Price trend
According to data from SunSirs’bulk list, the domestic propylene (Shandong) market price in August first declined and then rose. The market was at 7,824 RMB/ton at the beginning of the month, and the average price at the end of the month was 7,782 RMB/ton, a 0.55% monthly decline.
Analysis review
According to the monitoring data of SunSirs, in early August, due to the sharp decline in crude oil prices, the propylene prices were downward under pressure, the market had a strong bearish attitude, the downstream demand situation was acceptable, but the cost bearish influence was strong, and the support from demand was weak. Propylene prices rebounded slightly in mid-August, and international crude oil rebounded, which boosted costs. At the same time, some factories were shut down for maintenance and supply decreased. The market started to rise slightly in late August, but the upward momentum was insufficient. The inventory of enterprises was fair, the delivery of goods was stable, and the prices were mostly stable.
Taken together, the upstream crude oil fell by 6.63% month-on-month due to multiple factors. Among the downstream products of propylene, more of them rose and less of them declined. Among them, isopropanol rose by 19.27% and acetone rose by 26.11%. The support of downstream demand boosted propylene market.
Market outlook
The propylene analyst of SunSirs believes that the propylene market is expected to usher in a wave of price increases in the traditional peak season of chemical market demand in September.
