Price Trend

According to the data from the business associations’list, the market price of propylene (Shandong) has risen slightly in recent days. Because of the Mid-Autumn Festival on Friday, there are only four working days in this week. At the beginning of the week, the average price of enterprises is 7651 yuan/ton, while on Tuesday, it is 7650 yuan/ton. On Wednesday and Thursday, the average price of enterprises is stable at the high price on Wednesday, 7673 yuan/ton, with a weekly increase of 0.25%. The circumferential amplitude is 0.30%.

II. Analytical Review

Products: The market price of propylene in Shandong is generally stable. The price of propylene enterprises in Shandong Province increased by 50-100 yuan/ton on September 1st and then increased by 50-100 yuan/ton on September 2nd. On March 5th, only some enterprises increased slightly, but remained stable on June 8th, slightly declined by 50 yuan/ton on September 10th, and increased by 50 yuan/ton on September 11th. Today, the price of propylene enterprises is generally stable. At present, the market turnover is about 7600-7750 yuan/ton, and the mainstream price is about 7600-7750 yuan/ton. The price remains unchanged at 7,600 yuan/ton. As the Mid-Autumn Festival is approaching, downstream manufacturers are actively stocking up, upstream refineries are more willing to push up, shipments are relatively smooth, and transport of dangerous chemicals is limited during the holidays, the spot market is slightly tense.

Industry chain: Upstream, the international crude oil market plunged yesterday after hearing that US President Trump was considering relaxing sanctions on Iran, which had a negative impact on the propylene market. Downstream, downstream manufacturers are still profitable, holiday inventory is active. This week, polypropylene futures prices fluctuated slightly, spot prices declined slightly, with a weekly decline of 0.38%, which had no significant negative impact on propylene. Last weekend, acrylic acid prices rose 200 yuan/ton, up 2.53%, which was good for propylene market. Propylene oxide prices rose slowly, with a weekly increase of 0.65%, which had little impact on propylene. Oxychloropropane market rose at the beginning of the week, rising by 4.11% in seven days, epoxy resin prices rose, two-section manufacturers expected to stock in stages, but there is still some resistance to high-priced raw materials. Actual procurement caution, short-term epichlorohydrin market is expected to rise mainly in favor of the propylene market, while butanol market weekend; A small drop of 0.49% and a small increase of 0.22% in isooctanol were in the high finishing stage, which had little impact on propylene.

3. Future Market Forecast

Propylene analysts from Business Society Chemical Branch believe that: overall, the sharp drop in international crude oil on Thursday has a suppressive effect on the propylene market; however, the downstream market is mostly stable, rising slightly, and near the holidays, the supply is tight, the Mid-Autumn Festival transportation is limited, so the downstream stock is positive, which benefits the propylene market, so propylene is expected to rise steadily or moderately in recent days.