SunSirs: The Propylene Market Slightly Declined This Week (May 8-12)
May 15 2023 11:34:36 SunSirs (John)
Price trend
According to the Commodity Market Analysis System of SunSirs, the domestic propylene (Shandong) market experienced a slight decline this week. The average price in the Shandong market at the beginning of the week was 6,918 RMB/ton, and the average price over the weekend was 6,880 RMB/ton, with a weekly decrease of 0.55% and a year-on-year decrease of 19.53%.
Analysis review
According to the Commodity Market Analysis System of SunSirs, the decline of propylene had slowed down this week. Due to the significant decline last week, downstream demand had improved after the price fell to a low point this week, and they entered the market when the price was low. There were multiple sets of PDH devices upstream with plans to increase load or restart, and the market supply showed an increasing trend. The factory had a clear willingness to destock. Supply and demand had remained relatively stable this week, and the price fluctuations were limited.
The upstream of propylene had fallen across the board, with liquefied gas falling more than 10% in May and crude oil prices falling continuously throughout the week. Cost side and news side were bearish. Downstream construction had improved. Due to the low price of propylene, downstream profits improved and trading was active. However, the main downstream polypropylene market continued to decline, which had a significant negative impact on the propylene market.
Market outlook
Propylene analysts from SunSirs believe that there is an expected increase in propylene supply in the future, but the increase in demand is limited. It is expected that in the short term, propylene prices will mainly decline weakly.
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