Brief Analysis of Propylene Glycol Industry Chain
1. Industrial chain
The propylene oxide transesterification method accounts for more than half of the domestic DMC production capacity. This method has the advantages of mature technology, mild reaction conditions, small equipment investment, high production safety, high reaction efficiency, and high product purity; and consumes carbon dioxide during the production process. The by-product is ethylene glycol or propylene glycol, wherein propylene glycol has higher added value, and is mainly used in fields such as unsaturated resin and polyether at present, and overall consumption field and demand limit the expansion of this preparation method to a certain extent. Propylene oxide is the most important upstream raw material of propylene glycol, and its price changes have a greater impact on the price of propylene glycol. In 2020, the overall crude oil price rise will drive the price of propylene oxide to continue to rise, and the upstream cost will increase significantly. The price of propylene glycol will continue to be under pressure, driving the price of propylene glycol. Continued volatility rises.
2. Downstream consumption of propylene glycol
Propylene glycol is an important raw material for unsaturated polyester, epoxy resin, and polyurethane resin. The consumption accounts for about 50% of domestic propylene glycol, and it is widely used in surface coatings and reinforced plastics. Propylene glycol has good viscosity and hygroscopicity, and is non-toxic, so it is widely used as a hygroscopic agent, antifreeze, lubricant, and solvent in the food, pharmaceutical, and cosmetic industries. In the food industry, propylene glycol reacts with fatty acids to form propylene glycol fatty acid esters, which are mainly used as food emulsifiers; propylene glycol is also an excellent solvent for seasonings and pigments.

Propylene Glycol Supply and Demand Status
1. Propylene Glycol Output
As far as the current situation of my country's propylene glycol supply is concerned, with the continuous expansion of domestic production capacity of the overall transesterification method, my country's propylene glycol production capacity has begun to pick up, superimposed on the substantial international growth of propylene glycol, and the overall production of propylene glycol in my country has continued to grow in recent years. Data show that in 2022 my country's propylene glycol production will be about 440,000 tons, an annual increase of nearly 100,000 tons compared with 2021. With the overall production of propylene glycol showing a situation of oversupply, it is expected that the production growth in 2023 will be limited.
2. Apparent consumption
As far as the consumption of propylene glycol is concerned, the domestic consumption of propylene glycol in 2019 was nearly 350,000 tons at one point. With the impact of the 2020 epidemic, the start of downstream operations and low demand, the apparent consumption of propylene glycol in my country has declined, and the consumption in 2021-2022 is 270,000 tons respectively. and about 310,000 tons. At present, the overall application range of propylene glycol in China is still relatively single. With the continuous advancement of related research, there is still a large room for growth in the application and demand of propylene glycol.
3. Propylene Glycol Price Trend
As far as the price trend of propylene glycol is concerned, since 2020, the price of propylene glycol in my country has been rising due to the overall upstream price of ethylene oxide. The overall cost pressure has continued to increase. Tight, the overall price fluctuated and increased in the first 11 months, driving the operating rate and output to continue to grow. With the dislocation of supply and demand, cost pressures fell, and inventory began to run at a high level. The overall demand for propylene glycol was lower than expected. The price began to accelerate in 2022. By 2022 At the end of the year, the price of propylene glycol has basically fallen back to the level before the increase.
4. Import and export of propylene glycol
As far as the changes in the import and export of propylene glycol in China are concerned, the overall import of propylene glycol in China is stable at about 120,000 tons. In 2022, the overall domestic production capacity will continue to expand and the implementation will drive a substantial increase in production, but the overall domestic demand growth is not as good as the production growth. Under the background of excess supply, domestic export willingness Higher, driving China's propylene glycol export volume to a new high in recent years, exceeding 200,000 tons. In terms of exports, China's overall import volume of propylene glycol is stable at around 60,000 to 80,000 tons. In 2021-2022, affected by the simultaneous growth of domestic overall production capacity and production, the import volume There was a slight decrease, to 69,700 tons and 64,300 tons respectively.
5. Propylene Glycol Export Destinations
As far as my country's propylene glycol export destinations are concerned, my country's propylene glycol is relatively scattered. According to data, my country's propylene glycol will be exported to 135 countries and regions in 2022, mainly concentrated in Asia, Africa and Europe, among which Russia is the largest exporter. In 2022, the export volume Turkey's export volume was 189,800 tons, accounting for 9.4% of the total export volume, India and Indonesia's export volume were 124,200 tons and 114,900 tons, respectively accounting for my country's exports. 6.2% and 5.7%. Propylene Glycol Competitive Landscape
As the largest co-produced propylene glycol manufacturer in China, Shenghua Advanced Materials ranks first in the domestic industry in terms of sales volume, and has a relatively high proportion of international customers and a large export volume. It is the largest exporter of propylene glycol in China. At present, the domestic production capacity of propylene glycol exceeds 100,000 tons. As the overall DMC production capacity and output of Shenghua New Materials continue to expand, the overall revenue continues to expand. In 2022, the total revenue of Shenghua New Materials will be 8.316 billion yuan, of which the revenue of dimethyl carbonate (DMC) series will be 3.936 billion yuan, and the production and sales volume will be 6.71 billion yuan respectively. 10,000 tons and 661,000 tons.
Development Trend of Propylene Glycol Industry
As the price of propylene glycol falls, the overall supply and demand of propylene glycol are gradually stabilizing. Under the background of high export demand and high demand for DMC, the overall production of propylene glycol still has a large room for growth. At present, the domestic production capacity of propylene glycol exceeds 600,000 tons, and the overall production capacity is higher than that in 2021. 43%, and the annual capacity utilization rate is about 66%. It is expected that in 2023, the overall production capacity of propylene glycol in my country will be limited, and the production will start at a low price. The enthusiasm is limited, and it is expected to maintain the level of 2022.