In the second half of the domestic propylene market demand or better

In the second half of the year, the demand for domestic propylene market has improved or improved. The domestic propylene market in the first half of the year is not very optimistic. Many companies have carried out major inspections for one or two months. Even if they do, they will have a certain impact on the demand for the domestic propylene market. What is the downturn in demand? According to experts, from the point of view of demand, although Jishen propylene oxide device is driving, it is good for the propylene market, but the demand for propylene industry chain terminal can not follow up, many downstream product market prices continue to decline, profit margins are compressed, raw materials under propylene It is difficult to form a strong support for half a year.

From the perspective of capacity, propylene and downstream products in 2014 have different degrees of capacity expansion. Compared with 2010, propylene's domestic production capacity increased by 46.43% in 2014. The productivity increase of its downstream products were respectively 48.46% for PP, 39.2% for propylene oxide, 66.02% for epichlorohydrin, 159.83% for acrylic acid, and 40.84% ​​for acrylonitrile. PP downstream plastics processing companies have limited demand, high levels of conflict, and more on-demand procurement, with the gradual decline in market arbitrage space, PP prices fall gradually open space. According to experts from China epoxy network, in the second half of the year, although Shaanxi Province has extended the PP equipments of China Coal Yulin Energy & Chemical Company to drive, these devices basically have supporting propylene projects and have little contribution to increase the upstream demand.

However, the commissioning of these projects will inevitably cause pressure on the production and sales of PP companies, which will affect the procurement of raw materials for propylene. Another downstream acrylic acid and esters, domestic production capacity began to grow rapidly since 2012, according to Chinese epoxy network experts, production capacity growth in the past two years is significant, in 2014 the capacity is a significant leap, and is facing a period of concentrated release of production capacity, The contradiction between supply and demand in the later period will be further highlighted. The prices of acrylic acid and esters dropped by 28.42% and 20.13% respectively in the first half of the year, becoming the largest drop in the propylene industry chain. Butyl acrylate even fell to mid-June 2012.

According to experts, the overall prosperity of acrylic acid and esters has declined significantly, and the outlook is not optimistic. It is difficult to effectively digest propylene production capacity in the second half of the year. Propylene oxide has a margin of profit, resulting in new production capacity rushing into the market, and the market is gradually showing a surplus. The supply-demand pattern is expected to make the market pessimistic about the market in the second half of the year, or reduce the operating rate, thereby reducing the purchase of raw materials. At the same time, foreign products are also eyeing the influx into the domestic market. From the import data, from January to May, China's propylene imports exceeded 1.29 million tons, hitting a record high and increasing by 14.54% over the same period of last year, which also put pressure on the domestic propylene market.