SunSirs: Shandong Propylene Market Was Under Pressure to Fall This Week (August 2-6)

　　Price trend

　　According to data from SunSirs’bulk list, the domestic propylene (Shandong) market was under pressure this week, and the price continued to decline.

　　Analysis review

　　According to the monitoring data of SunSirs, the price of propylene fell sharply this week. As of Friday, the mainstream price of propylene in Shandong was 7,700-7,750 RMB/ton, and the low-end price was 7,600 RMB/ton. Due to the sharp drop in crude oil prices, the propylene prices was under pressure downward, the market had a strong bearish attitude. The downstream demand situation was acceptable, but the negative impact of cost was strong and demand support was weak.

　　Due to concerns about slowing demand caused by the Delta virus, and concerns about oversupply caused by increased production in oil-producing countries, crude oil prices fell sharply this week. Crude oil fell by 6.57% this week.

　　PP prices fell weakly this week, the operating rate of downstream companies was not high, and demand was lacking. Purchasing was weak in follow-up and did not respond well to high-priced sources, with a decline of 1.77% during the week.

　　Acrylic continued to rise this week. Low industry inventories, coupled with the shutdown of some enterprises’installations, led to tight market supply. The just-needed support was obvious, and the market pushed up with a strong atmosphere, with a weekly increase of 4.72%, Which have a certain supporti for the propylene market.

　　IPA offers rose strongly this week, raw materials rose, and the market had a strong intention to increase, with a 7.29% increase during the week.

　　Market outlook

　　The propylene analyst of SunSirs believes that the cost is dominant, and the market outlook is more bearish on crude oil. It is expected that the propylene market will maintain a weak downward trend.