Price trend

According to the Commodity Market Analysis System of SunSirs, the domestic propylene (Shandong) market fluctuated and fell in December. At the beginning of December, the market average was 7,105 RMB/ton, with an average price of 6,965 RMB/ton on December 27th, a monthly decrease of 1.97%, and a decrease of 4.74% compared to the same period last year.

Analysis review

In December, domestic propylene fluctuated and fell. Taking the Shandong propylene market as an example, the propylene market experienced a slight decline at the beginning of the month. Due to the weak downstream demand side, the supply-demand contradiction in the propylene market was increasing, and upstream inventory levels were rising. In order to stimulate sales, prices had been lowered and inventory had been discharged. In the middle of the month, international oil prices rose, boosting news and causing a rebound in propylene prices. Subsequently, the northern market was affected by snowfall, which hindered regional transportation and hindered upstream goods flow, resulting in a slight decrease in prices. At the end of the month, the market saw a 100 RMB/ton increase in propylene due to a sudden incident at Qilu Petrochemical, but it quickly fell due to weak demand support.

Cost side: In December, the upstream of propylene experienced a complete decline, with a bearish cost side. Downstream derivatives showed mixed ups and downs, with the main downstream polypropylene slightly rising, but production was not high, suppressing demand for propylene.

Market outlook

The propylene analyst from SunSirs believes that the demand in the propylene market was still weak, with a strong willingness to sell upstream and cautious entry into the market downstream. It is expected that the market will consolidate in a narrow range in the short term.

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