After the Dragon Boat Festival holiday, the propylene market went bad and the price center continued to fall. The mainstream price of Shandong propylene fell from 8,500 yuan/ton to 8,100 yuan/ton, a decrease of 4.7%. The recovery of supply and weak demand were the main reasons for the drop in propylene prices. At the time of falling prices, bad news buoyed and exacerbated the market's decline. At present, the market still has no signs of falling, and the Shandong market is at risk of 8,000 yuan/ton.
The price of propylene in the market has continued to fall recently, and the current price center of gravity has fallen to the lowest point since May. At present, the mainstream price in Shandong has fallen to around 8,100 yuan/ton, with a decrease of 4.7%. As far as the market is concerned, there is no sign of a drop in the market. , Prices have fallen more and more, the market mentality is also relatively weak, the market may be closer to 8,000 yuan / ton.
Recalling that the previous wave of price increases, the main impact was the Qingdao Summit, which had a greater impact on transportation. After the summit ended, the downstream markets were replenished. The market was favorably supported and prices continued to rise. However, as propylene prices continued to rise, The downstream stocking also basically ended, and the resistance also gradually increased. The spread between powder and propylene has narrowed to a low level. Polypropylene futures prices have continued to fall. They have now fallen below the 9,000 yuan/ton mark. The supply of propylene also increased from the previous period. North China Propylene inflows into Shandong Province in northeastern China and increased in the previous period. Downstream demand gradually decreased, Binhua, Jishen propylene propane unit was overhauled, Xinyue propylene propane unit was under load, and Lihua Yiding octanol plant was also in service soon. The continuous low load on the start of the plant has formed a big negative for the propylene market.
The drop in the price of propylene has gradually increased. The single-day decline has increased from about RMB 50/ton to about RMB 100/ton. It looks like the market pressure continues to rise. However, in terms of downstream profitability, it looks like it is still good. Propylene oxide and But octanol does not have to say much more. The profit margin continues to be good. Even if the profitability space is relatively normal, the spread between propylene and the current price also reaches 500-600 yuan/ton. There is also a certain amount of space. Then, the problem is coming. How much is the reasonable psychological price of propylene in the end? This is a crucial issue that directly determines when the downstream starts to replenish propylene. Overall, this wave of propylene prices fell below the 8,000 yuan/ton mark. It still exists, but once it has fallen below the 8,000 yuan/ton mark, the space for continued decline will be limited, and the downstream will also start to replenish. Therefore, this weekend is a more critical time node, and the market may show a stabilizing trend next week. Trends.