Price trend

According to the monitoring of the Commodity Market Analysis System of SunSirs, the IPA market fell this week. At the beginning of the week, the average price of IPA in China was 6,630 RMB/ton, while the average price over the weekend was 6,460 RMB/ton. During the week, the price decreased by 2.56%.

Analysis review

The market price of IPA continued to decline this week. As of June 9th, the market situation remained calm and trading sentiment was poor. The upstream acetone market price had fallen, and cost support was weaker. Downstream procurement was cautious, with on-demand orders being the main focus. Most businesses maintained a wait-and-see attitude, with fewer inquiries and more wait-and-see, resulting in slow shipments. As of June 9, the majority of quotations for IPA in the Shandong region were around 6,100-6,400 RMB/ton; The majority of prices for IPA in the Jiangsu and Zhejiang regions were around 6,600-6,800 RMB/ton.

In terms of raw material acetone, the market price of acetone was lowered this week. At the beginning of the week, the average price of acetone was 5,270 RMB/ton, while on Friday, the average price was 5,237.5 RMB/ton. The price was reduced by 0.62%. This week, there was a serious lack of follow-up on the demand side of the market, with very few customers actively entering the market for procurement. Holders were under pressure and had a high intention to sell out at a discount. Major mainstream market quotations continued to decline, and factories had to lower their listing prices multiple times in an inverted situation. Downstream factories were mainly wait-and-see, which hindered their procurement pace.

In terms of propylene, according to the commodity market analysis system of SunSirs, the propylene market in Shandong was fluctuating and rising this week, but the rise was weak. At the beginning of the week, due to the widening price difference between downstream PP and propylene, there was a certain profit margin in the downstream, and procurement was more active. Propylene enterprises took advantage of the trend and drove up. In the second half of the week, due to the impact of low-priced sources from the surrounding areas, coupled with the decline in crude oil prices, the mentality of the industry was dragged down. Propylene prices stopped rising and retreated, while the wait-and-see atmosphere on the market became stronger, suppressing price increases.

Market outlook

SunSirs’ IPA analysts believe that the price of raw acetone decreased, while the propylene market fluctuated and rose, but the increase was weak, the overall cost support was weak, downstream demand was still weak, and overall market confidence was insufficient. Most businesses were cautious and wait-and-see, purchasing according to demand. It is expected that the IPA market will be consolidated weaker in the short term.

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