Price trend

According to the monitoring of the Commodity Market Analysis System of SunSirs, the market price of IPA increased in the first half of July. At the beginning of the month, the average price of IPA in China was 6,440 RMB/ton. On July 14th, the average price was 6,850 RMB/ton, and within half a month, the price increased by 6.37%.

Analysis review

The market price of IPA increased in the first half of July. As of July 14, the market situation for IPA was good, especially in terms of exports. Upstream acetone market prices had risen, with strong cost support. Downstream inquiries were relatively active, and procurement was on demand. Overall, the market trading was relatively active. As of 14th, the majority of quotations for IPA in the Shandong region were around 6,100-6,500 RMB/ton; The majority of prices for IPA in the Jiangsu and Zhejiang regions were around 7,100-7,500 RMB/ton.

In terms of raw acetone, the upstream acetone market price increased in the first half of July. At the beginning of July, the average price of acetone was 5,432.5 RMB/ton, and on July 14th, the average price was 5,700 RMB/ton. Within half a month, the price increased by 4.92%. As of July 14, the upward sentiment of acetone holders was not decreasing, and the market's trading focus was on the rise. Downstream chasing upward sentiment was cautious, and purchasing intentions were insufficient. Most of them were in demand, and trading volume needed to be improved. It is expected that the price of acetone will be stronger in the short term.

In terms of propylene, according to the Commodity Market Analysis System of SunSirs, the upstream propylene market prices first rose and then fell in the first half of July. Overall, the market declined. The average price in the Shandong market at the beginning of the month was 6,518.25 RMB/ton, and on July 14th, the average price was 6,370.75 RMB/ton, a decrease of 2.26% within half a month. Propylene analysts from SunSirs believe that due to the high prices in the early stage, the downstream transaction atmosphere had weakened, leading to a decrease in upstream sales. In order to stimulate sales, the price of propylene was significantly reduced, downstream purchasing willingness had increased, and trading volume had increased. However, the market lacked effective positive signal stimulation, and it is expected that the propylene market will mainly operate in a weak manner in the short term.

Market outlook

SunSirs’ IPA analysts believe that the rising price of raw acetone and overall cost support were driving up the market price of IPA. In addition, with good export performance and improved domestic demand, the overall market trading was relatively active. It is expected that the IPA market will be mainly stronger in the short term.

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