SunSirs: Trading Atmosphere Weakened, and Propylene Prices Fell Broadly
April 24 2023 09:44:28 SunSirs (John)
Price trend
According to the Commodity Market Analysis System of SunSirs, the domestic propylene (Shandong) market experienced a broad decline this week. The average price in the Shandong market at the beginning of the week was 7,390 RMB/ton, and the average price over the weekend was 7,220 RMB/ton, with a weekly increase of 2.3% and a year-on-year decrease of 15.82%.
Analysis review
According to the Commodity Market Analysis System of SunSirs, the propylene market in Shandong fell significantly this week, especially in the second two days of the week, with daily declines reaching 150 RMB/ton. In April, the propylene market continued to rise, and downstream resistance to high prices intensified. The wait-and-see atmosphere was strong, coupled with the weakening of international oil prices, which further dragged down the market situation. Propylene enterprises took advantage of the situation to sell goods with a discount. As of this Friday, the mainstream quotation for propylene in Shandong region was 7,000-7,100 RMB/ton.
Recently, the upstream market of propylene had seen mixed ups and downs, with gains in liquefied gas and naphtha taking back. Propane continued to decline, exacerbating the bearish impact of the cost side. The downstream derivative market was not optimistic, with the price difference between propylene and polypropylene narrowing, and the main downstream procurement being suppressed. The demand side was further bearish for the propylene market.
Market outlook
Propylene analysts from SunSirs believe that international oil prices had weakened, demand was weak, and businesses had bearish expectations for the future. Under the atmosphere of buying up and not buying down, it is expected that the propylene market will continue to decline weakly in the short term.
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