Propylene prices in Asia remained stable on Tuesday, showing resilience in the face of declining energy values. Despite softer crude and feedstock dynamics, regional benchmarks were assessed unchanged, as buying activity stayed subdued and market participants maintained a cautious stance.
A regional trader, speaking on condition of anonymity, noted, “Prices were left unchanged on the back of quiet buying sentiments in the Asian markets.”
CFR China propylene prices held at USD 770–780/mt, while FOB Korea assessments remained flat at USD 735–745/mt—both steady compared to Monday’s levels. The stagnant pricing environment underscores a delicate balance between constrained demand and ample supply across key Northeast Asian hubs.
Adding to the regional supply outlook, Quanzhou Grand Pacific Chemical successfully restarted its propane dehydrogenation (PDH) unit in mid-July following scheduled maintenance that began in early May. The facility, located in Fujian province, China, boasts a nameplate capacity of 660,000 metric tons per year of propylene. The resumption of operations could marginally ease supply constraints, though its immediate market impact remains muted given the prevailing tepid demand.
Strategically, stakeholders should monitor downstream polypropylene and derivative demand trends for signs of recovery, particularly from key end-use sectors in China and Southeast Asia. Until sentiment improves, Asian propylene markets are likely to see limited upward momentum.
