Propylene prices ease in Asia

Last week, propylene prices dropped in the Asian region.

An industry source in Asia, requesting to remain unidentified, informed a Polymerupdate team member, "Asian propylene prices fell, pressured by increasing regional supply and ongoing weakness in the downstream polypropylene market. Market participants noted a rise in supply from both local manufacturers and import sources, while demand stayed weak because of slow operating rates at polypropylene facilities. The negative outlook in the derivative market further reduced buying interest, leading sellers to cut prices in a bid to encourage trading. Lacking any immediate indications of demand recovery, the propylene market continued to experience downward pressure.”

The source added, " The downstream polypropylene (PP) market exhibited signs of weakness, influenced by sluggish demand from end-users and a surplus of supply. Purchasers stayed wary due to declining feedstock prices and the absence of obvious indicators of recovery in major consuming industries like packaging, automotive, and home goods. Reported inventory levels at manufacturers and suppliers were deemed adequate, which lessened the urgency in purchasing. Consequently, spot prices decreased, with the overall regional market sentiment staying pessimistic.”

On Friday, FOB Japan propylene prices were assessed at the USD 735-745/mt levels while CFR Taiwan propylene prices were assessed at the USD 765-775/mt levels, both lower by USD (-5/mt) from the previous week.

CFR China propylene prices were assessed at the USD 760-770/mt levels, a week on week decline of USD (-5/mt).

The propylene industry chain's performance and profit margins for downstream products indicated a gradual rebound in July. Nonetheless, because of various factors, the propylene market maintained its declining trajectory this month. In particular, although the operating rate of the propylene industry for the full sample stayed fairly high at above 70%, total profit margins still shrank because of falling market prices. The decrease in propylene prices has objectively opened an opportunity for profit recovery for downstream products like propylene oxide (PO), and this price transmission effect has successfully encouraged a rebound in demand further down the industry chain.

CFR Southeast Asia propylene prices were assessed at the 725-735/mt levels, a decrease of USD (-5/mt) from the previous week. FOB Korea propylene prices were assessed at the USD 725-735/mt levels, a week on week decrease of USD (-10/mt).

In plant news, Tianjin Bohai Chemical Group has shut down its propane dehydrogenation (PDH) plant on July 29, 2025 for maintenance. The plant is expected to remain offline until August 16, 2025.
Located in Tianjin, China, the plant has a propylene production capacity of 600,000 mt/year.

In other plant news, Quanzhou Grand Pacific Chemical has shut down its propane dehydrogenation (PDH) unit around July 28, 2025. Further details on the duration of the shutdown could not be ascertained. Located in Quanzhou, Fujian in China, the PDH unit has a propylene production capacity of 660,000 mt/year.