Slightly different from the previous few days of warming up, this week’s hot deal in the propylene market, price increases have also expanded, and some factories have even snapped up phenomenon, factory premium sales. Zhuochuang believe that the three factors driving the price of propylene market, first, high crude oil prices, second, supply in the region is less, third, near the end of the year, the lower plant procurement initiative higher. 

In most cases, propylene is affected by three factors: Crude oil, supply and demand. So let’s take a look at these three reasons why the propylene market has done so well. Crude oil prices rose in January 2018 as a whole. Crude oil futures prices have fallen slightly in recent days on the back of a stronger dollar and a rise in US crude oil production, but international oil prices are expected to rise in January by the most in nearly five years. Most of the propylene plants in Shandong are mainly oil-based propylene, high oil prices, for propylene has a certain cost support, and good commodity market mentality. S

econdly, the recent supply in the region has decreased, although close to the year, but larger propylene plant, no special circumstances, production during the Spring Festival holiday is not expected. According to Zhuochuang Information, some of the propylene plants have reduced their production load due to equipment problems, with the unit volume being reduced by about 200 tons per day. Moreover, due to the impact of the rainy and snowy weather this week, the cycle of shipments from outside the region to Shandong has been extended. This week, the amount of propylene arriving at the port is relatively small, at present, only about a ship of propylene, and traders are not active in shipping, so most of the downstream plant near the main purchase, near refinery propylene inventory low, some factories even appear production and marketing phenomenon.

Finally, downstream factories are actively purchasing

It is reported that a powder plant to reduce the load of production, procurement needs to reduce about 1000 tons per day, but powder prices are relatively high, propylene is good support. Individual powder plant active in the surrounding plant procurement, other downstream plants also need to maintain raw material inventory, downstream procurement demand is strong, there are some factories already stock signs.