Propylene rebounded at the bottom in November, with insufficient stamina

According to the bulk list data of business cooperatives, the domestic propylene (Shandong) market performed generally in November, rising first and then operating in a narrow range. At the beginning of November, the market was 7036 yuan/ton. On November 25, the average price was 7296 yuan/ton, with a monthly increase of 3.69%, 5.96% lower than the same period last year.

As of November 25, the mainstream prices of propylene in different regions in China are as follows:

Region/November 25

Shandong Province/7300-7350 yuan/ton

Northeast China./7000-7100 yuan/ton

East China./7150-7250 yuan/ton

At the beginning of November, Shandong market was affected by domestic public health events, which led to blocked enterprise shipments, poor on-site transportation, and low end prices falling below 7000 yuan/ton. In the second week of November, the market hit the bottom and rebounded. On the one hand, logistics recovered gradually, and propylene enterprises moved smoothly. On the other hand, low prices stimulated the enthusiasm of downstream procurement to improve. Proper replenishment and restart of downstream devices led to a rapid rise in the price of propylene in Shandong to 7300 yuan/ton. From the middle of the month to the end of the month, due to the price rise and the lack of downstream purchasing stamina, the propylene market began to fluctuate and stabilize, and the market supply and demand did not change much. As of November 25, the mainstream price of propylene in Shandong was 7300 yuan/up and down.

The industrial chain of propylene industry declined mainly, and the propylene market in November was not as expected due to the downstream demand. On the cost side: crude oil fell in shock, the prices of naphtha and methanol fell to varying degrees, and the prices of liquefied gas and propane were relatively strong, with a steady upward trend, but the main cost side supported weak. Demand side: In November, the downstream product market fell in a wide range, the price of acrylic phenol fell by more than 10%, the polypropylene market was weak and consolidated, the increase in demand for propylene was limited, and the downstream gas buying was insufficient, resulting in weak propylene growth.

Propylene analysts from the Chemical Branch of the Business Community believe that the demand may further weaken in December, and with the escalation of national public health and safety incidents, the propylene market is expected to decline in December.