November 23, 2023
Price trend
According to the Commodity Market Analysis System of SunSirs, the domestic propylene (Shandong) market fluctuated significantly this week (11.13-11.17). The average price of the Shandong market at the beginning of the week was 7,203 RMB/ton, and the average price over the weekend was 7,198 RMB/ton, with a weekly decrease of 0.07% and a year-on-year decrease of 0.45%.
Analysis review
According to the Commodity Market Analysis System of SunSirs, the propylene market rose first and then declined this week. At the beginning of the week, international oil prices rose, and the news was positive, supporting the mentality of the industry. Propylene prices showed a slight increase. Subsequently, the price of propylene rose to a high level, and downstream profit margins decreased, leading to a boycott mentality and a strong wait-and-see atmosphere. Upstream, in order to stimulate sales, mainly reduced prices and inventory.
Market outlook
Propylene analysts from SunSirs believe that in the short term, there will be limited changes in the supply of propylene in the future, and the demand side will follow slowly due to the impact of rising costs. Especially, the downstream polypropylene market remains weak and the buying intention is not strong. It is expected that the propylene market will be narrowly consolidated next week.
