest in recent years.

China Propylene Oxide Import & Export

According to China Customs Network, from January to November 2022, China's PO imports were 290000 tons, down 26.3 percent year-on-year. Thailand, Japan and other major importers. From January to November 2022, China's export volume increased by 268.3 to 9000 tons year-on-year, with export destinations mainly including India and the United States.
2022, Saudi Arabia, Japan, South Korea, Thailand, Europe and other overseas propylene oxide production units have negative maintenance dynamics, partly due to annual routine maintenance, partly due to negative operation such as energy crisis and cost pressure, domestic manufacturers continue to expand energy, in recent years, China's propylene oxide imports have decreased, external dependence has decreased significantly...

China Propylene Oxide Consumption

the
of 2022, China's PO consumption showed a weak trend, year-on-year growth of only 4.2.

increased annual PO production as new capacity was released, but the demand side performance was lower than expected. In the second quarter of 2022, East China lifted the seal, but there was no significant rebound on the downstream demand side in July, and overall market sentiment was relatively sluggish. Although there are individual fluctuations on the supply side, the overall operation is loose. From the consumer industry, polyether is still the largest downstream of PO. In 2022, the domestic consumption of polyether decreased by 8.3 year on year, followed by PG/DMC, propylene glycol ether PM,TCPP flame retardant, isopropanolamine...
In 2023, Tianjin Sanpetrochemical and Zhejiang Petrochemical propylene oxide units will be put into operation soon, and many sets of units such as Minxiang Technology and Jufeng New Energy are expected to be put into use. Although the negative price protection operation will continue to be reduced in 2022, the industry operating rate will remain at 55% to 68% except for routine fault maintenance, but the effect will be very different from that in 2021. In addition to the unstable demand base of cyclopropyl, with more new roles, price competition will be more intense. The supply and demand pattern of cyclopropyl shifts from equilibrium to easing, profit margins gradually shrink, and pricing discourse gradually tilts to the middle and lower reaches. At that time, the price will be the most direct embodiment.

Source: Tiantian Chemical

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