Price trend

According to the monitoring data of SunSirs, the domestic propylene (Shandong) market rose in a stepwise manner in January and showed signs of decline at the end of the month. At the beginning of January, the market was at 7,244 RMB/ton, and the average price on January 30 was 7,640 RMB/ton, with a monthly increase of 5.47%, and down 1.42% from the same period last year.

Analysis review

The propylene market rose steadily in January. From the beginning of the month, the propylene market gradually entered the stage of pre-holiday stock preparation. There was a wave of purchase peaks in the downstream, and the transaction atmosphere improved. The upstream shipment was smooth, the inventory was effectively removed, and the price was tentatively pushed up. At the same time, cost support increased, further boosting market prices. During the Spring Festival, the market maintained a stable trend, the market demand followed up slowly after the festival, and the quotations of individual enterprises fell.

In January, the propylene industry chain rose significantly, with the overall cost rising, with propane rising by 26%, naphtha and liquefied gas rising by more than 15%. The high cost formed a strong support for the propane market. Except for some products, downstream derivatives were mainly rising. Under the linkage of rising cost, the price of propylene downstream products was rising.

Market outlook

Propylene analysts from SunSirs believe that the current demand and transportation capacity of propylene market are gradually recovering, and under the pressure of cost, the downstream wait-and-see atmosphere is strong, and the propylene offer shows signs of loosening. It is expected that the propylene market will be volatile to be weaker and in February.

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