Price trend

According to the Commodity Market Analysis System of SunSirs, the domestic propylene (Shandong) market fell first and then rose in June, with a slight increase overall. At the beginning of June, the average market price was 6,460 RMB/ton. On June 29th, the average price was 6,513 RMB/ton, with a monthly increase of 0.43%, and a decrease of 15.96% compared to the same period last year.

Analysis review

In early June, the propylene market fluctuated and fell. Downstream buying gas was poor, and the price of propylene gradually fell to a low point. Downstream bargains entered the market, and the effect of enterprise destocking was significant. In late June, with the decline of propylene prices and a widening price gap with downstream PP, there was profit potential in the downstream, and procurement was relatively active. At the same time, some propylene enterprises underwent temporary maintenance, resulting in a temporary decrease in market supply and a push up model for propylene. At the end of the month, the trading center of propylene showed a downward trend. On the 29th, the price of propylene in Shandong was decreased by 50 RMB/ton, with mainstream quotations ranging from 6,400 to 6,450 RMB/ton.

Cost side: In June, upstream products of propylene showed mixed ups and downs, with propane and liquefied gas experiencing significant declines, crude oil fluctuating downward, and bearish costs and news dragged down the propylene market. 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 remained rigid.

Market outlook

SunSirs’ Propylene Analysts believe that as of 29th, the propylene market had controllable inventory and demand changes were limited, and it is expected to maintain a narrow consolidation operation in the near future.

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