1、 Price trend

According to the data monitoring of the business community, the domestic propylene (Shandong) market fell after rising this week (11.14-11.18). The average price of the Shandong market at the beginning of the week was 7312 yuan/ton, and the average price at the weekend was 7230 yuan/ton. The weekly decline was 1.12%, down 2.77% from 30 days ago.

As of November 18, the mainstream prices of propylene in different regions in China are as follows:

Region/November 18

Shandong region./7200-7250 yuan/ton

Northeast China../6850-6900 yuan/ton

East China/7100-7150 yuan/ton

2、 Analysis and review

According to the monitoring of the business community, as of this Friday, the mainstream quotation of propylene (Shandong) market was 7200-7250 yuan/ton. Due to the large increase last week, the downstream was wait-and-see and the demand was suppressed. In order to stabilize the delivery of goods, the refinery lowered the price and gave up the increase. The overall supply and demand of propylene market is stable, with downstream demand as the main demand. However, this year, there are many new capacity, relatively loose supply, and great resistance to price rise. Affected by the sharp drop of crude oil on Friday, the market mentality was depressed, and the downstream receiving was slightly cautious.

Upstream: crude oil prices fell broadly this week. As of the end of November 17, WTI fell 3.95 to 81.64 US dollars/barrel in December, down 4.61%; In January, Brent fell 3.08 to 89.78 dollars/barrel, down 3.31%. Negative cost support. Downstream market was mixed, and the demand for some products was good, but polypropylene was still weak, holding back the propylene market.

3、 Future market forecast

According to the propylene analysts from the Chemical Branch of the Business Cooperative, the current long short game in the propylene market is affected by the sharp drop in crude oil. Under the leadership of bad news, propylene prices are expected to continue to decline in a narrow range next week.