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PO&PPG Market in Fluctuation

Recently we have received information from market participant, the main content is as follows:

According to the previous information. PO/PPG price waxed and waned in the first quarter of 2017. And it is expected that PO/PPG price will remain stable due to the low inventory and steady demand. Shandong polyether polyols market started decrease after the end of April, it decreased by RMB 200yuan/ton in May 5th and then decreased by RMB 100yuan/ton in May 8th by the influence of low inventory. Followed by polyether polyols, PO price also decreased to RMB 8600-8700/ton in May 10th. It is expected that the price of PO and PPG will fluctuate in a small range. Main reasons are follows:

First, all PO factories is in low inventory with a low operation load, which means that it’s hard to supply stably in recently.

Second, the price decreased sharply since April 5th and it falls by RMB 500-600yuan/ton in 5 days, with a decrease of 5.9%. It is expected that PO price will turn to stable in the near future, but the exact time is uncertain.

Third, the rigid foam market performances well but markets of polyether polyols, elastomer and foam are not so good. But the market is always driven by the demand and there is still demand.

Fourth, PO and PPG price has a significance influence on the polyether polyols. If the price of PO and PPG increasing, there is no doubt that this will have a big impact on the market.

Fifth, whether the market can improve depends on downstream market.