Price trend

According to the monitoring of the Commodity Market Analysis System of SunSirs, the market price of IPA fluctuated and increased this week. At the beginning of the week, the average price of IPA in China was 9,260 RMB/ton, while the average price over the weekend was 9,300 RMB/ton. During the week, the price increased by 0.43%.

Analysis review

The market price of IPA fluctuated and rose this week. As of September 22, foreign trade orders were relatively good, while the domestic trade market was weak. Petrochemical companies in the upstream acetone sector had significantly lowered their listing prices, weakening support. Market confidence was insufficient, downstream inquiries were frequent, but actual transactions were few, and procurement was cautious. As of September 22, the majority of quotations for IPA in the Shandong region were around 9,000-9,300 RMB/ton; The majority of prices for IPA in the Jiangsu and Zhejiang regions were around 9,450-9,600 RMB/ton.

In terms of raw material acetone, petrochemical companies had significantly lowered their listing prices this week, with a decrease of around 400 RMB/ton. Although terminal factories have tendered for replenishment, the prices had remained low. Among them, Yangzhou Shiyou lowered the price by 650 RMB/ton to execute 7,000 RMB/ton, while Sinopec Yanshan and Zhongsha lowered the price by 400 RMB/ton to execute 7,300 RMB/ton. SunSirs predicts that acetone may continue to be lowered in the short term, and the overall market situation depends on further clarity in the post holiday market. Focus on downstream procurement and changes in the fundamentals of crude oil at the upstream of raw materials after the holiday.

In terms of propylene, according to the Commodity Market Analysis System of SunSirs, the average price in the Shandong market at the beginning of the week was 7,313.25 RMB/ton, and the average price on the weekend was 7,308.25 RMB/ton, with a weekly decrease of 0.07%. The Shandong propylene market was sorting out, with some factories making minor adjustments. The mainstream quotation in the Shandong market was 7,300-7,330 RMB/ton. International oil prices and polypropylene futures prices had fallen, the news was bearish and suppressed the market confidence. There was not much pressure on on-site inventory, and there was a strong willingness for upstream supporting prices. The market lacked guidance on positive news, and it is expected that weak consolidation and operation will be the main trend in the short term.

Market outlook

SunSirs’ IPA analysts believe that the raw material acetone price was lowered, and the propylene was sorting out, which resulted in weak raw material support. The domestic market demand was average. Downstream, stayed tuned, operated cautiously, and purchased on demand. It is expected that the IPA market may tilt downwards in the short term.

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