SunSir: Shandong 2-EH Prices Fell by 0.70% This Week (July 3-9)

Price trend

According to the Commodity Analysis System of SunSirs, the price of 2-EH in the Shandong region decreased slightly this week. This week, the average price of 2-EH in the mainstream market of Shandong region dropped from 9,550.00 RMB/ton at the beginning of the week to 9,483.33 RMB/ton at the weekend, a decrease of 0.70%. The weekend prices increased by 9.42% year-on-year.

On July 10th, the 2-EH commodity index was 69.98 points, an increase of 0.25 points from the previous day, a decrease of 49.11% from the highest point of 137.50 points in the cycle (2021-08-08), and a rise of 99.09% from the lowest point of 35.15 points on February 1st, 2016. (Note: The cycle refers to the period from September 1st, 2011 to the present)

Upstream support was insufficient and downstream demand weakened

From the supply side perspective, the prices of mainstream manufacturers of 2-EH in Shandong slightly decreased this week, with average inventory: Lihuayi’s 2-EH had a factory price of 9,600 RMB/ton over the weekend, which was temporarily stable compared to the beginning of the week; The factory price of Hualu Hengsheng’s 2-EH for the weekend was 9,800 RMB/ton, which was temporarily stable compared to the beginning of the week; The weekend market price of 2-EH in Luxi Chemical was 9,500 RMB/ton, and compared to the beginning of the week, the quotation decreased by 100 RMB/ton.

From the upstream raw material market of 2-EH, the propylene market had slightly declined this week, with prices dropping from 6,683.25 RMB/ton at the beginning of the week to 6,563.25 RMB/ton at the weekend, a decrease of 1.80%. Weekend prices fell by 12.03% year-on-year. The upstream raw material market prices had slightly declined, with insufficient cost support. Due to the impact of supply and demand, it had a negative impact on the price of 2-EH.

From the downstream market of 2-EH, the DOP market price had slightly decreased this week. The price of DOP was decreased by 0.09% from 9,776.67 RMB/ton at the beginning of the week to 9,767.50 RMB/ton at the end of the week. Weekend prices were increased by 4.19% year-on-year. Downstream DOP prices had slightly declined, and downstream customers were less proactive in purchasing 2-EH.

Market outlook

In mid to late July, the Shandong 2-EH market may experience slight fluctuations and declines. The upstream propylene market has slightly declined, with insufficient cost support. The downstream DOP market has slightly declined, and downstream demand is weak. SunSirs 2-EH analysts believe that in the short term, the domestic 2-EH market may experience minor fluctuations and declines due to various factors such as supply and demand and raw materials.

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