Price trend

According to the monitoring of bulk commodity data, the price of IPA fell this week. Last Friday, the average domestic IPA price was 8,800 RMB/ton, and this Friday’s average price was 7,900 RMB/ton. The price dropped sharply within the week by 10.23%.

Analysis review

The price of IPA fell sharply this week. Internationally, the US IPA closed down on May 18, and the European IPA market closed down. As of the 21st, the domestic quotation range of IPA in Shandong was around 7,200-8,300 RMB/ton, and the quotation range of IPA in Jiangsu was around 7,700-8,400 RMB/ton. Zhejiang IPA quotation range was around 7,500 RMB/ton. The raw material acetone fell, the operating rate of the acetone process IPA plant in East China increased, the downstream wait-and-see sentiment was obvious, the on-site inquiries were normal, the IPA on-site trade was short, and the price fell more obviously

In terms of raw material acetone, the domestic acetone market dropped significantly this week. Last Friday, the average domestic acetone price was 7,400 RMB/ton, and the average price this Friday was 6,875 RMB/ton. The price fell by 7.09% within the week. The domestic acetone market continued its downward trend. The market holders were under greater pressure, and offers continued to fall. The downstream terminal factories had a downturn in replenishment and it was difficult to change. Low-priced sources of goods were frequently seen in the market. In addition, phenol, a product of the same device, had seen a significant increase in the early stage, and the plant's phenol and acetone device started at a high level.

In terms of raw material propylene, the overall price of propylene market was lowered this week. Last Friday, the average domestic propylene price was 8,371.18 RMB/ton, and this Friday’s average price was 8,034.82 RMB/ton. The price dropped by 4.02% within the week. As of the 21st, domestic inventory was low, some installations were overhauled, companies had suspended quotations, crude oil prices had dropped significantly, and downstream operating rates were average. Propylene is expected to fluctuate with the crude oil market and continue to decline.

Market outlook

The IPA analyst of SunSirs believes that: foreign export orders are general, the price of raw acetone has dropped significantly, the operating rate of the East China acetone process IPA plant has increased, the spot supply is sufficient, and the holders are under greater shipping pressure. Because of the mentality of buying up and not buying down, the downstream tends to wait and see, and the trading atmosphere on the market is relatively empty. It is expected that IPA will still be down-regulated in the short term.

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