SunSirs: The Shandong Propylene Market Went Down at the Weekend of This Week (March 1-5)

Price trend

According to data from SunSirs’ bulk list, the domestic propylene (Shandong) market remained stable at the beginning of the week and declined at the weekend. At the beginning of the week, the price was high at 8,544 RMB/ton, and it was the low price at 8,373 RMB/ton at the weekend, with a weekly decline of 2.00%.

Analysis review

According to the price chart of SunSirs, affected by the upstream and downstream, the price of propylene rose repeatedly in the second half of February and was at a multi-year high. At the end of February and early March, the price was generally stable. The price fell on the 4th, and the price continued to decline significantly on the 5th, down 100~ 200 RMB/ton. As of the 5th, market transactions were between 8,200-8,600 RMB/ton, and the mainstream price was 8,200-8,300 RMB/ton. The impact of low temperatures in the United States still exists, and production capacity is generally restored; the impact of propylene in Japan has decreased, and production capacity has recovered slightly.

According to reports, OPEC+ may extend production cuts. Crude oil prices rose sharply on March 4, which supported the cost of propylene to a certain extent.

PP prices rebounded and stabilized after falling this week, with a weekly decline of 0.35% and a weekly amplitude of 1.06%. The futures market was average, and the impact on propylene was limited.

Acrylic acid prices continued to rise this week, with a weekly increase of 3.85%, which had a certain positive impact on propylene.

The propylene oxide market rose slightly in the second half of the week, with a weekly increase of 0.71%, which had little effect on propylene.

This week, the ECH market rose significantly at the beginning of the week and then stabilized, with a weekly increase of 3.54%, which had a certain effect on propylene.

The domestic price of n-butanol plummeted this week, with a weekly decline of 5.29%, which had a relatively obvious suppressive effect on the propylene market.

This week, the 2-EH trend declined over the weekend, with a weekly decline of 3.52% and with a weekly amplitude of 3.92%, which had a certain degree of negative impact on propylene.

The price of IPA declined slightly this week, with a weekly decline of 0.69%, which had a slight negative impact on propylene.

The East China phenol market stabilized after its upward trend this week, with a weekly increase of 1.16%, which had a slight positive impact on propylene.

The quotations of manufacturers in the East China acetone market had all remained stable this week, which had little impact on propylene.

Market outlook

The propylene analyst of SunSirs believes: On the whole, international production has recovered slightly, domestic inventories are not large, crude oil prices have risen sharply, downstream operating rates are acceptable, and the effect of pulling up is not obvious, and propylene has recently reached a high level. Therefore, it is expected that the market outlook for propylene may stop falling and rebound.

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