According to the data monitoring of SunSirs, the domestic propylene (Shandong) market price continued to decline this week. The average propylene market price at the beginning of the week was 7,838 RMB/ton, and the weekend average price is 7,813 RMB/ton, a decrease of 1.57%.
According to the price chart of SunSirs, as of this weekend, the mainstream quotation of propylene (Shandong) market is 7,750-7,850 RMB/ton, the market supply pressure is increasing, and the price is downward under pressure.
On the supply side, some new production capacity was released, and the propylene market was relatively abundant. The pressure of production enterprises to ship goods has increased, and the pressure of periodic shipments has increased, resulting in a weak adjustment of propylene prices.
Cost: The price of raw materials is relatively high, and the support for propylene is acceptable. However, the demand is weak, the profitability of some downstream products is not high, and the start of construction is limited, which restricts the demand for propylene, resulting in a weak decline in the price of propylene.
Upstream: The upstream raw materials all fell to varying degrees this week, but the prices were relatively high, which played a certain supporting role for propylene.
Downstream: Downstream products also fell, and the main downstream polypropylene market was unlikely to improve significantly in the short term. The profits of downstream products such as acrylonitrile and phenolic ketones were not good. The products that rose in the early stage turned to falling from rising. The downstream lowered the purchase price of propylene and chose to buy at a low price, and the price of propylene fell under pressure.
The propylene analyst of SunSirs believes that the current market supply and demand contradiction is prominent, the profit space of the propylene industry is limited, and the market is under great pressure to sell goods. It is expected that the price of propylene may continue to decline in the near future.