According to the monitoring data of SunSirs, the domestic propylene (Shandong) market showed a hump trend in February, with an overall decline. At the beginning of February, the average market price of propylene was 7,530 RMB/ton. On February 27, the average price was 7,426 RMB/ton, with a monthly decline of 1.38%, and down 9.44% from the same period last year.
The propylene market rose and fell in February, with two peaks. The first peak appeared in the first ten days of February because the price was relatively low, and the downstream replenished the warehouse when the price was low. The upstream inventory was controllable, and the price of Shandong propylene rose under the support of demand, but the demand was soon suppressed, and the price fell quickly. The second wave peak occurred in late February. Due to the frequent upstream parking news and the expectation of decrease at the supply end, the price of propylene in Shandong Province was actively pushed up by the news, but the response from the downstream was general, especially the serious loss of the polypropylene industry, and the start of construction fell to a low level, which was difficult to drive the demand for propylene, leading to a rapid fall in the price of propylene again.
In February, the price of the propylene industry chain rose and fell. On the whole, the cost support was moderate. Although the price of propane and liquefied gas fell, the price was still at a high level. The main downstream PP performance was weak, and the prices of other derivatives were mixed. The downstream demand was mainly in rigid demand, an and the mentality of resisting high price propylene was obvious.
Propylene analysts from SunSirs believe that the propylene market was dominated by the demand side and supported by the cost. It is expected that there is limited room for propylene to continue to fall in the short term, mainly fluctuate weakly.