SunSirs: In September, the Propylene Market Arrived as Scheduled, but the Stamina Was Insufficient
According to data from SunSirs’bulk list, the domestic propylene (Shandong) market price rose in September. The market price was 7,688 RMB/ton at the beginning of the month, and the average price at the end of the month was 7,965 RMB/ton, a 4.1% increase in the month.
According to SunSirs price chart, in early September, the propylene market was not as expected. The current mainstream price of propylene in the Shandong market is 7,600-7,620 RMB/ton. The buying atmosphere was insufficient, the delivery pressure on manufactures increased and they sold goods at a cut-price. Entering mid-September, the propylene market began to rise significantly, with prices rising by 300-350 RMB/ton from the beginning of the month. From the market perspective, in‘Gold September and Silver October’, the market had a good trading atmosphere. At the same time, the double festival was approaching, downstream stocking was active. Under the rising demand, the company’s goods were sold smoothly, the inventory was low, and the price rose accordingly. In late September, considering the downstream acceptance, the price of propylene fell by 50-100 RMB/ton.
On the whole, the prices of upstream crude oil, propane and other products had risen to varying degrees, especially the 9.91% increase in crude oil in September, which played a certain role in supporting the propylene market. Downstream products were dominated by growth. Among them, acrylic acid increased by 24.38% in September, and ECH increased by 45.85%, which further drove the propylene market.
The propylene analyst of SunSirs believes that the propylene market performed well-behaved in September, and the market saw a slight increase at the end of the month. It is expected that in October, the price of propylene may increase further, but the range is limited.