Propylene prices rise in parts of Asia

Last week, propylene prices firmed in parts of Asia while quoting flat in the southeast Asian region.

An industry source in Asia requesting to remain unidentified informed a Polymerupdate team member, "Spot propylene weekly prices gained in Asia owing to supply constraints in China, particularly east China."

The source added, “Nonetheless, spot discussions slowed down with buyers adopting a wait-and-watch stance anticipating an increase in supplies with propane dehydrogenation (PDH) units set to recommence operations. Market participants continued to concentrate on term negotiations for 2025, while awaiting the issuance of sales tenders in the next few weeks in northeast Asia.”

On Friday, FOB Korea propylene prices were assessed at the USD 800-810/mt levels, an increase of USD (+10/mt) from the previous week. CFR Taiwan propylene prices were assessed at the USD 830-840/mt levels, a week on week gained of USD (+5/mt).

In the FOB South Korea spot markets, average price levels gained owing to an expected short supply situation in Q1 2025.

FOB Japan propylene prices were assessed at the USD 780-790/mt levels while CFR China propylene prices were assessed at the USD 840-850/mt levels, both higher by USD (+5/mt) from the previous week.

Meanwhile, CFR Southeast Asia propylene prices on Friday were assessed flat at the 820-830/mt levels.

In plant news, GS Caltex is in plans to operate its No.2 fluid catalytic cracker (FCC) unit at near maximum capacity levels in December 2024. Located in Yeosu, South Korea, the No.2 FCC unit has propylene production capacity of 250,000 mt/year.

In other plant news, Petronas Chemicals Mtbe has been running its propane dehydrogenation (PDH) plant at curtailed capacity levels over November and December 2024. The reason behind the production cut could not be ascertained. Located in Kuantan, Malaysia, the PDH plant has a propylene production capacity of 380,000 mt/year.