Price trend

According to the monitoring of the commodity market analysis system of SunSirs, the market price of IPA first fell and then rose in January. On January 1st, the average price of IPA in China was 6,660 RMB/ton, and on January 22nd, the average price was 6,660 RMB/ton, which was the same as the beginning of the month. The lowest price this month was 6,580 RMB/ton, and the highest price was RMB/ton.

Analysis review

The market price of IPA first fell and then rose in January. In the first half of the month, the market price of raw material acetone was low, and cost support was limited. The IPA market was relatively light, with overall purchasing intentions of downstream terminals being average. The sentiment of holders was unstable, with narrow discounts on transactions and a downward focus on trading. In the second half of the month, the price center of acetone market was upward, with strong cost support. In addition, with the approaching Spring Festival and downstream stocking up, IPA manufacturers were offering higher prices, and traders had a better mentality, increasing their intention to replenish. In addition, supported by some export orders, the spot market supply was tight, and the trading center was upward. As of January 22nd, most of the IPA market prices in Shandong were around 6,500-6,600 RMB/ton; The majority of IPA prices in the Jiangsu Zhejiang region were around 6,750-6,850 RMB/ton.

In terms of raw material acetone, the overall price of acetone in the domestic acetone market increased in January. On January 1st, the average price of acetone was 5,992.5 RMB/ton, and on January 22nd, the average price was 6,097.5 RMB/ton. The price increased by 1.75% during the month. As the Spring Festival holiday approaching, most companies have finished stocking up, and market trading follow-up was gradually weakening. The acetone market maintains a weak operation in the short term, with slight adjustments during the pre holiday period.

In terms of propylene, overall in January, the domestic propylene market prices first rose and then fell. At the beginning of January, the market was average at 6,835.75 RMB/ton, with an average price of 6,808.25 RMB/ton on January 22, a monthly decline of 0.4%. As of January 22nd, the inventory pressure of propylene enterprises has decreased, and downstream companies were replenishing inventory at low prices, which has driven the overall delivery direction to improve and the shipment situation to improve. It is expected that propylene prices will remain stable with a stronger trend in the short term.

Equipment situation: Kailing Chemical's 100,000 tons/year acetic acid isopropyl ester process unit has been shut down. The 50,000 tons/year acetone hydrogenation unit of Zhejiang Xinhua IPA has been shut down, while the propylene unit has started stable operation.

Market outlook

An IPA analyst from SunSirs believes that the rise in raw material acetone prices in January provided strong cost support. Approaching the Spring Festival holiday, downstream and traders have basically completed their year-end restocking, and market trading has slowed down. It is expected that the IPA market will remain stable and consolidate in the short term.

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