Just this past weekend, compared to the OPEC + historic production cut agreement, the price of domestic propylene has risen wildly, or it can stimulate the sensitive nerves of domestic chemical industry people.
Acrylic staged weekend madness
In just one weekend, the price doubled. Saturday is to help buy goods, you can add any amount of money; Sunday is to help sell goods, it can be a little cheaper than the factory.
On the 10th, the PP05 contract closed at the daily limit and rose 1853 points on 9 trading days, closing at 7511 yuan / ton. The spot started from Secco S2040, polypropylene began crazy mode, from 6800 yuan / ton to 15,000 yuan / ton of fiber powder, from 9500 yuan / ton to 80,000 yuan / ton of melt-blown material. There are also 480 yuan / ton polypropylene fashion bags and school bags. All the people began to snap up polypropylene, irrespective of the grade and the purpose.
On the morning of April 13, the main polypropylene contract in the domestic futures market rose again strongly in 2009, and as of this morning closed at 7224 yuan / ton, an increase of 5.92%. Previously on April 10, the main contract of polypropylene 09 opened 6650 points, the highest 7007 points, closed at 6983 points, rose 240 points a day, an increase of 3.56%; while the 05 contract rose 732 points, the daily limit, a rise of up to 10% .
In fact, since April, polypropylene has maintained a strong market. On April 1-10, the PP spot stabilized after a slight shock. Since the sharp rise on the 6th, the weekly increase has reached 14.36%.
Unveiling the crazy veil of acrylic
The cumulative number of confirmed cases worldwide exceeds 1.84 million, and public health problems have intensified!
As of 6:30 on April 13th, Beijing time, a total of 18,40093 cases of new coronary pneumonia were diagnosed worldwide, and a total of 113,672 deaths.
The downstream products of polypropylene are BOPP film, CPP film, plastic woven, injection molding, non-woven fabric, etc. Due to the current huge demand for prevention and control materials, society's demand for some medical supplies and its upstream surged in the short term. The surge in demand has caught polypropylene companies and society off guard. At present, the production of fiber materials has reached an all-time high, and melt-blown polypropylene has also undergone a substantial expansion. Even so, some brand products still have a large gap. The "mask crisis" is the main factor driving up demand for polypropylene.
Petrochemical companies have switched to produce scarce varieties, resulting in many polypropylene companies converting to fiber materials, and the supply of drawing materials is tight. On the other hand, the terminal demand for polypropylene powder has obviously improved. During the same period, many small meltblown line devices have been launched in the market. The demand for high-melt fiber materials has soared, and the price of fiber materials has risen rapidly, further driving the polypropylene market to rise. . Some companies have closed their sales and stopped selling them. Of course, in addition to these two aspects, there are market effects of crude oil production cuts, the thrust of polypropylene futures and speculation factors. In short, under various assistance, the market of polypropylene has strongly increased, thus driving the activity of such factories to purchase raw material propylene.
After the crazy rise, other downstream losses of propylene
Behind the soaring propylene, profits of other downstream products have entered a comprehensive loss. Judging from the price of Shandong's propylene market value of 8,000 yuan / ton, the profit loss of downstream products increased, with a profit of propylene oxide of -543 yuan / ton, a profit of n-butanol of-1680 yuan / ton, a profit of octanol of-1780 yuan / ton, Nitrile profit -4200 yuan / ton.
The storage capacity of propylene is limited, it is difficult for traders to keep inventory for a long time, and the pressure on the tank capacity is large. Currently, the daily production of propylene is at a high level, while most downstream derivatives are still struggling to survive.
In the face of increasing profit losses, many downstream companies suspended their propylene purchases over the weekend, and production has also taken measures to reduce or even stop production. Propylene oxide: Jinling plant reduced the load to 50%, Xinyue reduced the load to 50-6%, Shi Dashenghua planned to stop. Butanol: Hualu Hengsheng has been shut down for maintenance on the 9th, Luxi Chemicals has temporarily maintained one line of production, Jianlan plant has been shut down, and Lihuayi Refining & Chemical has reduced its burden. Acrylonitrile: Haili lowers its negative operation, and it is expected to be stored and parked. Acetonephenol: Lihua Yiwei dropped far to 60%.
