Profits from downstream products of propylene
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As the largest downstream market for propylene, the polypropylene market remained profitable in 2015. Especially since September, the price of propylene has dropped to record lows, resulting in a significant reduction in the cost of polypropylene ； Although the price of polypropylene also dropped, the decline was minor, resulting in a significant increase in profits.
Since September, the average profit for polypropylene powder in Shandong region has been around 1,529 yuan per ton. Good profits have also boosted the enthusiasm of polypropylene powder manufacturers to keep their plants operating, and currently, polypropylene production facilities are operating at high levels.
Since the beginning of this year, and especially in late September, as the price of propylene plummeted, profits for most downstream industries have shown a significant increase. While it can be argued that, as propylene serves as the main raw material, a drop in its price will inevitably lead to lower costs downstream, and it is reasonable to expect an increase in profits as well. But what is unusual is that, as the main raw material, the price of propylene has plummeted, while the prices of most downstream products have fallen relatively less; this issue requires further consideration.
It seems different from what I know; are the profits on polypropylene powder really that high? Key downstream products of propylene, such as acrylonitrile, butyl octyl alcohol, phenol propionate, and acrylic acid, are currently operating at a loss; only propylene oxide and isopropanol may still be profitable.
It is indeed true that the average profit on polypropylene powder in Shandong region has been high recently.
Methionine is the real beneficiary!