According to the bulk list data of Business News Agency, in March, the domestic propylene (Shandong) market fluctuated and fell, with a rebound at the end of the month. At the beginning of March, the market was at 7522 yuan/ton, and on March 29, the average price was 7096 yuan/ton, with a monthly decrease of 5.66%, down 16.52% compared to the same period last year.

As of March 29, the mainstream prices of propylene in various regions in China are as follows:

Region/ March 29th

Shandong region/ 7100-7150 yuan/ton

Northeast China/ 6700-6800 yuan/ton

East China Region/ 7000-7250 yuan/ton

In March, the overall performance of the propylene market was weak, with small gains and small losses dominating. At the beginning of March, intramarket trading was moderate, manufacturers’ inventory was controllable, and individual enterprises ceded profits to sell goods, resulting in a narrow decline in propylene prices. In mid to late March, downstream procurement was cautious and bargain-hunting led to lower demand for propylene, which was tentatively driven up by upstream demand. However, due to the impact of lower oil price shocks, the industry was mostly bearish and constrained the propylene market, leading to a volatile decline in the propylene market throughout the month. As the end of the month approached, oil prices rebounded while propylene prices were adjusted to a low level, leading to a rebound in prices. As of March 29, the mainstream price in the Shandong propylene market was 7070-7100 yuan/ton.

Cost side: In March, the price of upstream propylene products fell significantly, especially the prices of propane and liquefied gas. The overall price of oil fluctuated and decreased, and the weak cost side had a significant impact on the negative impact of propylene. On the demand side: downstream derivatives of propylene have seen a large decline and a small increase. The main downstream polypropylene is generally weak, while other downstream products have performed mediocrely, and the demand side remains just in demand.

The propylene analyst from the Chemical Branch of the Business Society believes that the propylene market rebounded at the end of the month, with a slight boost in confidence on the market. The propylene factory has been able to move smoothly at low prices and effectively eliminate inventory. It is expected that the propylene market will continue to rise in a narrow range in April.