Price trend

According to the Commodity Market Analysis System of SunSirs, the domestic propylene (Shandong) market stabilized first and then fell in May. At the beginning of May, the market was average at 7,052 RMB/ton, and on May 31, the average price was 6,490 RMB/ton, a monthly decrease of 7.97%, and a decrease of 15.54% compared to the same period last year.

Analysis review

In May, the propylene market remained stable and declining. At the beginning of the month, during the May Day, the construction of downstream devices was low, the procurement volume period was limited, the export pressure of propylene enterprises increased, and profits were given up for sales. In addition, the recent weakness of crude oil and the downward trend of the polypropylene market, the price of propylene started to decline under the pressure of multiple bearish factors. Subsequently, the price fell to a low level, downstream prices entered the market at a low level, upstream shipments slightly improved, and the decline in propylene prices slowed down. In late May, upstream factories continued to reduce prices and destock to stimulate sales, but demand growth was limited, downstream procurement was cautious and there was a strong wait-and-see atmosphere, the weak market continued until the end of the month.

Cost side: In May, upstream propylene products collectively experienced varying degrees of decline, with a significant negative impact on the cost side. On the demand side: downstream derivatives of propylene had seen more declines and less gains, while the main downstream polypropylene was generally weak. Other downstream products performed average, and the demand side maintained just in needed.

Market outlook

Propylene analysts from SunSirs believe that the price of propylene had dropped to a low level, and under demand leadership, it is expected that propylene prices will be weak in the short term.

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