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Unexpected Surge in Propylene Prices

SCI99

2020-04-14

Unexpected Surge in Propylene Prices

On April 10, mainstream prices of propylene in Shandong were RMB 5,900-5,950/mt, up RMB 800/mt or 15.61% from April 3. This increase caught the industry off guard.

From April 11 to April 12, the real huge increase appeared in the propylene market. The offers at propylene producers generally rose by RMB 1,000-1,100/mt on April 11, and those rose by RMB 500-5,000/mt on April 12. Hereinto, the increase in propylene offers at various producers was relatively unified on April 11, but that was different on April 12.

According to SCI, the dealing prices of some propylene resources in Shandong were RMB 7,400-8,000/mt on April 12, and it was not heard that the propylene in Shandong was traded at RMB 12,000/mt.

From 2013 to now, only December 2014 saw a single day price change of more than RMB 1,000/mt. The main reason for the sharp drop in propylene prices at that time was that the international crude oil price and Asian propylene prices crashed. From December 1, 2014 to December 18, 2014, the decrease in WTI prices reached 21.6%. In addition, the reason for the surge in propylene prices at that time was that that PP powder prices jumped from RMB 7,600/mt to RMB 9,000/mt.