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SunSirs: Propylene Rebounded in Three Days at the End of the Month After Falling Twice Nearly 10% in December

January 02 2020 11:07:00     SunSirs (John)

Price trend

According to the data of SunSirs, the propylene market stabilized after a sharp fall in the first ten days of December, and then it fell again in the second ten days of the month, and rebounded at the end of the month. At the beginning of the month, the average price of the enterprise is the monthly high price, at 7,095 RMB/ton; at the end of the month, the average price of the enterprise is 6,654 RMB/ton, with a monthly drop of 6.22%; the monthly low price appears on December 28, which is also the annual low price, at 6,510 RMB/ton, with a monthly amplitude of 8.25%.

 

Analysis review        

Product: At the beginning of December, affected by the international crude oil market "Black Friday", the price of propylene began to decline, and the price fell all the way, about 400 RMB/ton; After that, the price remained stable and fluctuated in a narrow range; At the end of the month, the price of the enterprise began to decline again from December 25, falling about 200 RMB/ton in two days; propylene started to pick up on weekends. Today, the price of enterprises has risen by 50 ~ 100 RMB/ton. The current market turnover is about 6,600 ~ 7,100 RMB/ton, and the mainstream price is about 6,600 RMB/ton.

Industrial chain: On the upstream side, the news of OPEC's extended output reduction policy has affected the international crude oil market's high level consolidation, but the increase is not large, which has a certain effect on propylene. On the downstream side, downstream manufacturers have gradually resumed operations, shipping conditions have improved, and profit margins are still acceptable, which will also have a certain positive impact on propylene.

In December, the PP spot shock fluctuated, with a monthly drop of 6.56%, and the fundamentals were entangled in short and long positions. From the perspective of the results, the market was weak and fluctuated, which had limited impact on propylene.

In December, the local supply of acrylic acid was tight, and the manufacturers' price intention was obvious, with a monthly increase of 3.39%. It is expected that the short-term acrylic acid market may be based on a strong and stable operation, which will have a positive impact on propylene.

The trend of propylene oxide fluctuated widely in December, with a monthly drop of only 0.98% and a monthly amplitude of 5.96%. The market outlook may still decline, which has a negative impact on propylene.

Epichlorohydrin started to pick up in the middle of the month after a slight decline in December. At the end of the month, it stabilized at a high level, with a monthly increase of 10.39% and a monthly amplitude of 19.72%, which had a certain effect on the price of propylene.

The market price of n-butanol declined in December, with a monthly decline of 7.16%. At the end of the month, there was a significant downward trend, which may have some negative effects on propylene.

The market for octanol in December was almost stable, with a monthly drop of 0.48%, which had a small impact on propylene.

In December, the phenol market in Shandong was generally stable, with a monthly decline of 0.51% and an amplitude of 1.04%, which had limited impact on the propylene market.

In December, the Shandong acetone market fell sharply in the middle of the month, with a monthly drop of 7.55%, which had a negative effect on propylene.

In December, due to the impact of the upstream acetone market, the isopropanol market also declined, but it rebounded at the end of the month, with a monthly decline of 10.96% and a monthly amplitude of 13.70%. It also had a slight negative effect on propylene.

 

Market outlook

The Propylene Analyst of SunSirs believes that, overall, the propylene market plummeted twice in December, with a total decline of nearly 10%.The upstream crude oil market is consolidating at a high level; the downstream operating rate is good, and the profit margin is acceptable, so Shandong propylene prices are expected to continue to rise in the short term.

 

If you have any questions, please feel free to contact SunSirs with marketing@sunsirs.com.

 

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