Sparse Transactions Indicated the Upcoming Price Falling

Introduction: The supply tightness in the propylene market lasted from early July to mid-August. However, the operating rates of PP powder producers slumped and the general demand for propylene weakened, as the PP futures prices decreased. The shipment of refineries kept decreasing every day. With the increasing port resources and the restart of the closed refineries, the propylene supply was also trending negatively. The fundamentals of propylene have changed, and propylene prices might decrease.

Supply:

Remarks: NO = normal operation; TA = turnaround; SD = shutdown; RS = restart

During this week, the shiploads that were blocked by typhoon in East China arrived. The 60kt/a propylene unit at Shandong Lianmeng Chemical Group, the 50kt/a propylene unit at Shandong Fuyu Chemical and the 80kt/a propylene unit at Qingdao Anbang Petrochemical restarted. Among the closed refineries, Shandong Dongming Petrochemical Group is preparing to restart units; Hualian Petrochemical, Dongying Haike Ruilin Chemical and Boxing Yongxin Chemical Industry are quite likely to restart next week. For the refineries which experienced unplanned shutdown like Zhenghe Group, Dongfang Hualong Group and Shandong Qicheng Petroleum, they are predicted to restart gradually next week. Sources said that the PDH unit at Oriental Energy New Material (Ningbo) and the MTO unit at Jiangsu Sailboat Petrochemical were prepared to restart recently. Now most closed refineries are recovering their production and the propylene supply will surge next week.

……

More detailed information, please click "Read more".