SunSirs: The Market Price of IPA Rose This Week (September 4-8)

Price trend

According to the monitoring of the Commodity Market Analysis System of SunSirs, the market price of IPA had increased this week. At the beginning of the week, the average price of IPA in China was 7,790 RMB/ton, while the average price over the weekend was 8,080 RMB/ton. During the week, the price increased by 3.72%.

Analysis review

The market price of IPA had increased this week. As of September 8th, the market situation was relatively good. The rapid rise in upstream acetone market prices had driven up the price of IPA. Downstream inquiries were relatively active, and procurement was on demand. Holders followed the market, and overall, the focus of market transactions was upward. As of September 8th, the majority of quotations for IPA in the Shandong region were around 7,800-8,000 RMB/ton; The majority of prices for IPA in the Jiangsu and Zhejiang regions were around 8,400-8,700 RMB/ton.

In terms of raw acetone, the upstream acetone market price had rapidly increased this week. At the beginning of the week, the average price of acetone was 6,912.5 RMB/ton, while at the weekend, the average price was 7,157.5 RMB/ton, with an increase of 3.54%. Factories raised their listing prices in a concentrated manner, and the focus of market trading was on the rise. Downstream were cautious in pursuing upward trends, mainly on demand. It is expected that the price of acetone will be stronger in the short term.

In terms of propylene, according to the Commodity Market Analysis System of SunSirs, the domestic propylene (Shandong) market price fell this week, with an average price of 7,338.25 RMB/ton at the beginning of the week and 7,133.25 RMB/ton on Sunday, a weekly decrease of 3.07%. Propylene analysts from SunSirs believe that the propylene market was further declining, the shipment of upstream was not smooth and inventory accumulated, and the transaction focus continued to shift downward. International oil prices had risen, but support for propylene was limited, and the market had a strong wait-and-see atmosphere. It is expected that the propylene market will continue to operate weakly in the short term.

Market outlook

SunSirs’ IPA analysts believe that the rapid rise in the market price of raw acetone had boosted confidence in the IPA market. On site positive support was mainly based on cost factors, supplemented by supply. Downstream wait-and-see sentiment worsened, operation was cautious, and mainly on-demand. It is expected that the IPA market will be mainly stronger in the short term.

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