Price Trend

According to the data of business associations, the market price of propylene (Shandong) in China has been declining in a straight line in recent days, with the average price of propylene (Shandong) at the beginning of the week being 7,875 yuan/ton, while the average price of propylene (Shandong) on Friday was 7,525 yuan/ton, with a weekly decline of 4.45%, 5.69% compared with last weekend (August 3).

II. Analytical Review

Products: The price of propylene enterprises in Shandong Province maintained stable in early August, and began to fall continuously on the 5th day. It dropped 450-500 yuan/ton on the 8th day. Today, it is stable as a whole. At present, the market turnover is around 7480-7650 yuan/ton, the mainstream price is about 7500 yuan/ton, and the low-end price has been revised back. The supply of refineries has increased, the inventory is moderately high, and there is a certain pressure on shipment.

Industry chain: Upstream, affected by the international situation, the international crude oil declined significantly in the first few days of this week, and the crude oil recovered significantly on Thursday. If we can maintain the upward trend, or have some support for propylene. Downstream, due to the sharp drop in propylene prices, downstream PP powder, butyl octanol and acrylic acid and other profits have increased, the start-up rate is still acceptable. This week, polypropylene futures prices are not ideal, spot prices have also declined, which has no positive effect on propylene for the time being; acrylic acid prices are flat all the way, which has little impact on propylene; while propylene oxide plant plant has a good negative effect, resulting in a rise in mid-week prices, which has a partial positive impact on propylene; and the epichlorohydrin market declined early in the week. Nearly 5% has a negative impact on propylene, while butyl octanol unit has decreased its negative impact and the market has increased slightly since last weekend, which has a slightly positive impact on propylene market.

3. Future Market Forecast

Propylene analyst of Business Society Chemical Branch believes that: overall, the recent international crude oil market is unstable, the weekend rebound, big changes, PP spot market is not ideal, downstream profit margin has improved, start-up rate is good, but refinery inventory is slightly higher, shipment pressure is still large, propylene prices are expected to rebound in the near future or a small amount. Between.