Propylene prices rise marginally in China

Last week, propylene prices gained in China while staying flat in other parts of the Asian region.

An industry source in Asia, requesting to remain unidentified, informed a Polymerupdate team member, “Asian propylene prices have shown stability with a slight upward trend. The market has not experienced significant fluctuations, primarily due to minimal variations in demand and supply fundamentals, which reflect a balanced market condition. Furthermore, there has been limited activity in spot trading discussions, indicating a lack of trading interest or negotiations during this period.”

The source added, “The supply of polypropylene remains relatively plentiful, largely due to increased operations following restart activities in China. Despite the increase in supply, downstream demand has been moderate, suggesting that buyers are not significantly ramping up their purchases. Profit margins for polypropylene have improved, indicating enhanced profitability for producers. Nevertheless, cost pressures continue to affect the market, leading some buyers to opt for lower-priced alternatives to manage their expenses. In summary, the market is characterized by sufficient supply, moderate demand, and a focus on cost efficiency among buyers.”

On Friday, CFR China propylene prices were assessed at the USD 800-810/mt levels, an increase of USD (+5/mt) week on week.

Meanwhile, FOB Korea propylene prices were assessed at the USD 765-775/mt levels, unchanged from the previous week.

CFR Southeast Asia propylene prices were assessed steady at the 815-825/mt levels.

FOB Japan propylene prices were assessed at the USD 770-780/mt levels, rolled over week on week.

CFR Taiwan propylene prices were assessed stable at the USD 805-815/mt levels.

In plant news, Pengerang Refining and Petrochemical (PRefChem) is in plans to bring on stream its cracker in June 2025. The cracker was taken off stream in early February 2025 for maintenance with operations initially scheduled to restart in May 2025. Located in Pengerang, Malaysia, the cracker has an ethylene production capacity of 1.2 million mt/year and propylene production capacity of 609,000 mt/year.

In other plant news, Tianhong Chemical has undertaken a planned shutdown at its propane dehydrogenation (PDH) plant on May 10, 2025 for maintenance. Further details on the duration of the shutdown could not be ascertained. Located in Dongying, Shandong in China, the plant has a propylene production capacity of 450,000 mt/year.