Propylene market demand is weak, the price trend can be strong?

April-May Shandong propylene market price was a “V” -shaped trend, so far, Shandong propylene market price has been stable at 6800-6850 yuan / ton, compared with the lowest point rose 600 yuan / ton, or 9.64%.

From the supply side, the current volume of propylene in Shandong is less, Shandong region itself is a shortage of the status quo, the current Yangshi Hengtong and a PDH device is still in a shutdown state, the region itself to reduce the supply of propylene, part of the downstream increase in Local refinery shipments; outside the plate propylene upside down, manufacturers to reduce imports, external supply shortage. In the case of reduced merchandise, refinery inventory low, the seller is quite strong intention, then the propylene can always be strong?

Since mid-April the international crude oil prices have been in the downward trend. Crude oil prices fell, but propylene prices began to rebound to the present trend is stable, indicating that crude oil for the propylene market price guide is weak, but still bearish market.

From the downstream market point of view, the downstream demand for propylene has been in a downturn in the state, the enthusiasm for the procurement of propylene is not high, especially polypropylene powder, by the weak demand for terminal, polypropylene powder operating rate has been maintained at 6 Into the left and right, compared with previous years at a low level. According to the operating rate of propylene downstream of last week statistics, the rate of operating rate of octoxyphenol device decreased, it is understood that in May, Shandong part of the octanol device maintenance, for the procurement of propylene demand has decreased.

Through the upstream and downstream look to the market outlook, the supply side, the end of the early parking device will continue to drive, imports of propylene will also add a certain degree to the market, propylene supply will increase; in demand, the downstream polypropylene powder is now approaching costs Line, some powder manufacturers have been forced to stop the risk of propylene rose a certain degree of difficulty. Expected demand will continue to be the main factor affecting the trend of the propylene market, Shandong propylene market, the mainstream price is slightly lower expected, is expected to be limited.