SunSirs: The Propylene Market Fluctuated and Rose in July

Price trend

According to the Commodity Market Analysis System of SunSirs, the domestic propylene (Shandong) market fluctuated in July, with a slight increase overall. At the beginning of July, the market average was 6,518 RMB/ton, and on July 28th, the average price was 6,675 RMB/ton, a monthly increase of 2.42%, and a decrease of 7.72% compared to the same period last year.

Analysis review

In July, the Shandong propylene market experienced a volatile and strong operation. At the beginning of the month, some units in the Shandong propylene market underwent maintenance, leading to a tightening of supply in the region and a positive increase in prices. Subsequently, the downstream showed a resistance towards the high prices after the rise, and the continued upward momentum was insufficient. On the contrary, in order to stimulate shipment, the prices shifted from rising to falling, and the focus of transactions shifted downwards. In mid to late July, international oil prices continued to fluctuate and rise, boosting market sentiment. Downstream investors actively entered the market, and the trading atmosphere on the market improved, leading to a stronger rise in propylene prices.

Cost side: In July, the upstream of propylene showed varying degrees of increase, which effectively boosted the propylene market with enhanced cost support. On the demand side: downstream derivatives of propylene, except for propylene oxide, had shown varying degrees of increase, with some products experiencing an increase of over 10%. Downstream products were supported by raw material costs, and the market was showing a trend of improvement.

Market outlook

SunSirs’ propylene Analysts believe that although there was a trend of weakening trading atmosphere in the propylene market, the cost side support was strong, and it is expected that the propylene market will maintain a stronger upward trend in the short term.

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