Price trend

According to the Commodity Analysis System of SunSirs, the market price of 2-EH in Shandong Province had slightly increased this week. This week, the average price of 2-EH in the mainstream market of Shandong region increased from 11,220.00 RMB/ton at the beginning of the week to 11,280.00 RMB/ton at the weekend, an increase of 0.53%, and the weekend price increased by 21.73% year-on-year.

On November 20th, the 2-EH commodity index was 83.09 points, an increase of 0.15 points from the previous day, a decrease of 39.57% from the highest point in the cycle of 137.50 points (2021-08-08), and an increase of 136.39% 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)

Upstream support was insufficient, downstream demand was average

From the supply side perspective, the prices of mainstream manufacturers of Shandong 2-EH had fluctuated this week, with average inventory: Lihua Yi2-EH's factory price for the weekend was 11,300 RMB/ton, which was an increase of 100 RMB/ton compared to the beginning of the week; The factory price of Hualu Hengsheng’s 2-EH for the weekend was 11,700 RMB/ton, which was an increase of 200 RMB/ton compared to the beginning of the week; The weekend market price of 2-EH in Luxi Chemical was 11,200 RMB/ton, and compared to the beginning of the week, the quotation decreased by 300 RMB/ton.

From the upstream raw material market of 2-EH, the propylene market had slightly declined this week, with prices dropping from 7,203.25 RMB/ton at the beginning of the week to 7,198.25 RMB/ton at the weekend, a decrease of 0.07%, and a year-on-year decrease of 0.45% over the weekend. The upstream raw material market prices had slightly declined, with insufficient cost support. Due to the impact of supply and demand, it had a negative impact on the price of 2-EH.

From the downstream market of 2-EH, the DOP market price had slightly decreased this week. The price of DOP decreased from 11,383.33 RMB/ton at the beginning of the week to 11,259.17 RMB/ton at the weekend, a decrease of 1.09%, and the weekend price increased by 11.48% year-on-year. Downstream DOP prices had slightly declined, and downstream customers' enthusiasm for purchasing 2-EH had weakened.

Market outlook

In late November, the Shandong 2-EH market may experience a slight fluctuation and decline. The upstream propylene market had slightly declined, with insufficient cost support. Downstream DOP market slightly declined, and downstream demand weakened. SunSirs’s 2-EH analysts believe that in the short term, the domestic 2-EH market may experience minor fluctuations and declines due to various factors such as supply and demand and raw materials.

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