1、 Price trend

According to the data of the bulk list of business agencies, the domestic propylene (Shandong) market continued to decline this week, with the decline increasing. The market was 7804 yuan / ton at the beginning of the week, and the average price at the weekend was 7654 yuan / T, down 1.91%.

2、 Analysis and comment

According to the price chart of the business agency, the propylene market this week is affected by the cost side, and the price of the company is down by 100-200 yuan / day this week compared with last week. The current market mainstream quotation is 7600-7700 yuan / ton, and the low-end price falls below 7000 yuan / ton. Downstream on demand procurement, general demand, cost side of the direct leading propylene market for nearly a week of price reduction.

This week, oil prices were still fermenting as OPEC and OPEC + reached an agreement on production increase, and worries over the virus of epidemic variation deepened the decline in oil prices. Crude oil fell 3.9 percent this week, which has a significant impact on the market’s profitability.

This week, PP prices fell slightly, the downstream enterprises started low and demand was scarce. The follow-up of purchasing was weak, and the response to high price sources was poor, with a decline of 0.19% in the week.

Acrylic acid prices continued to rise this week. Due to the overhaul of some enterprises, the spot supply was tight, downstream on demand procurement, the market trading and investment rhythm was active, and the price rose steadily. The increase was 1.39% in the week, which supported propylene.

This week, the price of propylene oxide rose sharply, the propylene oxide manufacturers were not pressured, the downstream polyether orders were stable and medium increment, and the market was up. The middle and lower reaches just needed to follow up steadily, the market was not pushed up, and the price rose 10.4 in the week, which supported the propylene market.

In general, the rise and fall of propylene downstream are mutual, and the overall demand level is not changed much.

3、 Future forecast

The propylene analyst of the chemical branch of the business society thinks: the propylene market is dominated by crude oil price, closely pays close attention to the change of oil price, and the probability of further low short-term price is high.