Price trend

According to the monitoring data of SunSirs, the domestic propylene (Shandong) market in December fell in shock. The peak season was not strong and the slack season was even weaker. At the beginning of December, the market was at 7,690 RMB/ton. The average price on December 30 was 7,244 RMB/ton, with a monthly decline of 5.8%, and down 4.03% compared with the same period last year.

Analysis review

The propylene market opened smoothly in December, continuing the rising market at the end of November, with the price rising to a stage high, mainly for downstream digestion and consolidation. Subsequently, due to the rising cost, the profit of downstream polypropylene and other products was tightened, the commencement of work was reduced, and the procurement was restrained. In order to stabilize the delivery of propylene, the prices of propylene enterprises decreased successively. In the middle of the month, the price of propylene fell to a low level, and the downstream bought on bargain. The supply of low price goods was smooth, and the price rose a small peak. In the late ten days, due to the impact of domestic public security incidents, transportation and manpower were affected, and the offer of propylene continued to fall.

In December, the propylene industry chain declined mainly, especially in the cost side, with naphtha and propane dropping by nearly 10%. The propylene cost line moved downward, and the support was insufficient. Downstream derivative products were mixed. The main downstream polypropylene was constrained by high cost and low demand, and the operating rate of the industry was not high, resulting in a certain degree of inhibition of propylene demand.

Market outlook

According to the propylene analysts of SunSirs, the rapid expansion of the propylene industry led to the imbalance between supply and demand, and the market decline in 2022 ended. The transportation and demand will be affected by traditional festivals in January. It is expected that the propylene market will operate in a weak and volatile way in January, with the price range between 7,100-7,300 RMB/ton.

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