Propylene is one of the chemicals with large output in the world, and also an important basic chemical raw material. Its downstream products are widely used in plastics, household appliances, medical devices, synthetic fibers, cosmetics, etc. Propylene industry is the core of petrochemical industry and plays an important role in the national economy. Propylene production is regarded as one of the important indicators of a country's petrochemical development level in the world.

From late August to early October, the domestic propylene market supply and demand improved significantly and the propylene price center continued to rise, boosted by the peak demand season of Jinjiuyin. However, in the middle of October, negative factors such as cost, demand and logistics dominated, and the propylene price center hit the top and fell back. In the short term, propylene prices may continue to weaken, but the space for continued decline is expected to be limited.

Since late August, the prices of chemical products, including propylene and downstream products, have generally risen, and the market trading mentality has gradually improved. In September, the profits of downstream chemical products, including phenol ketone, octanol and acrylic acid, rebounded, especially the profits of phenol ketone. In September, the monthly average gross profit of phenol and ketone was 1221 yuan/ton, up 1592 yuan/ton month on month. The improvement of downstream product market and profits has driven the purchase enthusiasm of raw propylene. With the addition of downstream factories preparing for the Mid Autumn Festival and the National Day Festival in September, the demand for propylene continues to be good, supporting the price of propylene. However, the main downstream polypropylene is facing certain cost pressure, and the powder plants are limited in their acceptance of propylene prices, which also restricts the rise of propylene. As a result, Shandong propylene market experienced a ten day price stabilization game in the middle and late September.

The easing of supply and demand pressure is the main factor supporting the rebound of propylene price. Under the background of capacity expansion and weak demand, domestic propylene was in a state of continuous oversupply from May to August, and the social inventory of propylene continued to accumulate, which was mainly accumulated in the inventory of production enterprises, resulting in greater pressure on propylene sales. However, the terminal demand is weak, the inventory of finished products in downstream factories is slowly digested, and the demand for raw propylene is not good, leading to the continuous decline of propylene price center. However, after entering the traditional peak demand season of "Jin Jiu Yin Shi", the market of downstream products has improved, and the purchasing enthusiasm for raw propylene has increased simultaneously. The social inventory of propylene has gradually shifted from the production enterprises to downstream factories. At the same time, affected by poor profits, new propylene production capacity has been delayed to varying degrees, and domestic propylene supply has been gradually tightened due to the maintenance of some propylene units. The inventory of propylene producers has generally fallen to a low level, supporting the continuous rise of propylene prices. (Test article)