[Propylene]: Morning Market Update

1. Key Focus Points

1. Mixed Movements in International Crude Oil Prices:
   On Wednesday (October 21), the NYMEX WTI crude oil futures front-month December contract closed at $97.15/bbl, down $0.67/bbl (-0.68% WoW). The ICE Brent crude oil futures December contract closed at $108.82/bbl, up $0.03/bbl (+0.03% WoW). China’s INE crude oil futures December 2026 contract fell by 26.5 yuan to 700.8 yuan/bbl, while the night session dropped by 10.5 yuan to 690.3 yuan/bbl.

2. Propylene Production Costs (as of October 20):

   • Naphtha-to-propylene cost: ~9,715 RMB/ton
   • PDH (Propane Dehydrogenation)-to-propylene cost: ~10,281 RMB/ton
   • Methanol-to-propylene (external methanol procurement) cost: ~11,732 RMB/ton

3. Shandong Market Prices and Spreads (as of October 21):
   Shandong propylene market price was 10,275 RMB/ton. Polypropylene (PP) powder (Linyi 045 grade) was 10,700 RMB/ton. The spread between PP and propylene has widened.

Core Logic: Mixed international crude oil prices, narrow fluctuations in production costs, and a widening spread between PP and propylene.

2. Price Table

Notes:

1. This table lists mainstream transaction prices for key propylene markets. All prices are VAT-inclusive, in RMB/ton.
2. Prices represent point-in-time values from the two preceding working weeks, not weekly averages.
3. Change rate refers to the week-over-week percentage change.

3. Market Outlook

As propylene prices have retreated to lower levels, market willingness to replenish stocks on dips has increased. Buying sentiment has improved marginally, which may provide support for market trends. Propylene market prices are expected to stabilize today, with potential for slight upward adjustments in some low-priced inventory.

4. Data Calendar

Notes:

1. ↓↑ indicates significant fluctuation (highlighting data dimensions with changes exceeding ±3%).
2. ↗↘ indicates minor fluctuation (highlighting data dimensions with changes within ±0-3%).