Propylene Market Overview: Important for Octanol (Feb.11th- Feb.17th 2022)

Time: Feb 18, 2022

Propylene, as the main raw material for octanol production, has also attracted much attention in its market price. Today, Huafu Factory will share the overview of the domestic and international propylene market.

1.   Overview of the international market: The price of propylene in the Asian market rose steadily this week, and the center of gravity of the average price continued to move up slightly.

  • The focus of international oil prices moved up, and the support for the cost of propylene in the external market continued to increase;
  • The exchange rate cost of purchasing propylene in the external market did not change much.
  • The propylene external market is still relatively strong. The failure of the YNCC unit further aggravated the tight supply of propylene in the external market.
  • The bid-ask spread in the foreign market continued to widen, but the trading volume did not increase significantly.

2-Ethylhexanol factory supply

2.   Domestic market overview: This week, the price center of domestic propylene market is weak and down.

  • The oil price is volatile this week, and the cost has a certain impact on the mentality of the propylene market.
  • On the supply side, the fluctuation of devices is relatively limited, and the overall supply pressure in the market is controllable. Affected by weaker demand, the pressure on production enterprises to ship goods has increased slightly.
  • On the demand side, the spot price of the main downstream polypropylene futures continued to decline, and the cost pressure of powder factories increased, which was bad for propylene demand.
  • Downstream factories are cautious in purchasing on demand, and the overall demand for propylene is weak.

Octanol market

3.   Outlook for next week:

  • In terms of crude oil, oil prices will fluctuate widely next week, and we still need to be alert to cost fluctuations. On the supply side, the overall supply pressure in the market is expected to be controllable.
  • On the demand side, considering that the main downstream polypropylene cost pressure is too large, there is still a certain negative impact on the propylene demand, and the polypropylene price trend needs to be paid attention to.
  • Downstream factories are expected to wait and see more on demand, and the demand performance may be average.

On the whole, the supply and demand game in the propylene market will be the main game next week, and it is expected that the propylene market price will continue to run slightly weaker.

Factors to focus on: oil price trend, polypropylene trend, corporate inventory, plant start-up and shutdown


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