Nov Propylene Prices to Fluctuate at Lows amid the Game Between Supply and Demand
Introduction: In October, the supply and demand support in China’s propylene market weakened, coupled with a decline in cost support, leading to a continuous decline in propylene prices, which once again hit a new low for the year. In November, the supply and demand in the propylene market are expected to remain weak, with a high probability of propylene prices fluctuating at lows. The average monthly price may experience a slight decrease from last month.
In October, China’s propylene market prices experienced a downward price trend, with the monthly average price showing a significant decline from last month. In the northern market, propylene prices continued to decrease amid weaker supply-demand support and cost support. Up to October 23, the average price in the Shandong propylene market was RMB 6,210/mt, down 5.45% MoM. In the southern market, both supply and demand weakened, and price trends were heavily influenced by the northern market. Up to October 23, the average price in East China was RMB 6,200/mt, down 4.25% MoM.
Northern China: Propylene prices decreased amid weaker supply and demand support.
In October, propylene prices in northern China showed a downward trend, and the monthly average price saw a significant decline from last month. On the cost side, major feedstock for propylene - crude oil and propane - both experienced a notable decline in prices, weakening cost support and exerting downward pressure on propylene prices. In terms of the supply, units of major plants in Shandong were restarted. Although some units remained in downtime, propylene market supply was ample, so propylene producers faced certain sales pressure, leading to continuous price concessions in propylene offers. In terms of the demand, downstream products faced cost pressure, and downstream plants presented reduced acceptance for propylene prices. In this context, the support for propylene demand weakened, dragging down propylene prices. Although cost pressure for propylene downstream derivatives eased slightly in the latter part of the month as propylene prices fell, downstream plants mainly engaged in bargain-hunting, showing mediocre purchase positivity for the propylene market.
In October, propylene prices in northern China showed a downward trend, and the monthly average price saw a significant decline from last month. On the cost side, major feedstock for propylene - crude oil and propane - both experienced a notable decline in prices, weakening cost support and exerting downward pressure on propylene prices. In terms of the supply, units of major plants in Shandong were restarted. Although some units remained in downtime, propylene market supply was ample, so propylene producers faced certain sales pressure, leading to continuous price concessions in propylene offers. In terms of the demand, downstream products faced cost pressure, and downstream plants presented reduced acceptance for propylene prices. In this context, the support for propylene demand weakened, dragging down propylene prices. Although cost pressure for propylene downstream derivatives eased slightly in the latter part of the month as propylene prices fell, downstream plants mainly engaged in bargain-hunting, showing mediocre purchase positivity for the propylene market.
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