SunSirs: Propylene Fluctuated and Fell in March, and Rebounded at the End of the Month

Price trend

According to the monitoring data of SunSirs, the domestic propylene (Shandong) market fluctuated and fell in March, and the market rebounded at the end of the month. At the beginning of March, the market was at 7,522 RMB/ton, and on March 29, the average price was 7,096 RMB/ton, with a monthly decrease of 5.66%, and down 16.52% compared to the same period last year.

Analysis review

In March, the overall performance of the propylene market was weak, with small gains and small losses dominating. At the beginning of March, the trading in the market was general, the inventory of manufacturers was controllable, and individual enterprises sold their products at a reduced price, resulting in a narrow decline in propylene prices. In mid to late March, downstream procurement was cautious and bargained into the market. The demand for propylene at low prices was increasing, and the upstream was tentatively pushing up. However, due to the impact of lowered and shocked oil price, the industry was more bearish, constraining the propylene market, leading to a volatile decline in the propylene market throughout the month. As the end of the month approached, oil prices rebounded, at the same time, propylene prices were adjusted to a low level, the propylene price stopped falling and rebounded. As of March 29, the mainstream price in the Shandong propylene market was 7,070-7,100 RMB/ton.

Cost side: In March, the price of upstream propylene products fell significantly, especially the prices of propane and liquefied gas. Oil prices decreased in shock, the weak cost side had a significant negative impact on propylene. Demand side: downstream derivatives of propylene, with the majority falling and the least rising. The main downstream polypropylene was generally weak, while other downstream products performed commonly, and the demand side maintained just in demand.

Market outlook

Propylene analysts from SunSirs believe that the propylene market rebounded at the end of the month, with a slight boost in confidence on the market. The propylene factory shipped smoothly at low prices and effectively eliminated inventory. It is expected that the propylene market will continue to rise in a narrow range in April.

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