SunSirs: The Domestic IPA Market Price Fell in June

Price trend

According to the monitoring of the Commodity Market Analysis System of SunSirs, the domestic market price of IPA continued to decline in June. On June 1st, the average price of IPA was 6,670 RMB/ton, while on June 29th, the average price was 6,460 RMB/ton. During the month, the price decreased by 3.15%.

Analysis review

The domestic market price of IPA continued to decline in June. The IPA market remained light this month, with poor trading conditions and cautious wait-and-see behavior. The upstream acetone market fell, cost support weakened, and the market price of IPA followed suit. As of 29th, the majority of quotations for IPA in the Shandong region were around 6,200-6,400 RMB/ton; The majority of prices for IPA in the Jiangsu region were around 6,700-6,800 RMB/ton.

In terms of raw material acetone, according to the monitoring of the commodity market analysis system of SunSirs, the market price of acetone decreased this month. On June 1st, the average price of acetone was 5,612.5 RMB/ton, while on June 29th, the average price was 5,407.5 RMB/ton. During the month, the price decreased by 3.65%. As of 29th, the focus of the domestic acetone market fell back after rising, and the negotiating focus declined. As the end of the month approached, there was a recent replenishment of imported goods and an increase in port inventory; The profit of the phenol ketone factories increased, and the operating rate is expected to increase in July; In terms of demand, the factory completely followed up just in needed. Although intermediate traders had participated, their inventory willingness was not high, and downstream proactive replenishment was not high. It is expected that the market will adjust weakly in the next few days at the end of the month, with little market volatility.

In terms of raw material propylene, according to the monitoring of the commodity market analysis system of SunSirs, the domestic propylene (Shandong) market price fell first and then rose in June, with a slight increase overall. At the beginning of June, the market average was 6,460.75/ton, with an average price of 6,513.25/ton on June 29th, a monthly increase of 0.81%. Propylene analysts from SunSirs believe that due to the incomplete maintenance of some devices, on-site supply haddecreased. At the same time, during the Dragon Boat Festival, downstream procurement was still good, and the trading atmosphere had improved, and upstream actively pushed up. It is expected that the propylene market will digest the increase in the short term, with limited room for further upward growth.

Market outlook

SunSirs’ IPA analysts believe that the domestic IPA market prices had fallen this month. Upstream acetone market prices remained declining, while propylene (Shandong) market prices had slightly increased, with average cost support. Traders and downstream users had poor purchasing enthusiasm and were cautious in actual orders. Overall, there was insufficient confidence in the IPA market, mainly wait-and-see. It is expected that the IPA market will temporarily stabilize in the short term.

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