According to the Commodity Analysis System of Business Society, the market price of isooctanol in Shandong fluctuated and fell in January. The price of isooctanol decreased from 12950 yuan/ton at the beginning of the month to 12350 yuan/ton at the end of the month, a decrease of 4.63%, and the price at the end of the month increased by 15.78% year-on-year.

On January 31, the isooctanol commodity index was 90.81, unchanged from yesterday, a decrease of 33.96% from the highest point in the cycle of 137.50 points (2021-08-08), and an increase of 158.35% from the lowest point of 35.15 points on February 1, 2016. (Note: The cycle refers to the period from September 1st, 2011 to present)

From the supply side perspective, the mainstream ex factory prices of Shandong isooctanol have dropped significantly this month, with average inventory levels.

Cost side: Propylene market falls first and then rises

In January, the domestic propylene market stopped falling and rose. At the beginning of the month, propylene inventories were high, and in order to stimulate sales, prices were lowered and inventory was released. Effectively stimulating downstream procurement efforts, propylene takes advantage of the situation to drive up prices. In the middle of the month, some propylene units experienced a decrease in production due to inverted profits, resulting in a tightening of the supply side and a stable demand side. As a result, propylene continued to rise. Subsequently, it rose to a high level, leading to a narrowing of the price difference with downstream polypropylene and suppressing downstream demand, resulting in a slight correction at the end of the month. The upstream market fluctuated widely and rose, with average cost support, which had a positive impact on the price of isooctanol.

Demand side: DOP market slightly declines

In January, the DOP market price slightly decreased, and market transactions were light. The price of DOP decreased from 12091.67 yuan/ton at the beginning of the month to 11770 yuan/ton at the end of the month, a decrease of 2.66%, and the price at the end of the month increased by 9.90% year-on-year. The downstream market has slightly declined, and the purchasing enthusiasm of downstream customers for isooctanol has weakened.

Looking at the future market: In mid to early February, the Shandong isooctanol market may experience a slight fluctuation and decline, with consolidation being the main trend. Upstream propylene prices have shown a downward trend at the end of the month, with insufficient cost support. The downstream DOP market has recently experienced a slight decline, and downstream manufacturers have weakened their enthusiasm for purchasing isooctanol. Analysts from Shengyishe Isooctanol believe that in the short term, the Shandong Isooctanol market may experience slight fluctuations and declines due to various factors such as supply and demand, as well as raw materials.