Price trend

According to the data monitoring of SunSirs, the domestic propylene (Shandong) market rose many times this week, and the market trading atmosphere improved. The average price of Shandong market at the beginning of the week was 7,436 RMB/ton, and the average price at the weekend was 7,710 RMB/ton, with a weekly increase of 3.68%, up 10.08% from 30 days ago.

Analysis review

According to the monitoring of SunSirs, the propylene market performed well this week, and the price rose to a stage high. Due to the low price in the early stage, the effect of enterprise destocking was obvious, and the restart time of PDH in the market was delayed, leading to the tight supply of propylene in Shandong. With the steady follow-up of demand, the price of propylene was raised many times. As of this Friday, the price of propylene in Shandong had risen to a high level. With the inflow of low-end goods from the surrounding areas, the resistance to rising increased. The offer of some enterprises was slightly increased by 50 RMB/ton, and the mainstream offer of Shandong was 7,650-7,700 RMB/ton.

Upstream: On the news side, crude oil prices stopped falling and rose this week. As of the closing of December 1, WTI rose 0.67 to 81.22 US dollars/barrel in January 2023, up 0.8%; In February 2023, Brent fell 0.09 to 86.88 per barrel, down 0.1%. Crude oil is still expected to rise next week, supported by positive cost.

Downstream: The market of some downstream products declined mainly, but the commencement of some products was fair, and the demand for propylene was stable. Due to the rise of propylene price, the profit space of the polypropylene industry had shrunk, some enterprises had plans to reduce the burden, and other downstream derivatives have relatively stable demand.

Market outlook

According to the propylene analyst from SunSirs, the cost support is good, but the price rise inhibits downstream demand. Under the long short game, it is expected that the probability of Shandong propylene market declining next week will increase.

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