SunSirs: The Propylene Market Stopped Falling and Rose in January
January 29 2024 11:41:09 SunSirs (John)
Price trend
According to the commodity market analysis system of SunSirs, the domestic propylene (Shandong) market stopped falling and rebounded in January. At the beginning of January, the market average was 6,868 RMB/ton. On January 26th, the average price was 6,980 RMB/ton, with a monthly increase of 1.64%, and a decrease of 7.67% compared to the same period last year.
Analysis review
In January, the domestic propylene market stopped falling and rose. At the beginning of the month, propylene inventories were high, and in order to stimulate sales, prices were lowered and inventory was released. Effectively stimulating downstream procurement efforts, propylene took advantage of the situation to drive up prices. In the middle of the month, some propylene units experienced a decrease in production due to inverted profits, resulting in a tightening of the supply side and a stable demand side. As a result, propylene continued to rise. Propylene rose to a high level, leading to a narrowing of the price difference with downstream polypropylene and suppressing downstream demand, resulting in a slight correction at the end of the month.
Cost side: In January, the upstream of propylene showed mixed ups and downs, with average cost support. Downstream derivatives showed mixed ups and downs, and the main downstream polypropylene slightly increased, but production was not high, suppressing demand for propylene.
Market outlook
The propylene analyst from SunSirs believes that the wait-and-see atmosphere in the propylene market was becoming stronger, and downstream entry into the market was cautious. It is expected that the price center in the short term will be unstable and there is a possibility of a downward trend.
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