Price trend
According to the monitoring of the commodity market analysis system of SunSirs, the domestic IPA market in October first rose and then fell, and overall the price fell. On October 1st, the average price of IPA in China was 6,710 RMB/ton, and on October 30th, the average price was 6,670 RMB/ton. The price dropped by 0.6% during the month.
Analysis review
In October, the domestic IPA market first rose and then fell, and overall prices fell. In the first ten days, the overall market sentiment was good, and the cost support of propylene was strong, resulting in an upward trend in on-site prices. In the middle of the month, the market trading was average, and there was a strong wait-and-see sentiment in the market. They purchased goods on demand, and actual orders were made according to the market, with cautious transactions. In late October, the mentality of the IPA market was unstable, and the focus of on-site negotiations was still relatively low. The overall trading performance of the market was poor, and there was a strong demand for goods, but caution was exercised in actual orders. As of October 30th, most of the IPA market prices in Shandong were around 6,600-6,675 RMB/ton; The majority of IPA prices in the Jiangsu Zhejiang region were around 6,750-6,800 RMB/ton. The quotation for the South China region was around 7,100 RMB/ton.
In terms of raw material acetone, the acetone market rose in October. On October 1st, the average price of acetone was 5,865 RMB/ton, and on October 30th, the average price was 6,037.5 RMB/ton, with a price increase of 2.94%. The overall performance of acetone in October was still acceptable, and the inventory on site was controllable. As of October 30th, the market circulation was tight, and the quotes from large factories had increased. Traders' mentality was supported, with firm and upward quotes. It is expected that the acetone market will remain strong in the short term, and attention should be paid to the actual market situation.
In terms of propylene, the propylene market fluctuated and rose in October. On October 1st, the average domestic propylene price was 6,513.25 RMB/ton, and on October 30th, the average price was 6,828.25 RMB/ton, with a price increase of 4.84%. As of October 30th, the enterprise inventory had increased, downstream production levels were relatively low, demand was average, and actual purchases were cautious. It is expected that the market will experience fluctuations and consolidation in the short term.
Equipment situation: Kailing Chemical's 100,000 tons/year acetic acid isopropyl ester process unit had been shut down, and the 100,000 tons/year acetone hydrogenation process IPA unit had been started in combination with the export situation. The 50,000 tons/year acetone hydrogenation unit of Zhejiang Xinhua IPA has been shut down, while the propylene unit had started stable operation. The 50,000 tons/year acetone based IPA plant of Shandong Dezhou Detian Chemical had started normal operation. Jinzhou Petrochemical maintained normal production of two 100,000 tons/year propylene based IPA production lines.
Market outlook
An IPA analyst from SunSirs believes that the domestic IPA market first rose and then fell this month. Overall, the terminal market had a low operating rate, while the downstream market had a mediocre performance. Downstream inquiries were mainly based on demand, and there was a strong atmosphere of observation in the market. It is expected that the IPA market will consolidate to stabilize in the short term.
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