Price Trend

According to the data from the business associations’list, the domestic propylene (Shandong) market has been declining continuously in recent days. The average price of enterprises on Friday (August 16) was 7741 yuan/ton. Today (August 19) it has dropped to 7435 yuan/ton. The four-day decline has again reached 3.95%. This is the second half-week dive in propylene market since August, exceeding 3%.

II. Analytical Review

Products: The price of propylene enterprises in Shandong Province maintained stable in early August, declined continuously from 5 days to 8 days, declined 450-500 yuan/ton, rebounded on 10 days, rose 200 yuan/ton on 14 days, stabilized on 15 days, declined sharply on 17 days, and went 300 yuan/ton on three days. At present, the market turnover is about 7400-7650 yuan/ton. The mainstream price is about 7400 yuan/ton. Affected by typhoon recently, loading of some upstream and downstream enterprises in Shandong Province was blocked last week and the turnover was low. Now most of them have returned to normal, and the volume of propylene shipments has increased. Propylene supply in Shandong is abundant due to the continuous supply of Northeast China’s large factories.

Industry chain: In the upstream, international crude oil rose sharply last week and then fell sharply. Although there was a slight recovery in the later period, market expectations were not satisfactory, which had a negative impact on propylene. On the downstream side, the recent polypropylene futures market is relatively depressed, which has little impact on propylene. Recent sharp fall in propylene prices has made downstream factories more cautious in purchasing, mainly in need, and refinery shipment pressure continues to rise, which has warmed up the mood of profit and expenditure.

3. Future Market Forecast

Propylene analysts from the Business Society Chemical Branch believe that in general, international crude oil is not ideal in the near future. Spot prices in PP period are relatively cold. Loading of enterprises has resumed and shipments have increased. The supply of Northeast China’s large factories has made Shandong’s propylene supply more abundant. Prices have fallen sharply, and downstream purchases are just needed. Propylene prices are expected to continue to fall in the near future.