Recent Market Intelligence Report on Tripropylene Glycol (TPG)

I. Price Trends
- Recent Quotations:
- May 26, 2026: Wuhan Hengjiu Chemical Co., Ltd. (Hubei Province) quoted imported TPG at RMB 12,500/ton; Suzhou Senfeida Chemical Co., Ltd. (Suzhou City, Jiangsu Province) quoted premium-grade TPG at RMB 19,000/ton; Shandong Hongyang Chemical Co., Ltd. quoted TPG at RMB 7,400/ton (Shandong Province); Shandong Qiangsen Chemical Co., Ltd. quoted TPG at RMB 13,000/ton (Zibo City, Shandong Province); Shandong Xima Supply Chain Management Co., Ltd. quoted TPG at RMB 12,500/ton (Zibo City, Shandong Province); Shandong Beilu Hengsheng Chemical Co., Ltd. quoted domestic TPG monomethyl ether at RMB 14,500/ton (Shandong Province).
- May 25, 2026: Quotations from Wuhan Hengjiu Chemical Co., Ltd. and Shandong Qiangsen Chemical Co., Ltd. remained unchanged versus May 26; Shandong Xima Supply Chain Management Co., Ltd. quoted TPG at RMB 12,500/ton (Zibo City, Shandong Province).
- May 22, 2026: LyondellBasell imported TPG quoted at RMB 12,500/ton (Wuhan City, Hubei Province); Suzhou Senfeida Chemical Co., Ltd. quoted TPG at RMB 19,000/ton (Suzhou City, Jiangsu Province); Shandong Hongyang Chemical Co., Ltd. quoted TPG at RMB 7,400/ton (Shandong Province); Shandong Qiangsen Chemical Co., Ltd. quoted TPG at RMB 13,000/ton (Zibo City, Shandong Province); Shandong Xima Supply Chain Management Co., Ltd. quoted TPG at RMB 12,500/ton (Zibo City, Shandong Province).
- May 19, 2026: The benchmark price of TPG monomethyl ether stood at RMB 13,250/ton—down 4.4% from the beginning-of-month level of RMB 13,860/ton, marking a yearly low.

- Price Volatility Characteristics:
- Ordinary TPG quotations ranged widely from RMB 7,400 to RMB 19,000/ton, reflecting pronounced regional price differentials (e.g., a RMB 11,600/ton gap between Shandong and Jiangsu provinces).
- TPG monomethyl ether prices exhibited a downward trend; as of May 19, its benchmark price was RMB 1,233.33/ton lower than the annual peak of RMB 14,483.33/ton.

II. Market Drivers
- Cost Side:
- Propylene oxide (PO), a key raw material, continued declining in price; as of May 15, the mainstream spot ex-factory price in Shandong Province fell to RMB 9,500/ton (cash basis), down 6.86% from pre-holiday levels—eroding cost support for TPG.
- Prices of upstream feedstocks—including propylene and chlorine—remained weak, further compressing PO profit margins and exerting downward pressure on TPG production costs.

- Supply Side:
- Industry operating rates remained high, averaging 74% during the first half of May—a rise of 8 percentage points month-on-month—with increased availability of spot inventory in the market.
- Although some manufacturers plan scheduled maintenance shutdowns by month-end, overall supply pressure remains elevated, prompting producers to offer discounts to accelerate sales.

- Demand Side:
- Downstream industries have entered their off-season; the unsaturated polyester resin sector’s operating rate declined by 3 percentage points post-holiday, reflecting sluggish end-market demand from infrastructure and real estate sectors.
- The polyether industry faces headwinds from adjustments to export tax rebate policies and persistently weak end-user demand, potentially driving further declines in operating rates and weakening procurement enthusiasm.
- Export orders remain modest, and prevailing market sentiment is bearish—insufficient to sustain pricing.

III. Regional and Brand-Based Price Differentials
- Regional Disparities:
- As the primary production base, Shandong Province features concentrated quotations ranging from RMB 7,400 to RMB 13,000/ton, benefiting from relatively low logistics costs.
- In contrast, Suzhou City (Jiangsu Province) commands a premium—RMB 19,000/ton for premium-grade TPG—reflecting brand value and regional supply-demand imbalances.

- Impact of Brand and Specification:
- Standard industrial-grade TPG carries comparatively low prices (e.g., RMB 7,400/ton from Shandong Hongyang Chemical), whereas premium or imported grades command significantly higher prices (e.g., RMB 19,000/ton from Suzhou Senfeida).
- TPG monomethyl ether, owing to its specialized applications, trades at a premium over ordinary TPG—but has recently experienced steeper declines due to demand weakness.

IV. Analysis and Outlook
- Short-Term Trend:
- Price Movement: Under triple pressure—falling input costs, ample supply, and weak demand—TPG market prices are likely to remain weak and range-bound; ordinary TPG prices may drift downward to RMB 7,000–12,000/ton.
- Regional Divergence: Prices in major producing regions such as Shandong may decline further amid intensifying competition, while high-end markets like Jiangsu could maintain relatively elevated quotations—albeit with muted trading activity.

- Medium-to-Long-Term Outlook:
- Cost Support: Should propylene oxide prices continue falling, TPG cost support will remain fragile, potentially pushing prices lower.
- Demand Recovery: A rebound in downstream demand—particularly from unsaturated polyester resins and polyethers—depends critically on seasonal recovery and broader macroeconomic improvement, especially in infrastructure investment and real estate.
- Supply Adjustment: A substantial reduction in industry operating rates—driven by losses or widespread maintenance—could tighten supply and provide upward price support.

- Risk Factors:
- Fluctuations in international crude oil prices may indirectly impact TPG via feedstock cost changes (e.g., propylene).
- Stricter environmental regulations could force temporary shutdowns at certain facilities, triggering short-term supply shortages and associated price volatility.