1、 Price trend
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According to the data monitoring of the business community, the domestic propylene (Shandong) market fell one after another this week. The average price of the Shandong market at the beginning of the week was 7720 yuan/ton, and the average price at the weekend was 7434 yuan/ton. The weekly decline was 3.7%, up 2.62% from 30 days ago.
As of December 9, the mainstream prices of propylene in different regions in China are as follows:
Region. December 2
Shandong Province/7400-7500 yuan/ton
Northeast China/7100-7200 yuan/ton
East China/7300-7350 yuan/ton
2、 Analysis and review
According to the monitoring of the business community, propylene fell back after rising this week, and the price rose like a flash in the pan. The price fell rapidly due to the lack of real order support. At the beginning of the week, due to the price rising to a high level last week, downstream polypropylene and other products’ profits were tightened, the commencement of work was reduced, and procurement was restrained. In order to stabilize the delivery of propylene, the prices of propylene enterprises decreased successively. On the news side, the crude oil price continued to drop, further depressing the mentality of the industry. As of this Friday, Shandong’s mainstream quotation was 7400-7450 yuan/ton.
Upstream: On the cost side, the crude oil price continued to decline this week. As of the closing of December 9, the WTI fell 0.44 to 71.02 US dollars/barrel in January 2023, down 0.62%; In February 2023, Brent fell 0.05 to 76.10 US dollars/barrel, a decrease of 0.07%. The price of crude oil hit a new low in the year, and the cost of propylene moved downward.
Downstream: The market of some products in the downstream mainly declined. In the past three months, the market showed a small rise and a sharp fall. The decline of some products exceeded 20%. In order to control profits and reduce negative operation, the demand for propylene was restrained.
3、 Future market forecast
According to propylene analysts from Chemical Branch of Business Cooperative, the economic recession is expected to remain unchanged. With the accumulation of upstream inventory, the enthusiasm for downstream procurement is not high. It is expected that propylene will still have room for decline next week.
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