SunSirs: Propylene Market Stopped Falling and Rose (April 3-7)
April 10 2023 11:18:19 SunSirs (John)
Price trend
According to the Commodity Market Analysis System of SunSirs, the domestic propylene (Shandong) market stopped falling and rose this week. The average price of the Shandong market at the beginning of the week was 6,986 RMB/ton, and the average price at the weekend was 7,120 RMB/ton, with a weekly increase of 1.92% and a year-on-year decrease of 16.08%.
Analysis review
According to data monitoring from SunSirs, the propylene market in Shandong stopped falling and rebounded this week, with a clear upward trend. At the beginning of the week, crude oil prices significantly increased, and then continued to rise slightly, leading to a cost driven increase in propylene prices. In terms of supply, some devices in Shandong were shut down for maintenance, resulting in a decrease in supply, further boosting market confidence. As of this Friday, the mainstream quotation in the Shandong propylene market was 7,150-7,200 RMB/ton.
This week, the propylene industry chain saw mixed ups and downs. Thanks to the surge in crude oil, the downstream PP market had risen, and the price difference between propylene and PP had widened. The factory returned profitability, stimulating active procurement from the main downstream.
Market outlook
Propylene analysts from SunSirs believe that the current crude oil price trend is slowing down, and the good news for propylene is about to run out. In addition, due to the impact of surrounding land prices and supply, there is insufficient momentum for further upward movement in the future. It is expected that propylene will stop rising and consolidate in the short term.
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