Asian propylene prices surge as tightening supply and Middle East tensions drive costs higher

Last week, propylene prices in Asia spiked due to constrained supply caused by escalating energy costs and supply disruptions in the Strait of Hormuz."

An industry source in Asia informed a Polymerupdate team member, “Asian propylene prices surged sharply due to tightening regional availability and rising upstream costs. The increase in crude oil and naphtha prices has driven up production costs, prompting suppliers across the region to raise their offer levels. Market participants also highlighted the ongoing tensions in West Asia, which have disrupted shipping through key energy trade routes and introduced uncertainty regarding feedstock movements. Recent developments in the conflict have kept energy markets volatile, further supporting the strong upward trend in propylene prices across Asia.”

CFR South East Asia propylene prices were assessed at USD 1065–1075/mt levels, a week-on-week spike of USD (+225/mt).

FOB Korea propylene prices were assessed at USD 1105–1115/mt levels, steeply higher by USD (+230/mt) from the previous week.

CFR China propylene prices were assessed at USD 1135–1145/mt levels, a week-on-week surge of USD (+220/mt).

CFR Taiwan propylene prices were assessed at USD 1110–1120/mt levels, sharply increased by USD (+220/mt) from the previous week.

Since the onset of the conflict, propylene prices in Asia have surged sharply, rising by approximately USD 305–315/mt. This increase has been primarily driven by tighter product availability, higher upstream energy and feedstock costs, and ongoing uncertainty regarding shipping and logistics across the region.