Poor Trading Performance, Domestic IPA Slightly Declined in Early July

Price trend

According to the monitoring of the commodity market analysis system of SunSirs, the domestic IPA market slightly declined in early July. On July 1st, the average price of IPA in China was 8,660 RMB/ton, while on July 9th, the average price was 8,590 RMB/ton. During the week, the price decreased by 0.81%.

Analysis review

In early July, the domestic IPA market slightly declined. The overall market situation was light, with poor trading on the exchange and a strong wait-and-see attitude. Downstream inquiries were average and they purchased just on demand. In addition, some enterprises such as Jinzhou Petrochemical and Ningbo Juhua had recently restarted their facilities, resulting in an overall increase in operating rates compared to last month. As of July 9th , the majority of IPA market quotations in Shandong region were around 8,400-8,600 RMB/ton; The majority of IPA prices in the Jiangsu and Zhejiang regions were around 8,650-8,700 RMB/ton. The quotation for South China was 8,800 RMB/ton.

In terms of raw material acetone, the acetone market declined in early July. On July 1st, the average price of acetone was 8,062.5 RMB/ton, while on July 9th, the average price was 7,767.5 RMB/ton, a decrease of 3.66%. The center of gravity of acetone continued to decline, although the port inventory was only 26,000 tons, demand was limited, and the follow-up of actual orders on the market was limited, resulting in flat transactions.

In terms of propylene, the propylene market has fluctuated and fallen this week. On July 1st, the average price of propylene in China was 7,133.25 RMB/ton. This Friday, the average price was 7,128.25 RMB/ton, with a price reduction of 0.07%. As of July 9th, the inventory of enterprises was controllable, and downstream demand was improving. It is expected that the market will be volatile and stronger in the short term.

The situation of IPA equipment this month

The Ningbo Juhua 50,000 ton/year acetone IPA plant resumed operation on July 9th.

Kailing Chemical's 100,000 ton/year acetone hydrogenation IPA unit had been shut down, and the 100,000 ton/year acetate isopropyl ester unit was operating normally.

Zhejiang Xinhua IPA 50,000 tons/year Acetone Hydrogenation Plant had been shut down, and the Propylene Plant was operating normally.

The 50,000 ton/year acetone IPA unit of Shandong Dezhou Detian Chemical had been shut down.

One of the production lines of Jinzhou Petrochemical's 100,000 ton/year propylene IPA unit was operating normally, while the other line was undergoing commissioning.

Market outlook

The IPA analyst from SunSirs believes that the market price of IPA had slightly declined this week. The focus of the acetone market was downward, while the price of propylene market was fluctuating and falling, with weak cost support. In addition, the overall operating rate of IPA had improved, but downstream demand had not substantially improved, resulting in poor order acceptance. It is expected that the short-term IPA market will continue to operate weakly.