Price trend
According to data from SunSirs’bulk list, the domestic propylene (Shandong) market rose and fell sharply in October. The market was at 8,092 RMB/ton at the beginning of the month, and the average weekend price was 8,392 RMB/ton, a monthly increase of 3.71%.
Analysis review
According to the price chart of SunSirs, the Shandong propylene market staged a sharp rise and fall in October. During the National Day, due to poor transportation and shortage of supply in some areas, the local increase drove the nationwide increase. The highest daily increase was 250-300 RMB/ton, and the average price of propylene rose to around 9,600 RMB/ton. After the holiday, transportation resumed smoothly, low-cost sources of goods flowed in, and propylene prices began to stabilize, and then further callbacks, especially in the last week of October. The downstream demand was weak, and buyers had an obvious boycott of high-priced sources. In order to stabilize the supply, the price had basically dropped to the pre-holiday price.
Upstream crude oil, propane, and liquefied gas all rose to varying degrees, among which liquefied gas rose by 21.06%, propane rose by 15.52%, and crude oil rose by 8.94%. Downstream polypropylene fell significantly. On the one hand, because of insufficient support from the cost of raw material propylene, polypropylene followed the decline; on the other hand, the demand for polypropylene followed up slowly and appeared upside down. In October, polypropylene fell by 4.26%. The overall price of 2-EH increased in October. Also due to the dual impact of falling costs and falling demand, its prices were in a downward channel. In October, 2-EH rose by 9.72%.
Market outlook
The propylene analyst of SunSirs believes that: overall, the cost of propylene increased in October, but the propylene offer continued to fall, and the profit margin of the company was shrinking. It is expected that the price of propylene will increase in November, and pay close attention to the changes in enterprise production and market supply and demand in the future.
