2024 propylene glycol semi-annual analysis: The first half of the industry losses under pressure in the second half of the market cautious

In 2024, the propylene glycol industry is in a period of centralized capacity expansion, and in the first half of the year, the new capacity at home and abroad is 261.25 million tons/year, an increase of 31.3%, and the propylene glycol market is adequately supplied. The raw material propylene oxide is running at a high level, and the comprehensive profit level of PO transesterification enterprises is hovering around the cost line, and the profit level is hardly optimistic. In the downstream aspect, the demand recovery is insufficient, the industry starts to remain low, the terminal market still needs to be consolidated and strengthened, the domestic propylene glycol industry chain is facing many challenges, and the focus of the propylene glycol market has shifted significantly.

In the second half of 2024, the propylene glycol industry will release production as scheduled with new production plans, and the domestic supply is still growing. Tongling Jintai, Hunan Zhongchuang, Lianyi, Wanhua and other enterprises have new production capacity, and it is expected that the new production capacity will exceed 500,000 tons. The downstream market demand growth is expected to be less than the growth rate of supply, the market supply and demand situation continues to be excess, prices are not easy to rise, manufacturers are still facing greater cost pressure, it is expected that the mainstream acceptance of propylene glycol factory in China is 6900-7500 yuan/ton.