According to the Commodity Market Analysis System of Business Society, the domestic propylene (Shandong) market fluctuated and rose in August, with a significant increase towards the end of the month. At the beginning of August, the market was average at 6713 yuan/ton, with an average price of 7000 yuan/ton as of August 31st, a monthly increase of 4.28% and a decrease of 1.66% compared to the same period last year.

As of August 31st, the mainstream prices of propylene in different regions in China are as follows:

Region/ August 31st

Shandong region/ 7050-7100 yuan/ton

Northeast region/ 6650-6750 yuan/ton

East China region/ 6700-6750 yuan/ton

In August, the propylene market in Shandong fluctuated and rose, with prices gradually showing a stronger trend. At the beginning of the month, the rebound in crude oil and polypropylene prices led to a slight increase in the propylene market, leading to a narrowing of the price difference between polypropylene and propylene, a weakening of downstream purchasing willingness, and a weakening of the propylene market. Subsequently, the PDH device maintenance of Shandong enterprises resulted in a decrease in on-site supply, boosting market information and driving up propylene prices. Due to the impact of news and demand, the propylene market has experienced a fluctuating upward trend. Towards the end of the month, propylene on-site inventory is low, supply is tight, and with news boosting, prices have shown a broad upward trend.

Cost side: In August, the upstream of propylene showed varying degrees of increase, which effectively boosted the propylene market with enhanced cost support. On the demand side: Except for a few varieties, downstream derivatives of propylene have experienced varying degrees of increase, with some products experiencing an increase of over 20%. The production of downstream products is still good, and demand is steadily following up.

Propylene analysts from the Chemical Branch of the Business Society believe that the current propylene market has stable supply and demand, low inventory, and high enthusiasm for downstream entry. It is expected that the propylene market will tend to be strong in the short term.