Propylene Market Review after Spring Festival Holiday & Forecast

SCI99

2021-02-24

Propylene Market Review after Spring Festival Holiday & Forecast

Lead: Supported by cost, supply and demand, prices of propylene and related products rose rapidly after the Spring Festival holiday. Profits from producing oxo-alcohols and PO were considerable, so the demand for propylene was strong. However, the rapid rise in propylene prices gradually increased the cost pressure on PP powder producers, so the profits and purchase of PP powder producers became the key factors influencing the propylene price trend. Taking into account the maintenance of more propylene units in spring, the commissioning of newly added downstream units and demand recovery, SCI predicts that the propylene market price will move up.

1. The propylene price fluctuation

Before and during the Spring Festival holiday, China’s propylene market prices mainly stabilized, and the propylene market price in Shandong was stable at RMB 6,950/mt. From February 15, 2021, the propylene market price in Shandong began to rise slightly, with a daily increase of RMB 50/mt, and that rose to RMB 7,100/mt as of February 17. From February 18, the propylene market price in Shandong began to increase sharply, with a daily increase of RMB 200-400/mt. As of February 23, the mainstream market price of propylene in Shandong was RMB 8,500/mt, up 22.30% from before the holiday and 17.24% from the beginning of 2021, as well as up 26.87% Y-O-Y.

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