1、 Price trend

According to the bulk list data of SunSirs, the domestic propylene (Shandong) market experienced twists and turns in April, and the overall market rose. The market was 8200 RMB/ton at the beginning of the month, and the average price at the end of the month was 8404 RMB/ton, with a monthly increase of 2.49%.

2、 Analysis and comment

According to the price chart of SunSirs, compared with March, the trend of propylene processing in April was relatively stable, with the highest price of 8494 RMB/ton in the month, an increase of 3.58% over 8200 RMB/ton at the beginning of the month. In April, propylene market fluctuated mainly in a narrow range. On the one hand, the high cost has become the main support for the rise of propylene. On the other hand, the domestic epidemic broke out at many points, the transportation was not smooth, the downstream production and shutdown, and the reduced demand had a significant negative impact on propylene.

In the upstream, except for liquefied gas, the market of methanol, naphtha and propane fell to varying degrees in April, but on the whole, the raw material cost of propylene is still high, resulting in poor profits in the propylene industry, especially the large-scale expansion of production capacity of PDH route in recent years, reduced profits or even losses, and further reduced the operating rate of PDH.

Downstream products fell. The market of polypropylene in April was mainly supported by the cost side. The market needs to be improved, dragged down by the demand side, and there is great resistance to the rise of propylene.

3、 Future forecast

Propylene analysts from the chemical branch of SunSirs believe that: entering the increasing trend of propylene supply in May, some shutdown enterprises resume production, and some downstream products expand synchronously, which is expected to alleviate the pressure of propylene supply. There is a game between cost and supply and demand. It is expected that the propylene market will fluctuate mainly in a narrow range.

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