Propylene: Market prices greatly benefit downstream products and turn losses into profits

After the continuous sharp drop in the propylene market price last week, the downstream factories have turned their losses into profits, and the enthusiasm for construction and procurement has been good, which has led to an improvement in the propylene market transactions, and the market price is expected to stabilize and rebou.

Last week, the domestic propylene market accumulated negatively, and the propylene market price fell under pressu.

The main negative factors for the market last week:

The international crude oil has plummeted for several days, and the negative impact on the cost side is obvious;

The price of polypropylene futures fluctuated and fell, and the spot price of powder materials was adjusted back;

Tianjin Bohua PDH unit returned to normal, and the downstream propylene supply increased slowly;

The downstream PP unit of Daqing Refinery was overhauled, and Daqing Petrochemical began to release propylene;

Weifang Hongrun and Dongchen Petrochemical gas sub-units were put into operation, and propylene production and sales returned to normal;

The arrival of propylene in Dongying Port and Weifang Port in Shandong area increased;

Luxi Chemical's butanol and octanol plant continued to operate at low load;

Dongfang Hongye's polypropylene plant reduced the lo.

It can be seen that the bad news in the propylene market is superimposed, the industry has a strong bearish mentality, and the price correction is the general tre.

Saudi Arabia considers taking action to stop the sell-off of crude oil, the RMB exchange rate is stable, the global stock market rises, and the international oil price rebounds;

The price of polypropylene futures fluctuated higher, and the spot price of powder material rose;

Most of the downstream products of propylene have turned losses into profits, and the enthusiasm for construction and procurement has been improv.

In the first half of 2019, most propylene downstream products made considerable profits, but since June this year, with the rapid increase in the propylene market price center, the profit margins of various downstream products have been greatly compress.

After the profit of the products, the enthusiasm for the start-up of downstream factories such as polypropylene, butanol and acrylic acid has also increased significant.

So can this wave of propylene market prices rebound, and how much can they rebound?

The main factors affecting the propylene market this week:

The 460,000-ton/year MTO plant of Sierbang and the 300,000-ton/year MTO plant of Shenhua Yulin are expected to resume and restart;

The overhaul of the propylene plant of Dongming Petrochemical has been completed, and part of the propylene will be gradually exported;

Qicheng Petrochemical's 70,000 tons/year propylene plant is scheduled to be overhauled;

Daqing Petrochemical propylene external release increment;

The long-term contract in the lower reaches of Tianjin Bohua Chemical Industry .

In the short-term, downstream products have turned losses and turned into profits, and the demand side of propylene has performed well, which may support the rebound of propylene market pric.