SunSirs: The Propylene Market Fluctuated and Fell in October

Price trend

According to the Commodity Market Analysis System of SunSirs, the domestic propylene (Shandong) market fluctuated and fell in October. At the beginning of October, the average market price was 7,270 RMB/ton. On October 27th, the average price was 6,988 RMB/ton, a monthly increase of 3.89%, and a decrease of 2.08% compared to the same period last year.

Analysis review

In the peak season of October, the domestic propylene market fell and fluctuated downwards. After the holiday, international oil prices fell, while the polypropylene market weakened, causing a bearish atmosphere on the news side, suppressing industry confidence and causing a weak decline in propylene prices. In the middle of the month, downstream restocking at low prices, coupled with a strong rebound in crude oil prices, drove a wave of propylene increase. With the rise in prices, downstream polypropylene cost pressure had increased, and there was a strong wait-and-see atmosphere. The price of propylene had been adjusted to make a profit-cutting. The propylene market in October was significantly affected by news and demand, downstream bargained entering the market and the resistance for price increase was significant, leading to an overall decline in the October market.

Cost side: In October, upstream propylene products all experienced varying degrees of decline, and cost side support weakened.

On the demand side: All downstream derivatives of propylene had declined, except for a few varieties that had risen. The weak downstream demand was one of the main reasons for the decline in the propylene market during the peak season.

Market outlook

SunSirs’ Propylene Analysts believe that overall, as of the 27th, the price of propylene had been relatively low, and the enthusiasm for downstream entry at low prices had increased. It is expected that propylene will rise slightly in the short term.

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