Propylene prices in parts of Asia softened last week as a wave of new supply weighed against lackluster downstream demand. FOB Japan pricing eased to USD 740–750/mt (down USD 5/mt), while Taiwan’s CFR pricing dropped more sharply to USD 775–785/mt (down USD 15/mt). Prices in China’s CFR market also edged lower to USD 765–775/mt, again slipping by USD 5/mt week on week.
A regional industry source attributed the dovish shift to rising inventories following the commissioning of key facilities. “Increased output from newly functioning plants has led to greater availability, putting downward pressure on prices,” they said. With supply outpacing demand, sellers are reducing prices to move volumes, making further declines likely if demand doesn’t pick up or production isn’t adjusted.
Meanwhile, in Southeast Asia, specifically the ASEAN region, prices held steady at USD 730–740/mt on CFR terms and USD 735–745/mt FOB Korea, suggesting a broadly quiet spot market. Low purchasing appetite and a cancelled tender for late-July shipments signal weak demand sentiment and reluctance from buyers to commit.
In China, oversupply pressures intensified further. The restart of Zhenhua Petrochemical’s 750,000 mt/year PDH unit, coupled with increased volumes from Jingbo after its downstream PP closure, has swelled domestic inventories. With downstream demand persistently tepid – each Shinandong-area converter maintaining lean stocks and reducing orders, pricing has come under continuous pressure.
In summary, Asia’s propylene market remains firmly supply-driven. While spot levels are softening in Northeast Asia, Southeast Asia remains largely stable in anticipation of more definitive demand signals. Without shifts in consumption or production cycles, the current downward bias appears likely to extend into the near term.
