Price trend

According to the commodity analysis system of SunSirs, the market price of 2-EH in Shandong Province rose sharply this week. This week, the average price of 2-EH in the mainstream market in Shandong region increased from 9,100.00 RMB/ton at the beginning of the week to 10,071.43 RMB/ton at the weekend, an increase of 10.68%. Weekend prices fell by 22.92% year-on-year.

On May 7th, the 2-EH commodity index was 74.05 points, unchanged from the previous day, a decrease of 46.15% from the cycle's highest point of 137.50 points (2021-08-08), and an increase of 110.67% from the lowest point of 35.15 points on February 1st, 2016. (Note: The cycle refers to the period from September 1st, 2011 to the present)

Insufficient upstream support and increased downstream demand

From the supply side, the market quotation of Shandong's mainstream 2-EH manufacturers rose this week: The market price of Lihuayi’s 2-EH at the weekend was 10,400 RMB/ton, which was 1,200 RMB/ton higher than that at the beginning of the week; The weekend market price of Hualu Hengsheng’s 2-EH was 10,800 RMB/ton, which was 1,600 RMB/ton higher than that at the beginning of the week; The market price of 2-EH of Luxi Chemical at the weekend was 10,800 RMB/ton, which was 1,800 RMB/ton higher than that at the beginning of the week.

From the upstream raw material market of 2-EH, the propylene market slightly declined this week, with prices dropping from 7,052.60 RMB/ton at the beginning of the week to 6,962.60 RMB/ton at the weekend, a decrease of 1.28%. Weekend prices fell by 20.89% year-on-year. The price of upstream raw material market fell slightly, and the cost support was insufficient. Affected by the supply and demand side, the price of 2-EH was negatively affected.

From the downstream market situation of 2-EH, the factory price of DOP significantly increased this week. The price of DOP increased from 9,709.17 RMB/ton at the beginning of the week to 10750.00 RMB/ton at the weekend, an increase of 10.72%. Weekend prices fell by 11.16% year-on-year. Downstream DOP prices significantly increased, and downstream customers were actively increasing their purchases of 2-EH.

Market outlook

In mid to early May, the Shandong 2-EH market may experience slight fluctuations and gains. The upstream propylene market slightly declined, with insufficient cost support. The downstream DOP market significantly increased, downstream demand increased. Some manufacturers had shut down for maintenance, resulting in a tight supply of 2-EH. SunSirs 2-EH analysts believe that in the short term, the domestic 2-EH market may experience slight fluctuations and increases due to various factors such as supply and demand and raw materials.

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