MarketsThursday, 21 May 2026·India
Asia Propylene: Losses Extend Into Sixth Week, SEA Prices Down Nearly 20% from April Peak
Asian propylene markets continued to weaken for the sixth consecutive week across Northeast Asia (NEA) and Southeast Asia (SEA), as weak downstream demand and increasing supply expectations from South Korea continued to pressure the market.
Although propylene followed the broader decline seen in ethylene markets, losses remained relatively limited due to tighter supply conditions in China, where several PDH plants remain under maintenance and extended shutdowns through June.
Market players are also closely watching developments around the US-Iran conflict and the ongoing disruption at the Strait of Hormuz, which remains a key route for propane cargoes moving into Asia.
Traders noted that while demand destruction has pulled spot prices lower, restrictions around Hormuz are still preventing a sharp collapse in propylene prices by maintaining pressure on propane feedstock availability.
Southeast Asia Faces Stronger Downward Pressure
Southeast Asian propylene prices fell by another $30/ton this week, taking the total decline over the last two weeks to around $60/ton.
Since reaching nearly $1500/ton CFR SEA in early April, spot prices in the region have dropped by about $290/ton, representing a decline of almost 20%.
Asia Propylene Price Snapshot ($/ton)
CFR China: $1220/ton (Down $15)
Bid Range: $1170-1200 | Offer Range: $1260-1300
CFR SEA: $1210/ton (Down $30)
Bid Range: $1170-1200 | Offer Range: $1260-1300
Despite lower operating rates and multiple cracker shutdowns across Southeast Asia, increasing supply from Northeast Asia, especially South Korea, has continued pressuring regional prices.
South Korean producers have reportedly increased cracker and PDH operating rates due to improved profitability and access to alternative naphtha supplies from Russia and the US.
Meanwhile, lower-priced Chinese-origin cargoes have started entering Southeast Asian markets more aggressively, with some June cargoes offered around $1250-1300/ton CFR SEA.
Buying activity was reported from Indonesian end-users including PT Polytama, PT Petro OXO Nusantara, and PT Nihon Seiki Indonesia after recent offer reductions. Deals for early June delivery were heard concluded around $1210-1220/ton CFR Indonesia.
Regional Shutdowns Continue Supporting Market Floor
Even though prices are moving lower, several plant outages across Southeast Asia are still limiting the downside.
Malaysia’s PRefChem cracker at Pengerang has remained shut since mid-March, while Petronas’ No. 2 Kertih cracker is expected to stay offline through June.
Thailand’s Rayong Olefins cracker has also remained shut since early March, while Vietnam’s Long Son Petrochemical cracker is expected to shut during May because of feedstock shortages linked to the Middle East conflict.
Northeast Asia Declines Remain Smaller
In Northeast Asia and China, spot propylene prices fell by a smaller margin of $15/ton this week.
Since peaking near $1380/ton in early April, NEA prices have declined by roughly $160/ton, or nearly 12%.
Chinese domestic supply remains relatively tight as several PDH plants continue maintenance shutdowns and extended turnarounds through June.
Major facilities including Wanhua Chemical’s Yantai PDH unit and Zhejiang Huahong’s Jiaxing PDH plant remain under maintenance.
Meanwhile, Sinopec kept domestic propylene prices unchanged at CNY9100/ton, while East China and Shandong spot prices also stayed stable around CNY9100-9200/ton.
Offers for South Korean and Japanese cargoes were heard around $1300-1350/ton CFR NEA/China, while buyers’ bids for June cargoes softened to around $1170-1190/ton.
In Taiwan, CPC’s Dalin refinery and Kaohsiung cracker continue facing operational disruptions following recent fire and compressor-related issues, tightening regional supply further.
Overall, market participants expect propylene markets to remain under pressure due to weak demand, although feedstock shortages and regional supply disruptions are likely to prevent any major price collapse in the near term.
Stay ahead of market trends with the Credco app. For any queries, please reach out via WhatsApp at +91 8448083211.
Although propylene followed the broader decline seen in ethylene markets, losses remained relatively limited due to tighter supply conditions in China, where several PDH plants remain under maintenance and extended shutdowns through June.
Market players are also closely watching developments around the US-Iran conflict and the ongoing disruption at the Strait of Hormuz, which remains a key route for propane cargoes moving into Asia.
Traders noted that while demand destruction has pulled spot prices lower, restrictions around Hormuz are still preventing a sharp collapse in propylene prices by maintaining pressure on propane feedstock availability.
Southeast Asia Faces Stronger Downward Pressure
Southeast Asian propylene prices fell by another $30/ton this week, taking the total decline over the last two weeks to around $60/ton.
Since reaching nearly $1500/ton CFR SEA in early April, spot prices in the region have dropped by about $290/ton, representing a decline of almost 20%.
Asia Propylene Price Snapshot ($/ton)
CFR China: $1220/ton (Down $15)
Bid Range: $1170-1200 | Offer Range: $1260-1300
CFR SEA: $1210/ton (Down $30)
Bid Range: $1170-1200 | Offer Range: $1260-1300
Despite lower operating rates and multiple cracker shutdowns across Southeast Asia, increasing supply from Northeast Asia, especially South Korea, has continued pressuring regional prices.
South Korean producers have reportedly increased cracker and PDH operating rates due to improved profitability and access to alternative naphtha supplies from Russia and the US.
Meanwhile, lower-priced Chinese-origin cargoes have started entering Southeast Asian markets more aggressively, with some June cargoes offered around $1250-1300/ton CFR SEA.
Buying activity was reported from Indonesian end-users including PT Polytama, PT Petro OXO Nusantara, and PT Nihon Seiki Indonesia after recent offer reductions. Deals for early June delivery were heard concluded around $1210-1220/ton CFR Indonesia.
Regional Shutdowns Continue Supporting Market Floor
Even though prices are moving lower, several plant outages across Southeast Asia are still limiting the downside.
Malaysia’s PRefChem cracker at Pengerang has remained shut since mid-March, while Petronas’ No. 2 Kertih cracker is expected to stay offline through June.
Thailand’s Rayong Olefins cracker has also remained shut since early March, while Vietnam’s Long Son Petrochemical cracker is expected to shut during May because of feedstock shortages linked to the Middle East conflict.
Northeast Asia Declines Remain Smaller
In Northeast Asia and China, spot propylene prices fell by a smaller margin of $15/ton this week.
Since peaking near $1380/ton in early April, NEA prices have declined by roughly $160/ton, or nearly 12%.
Chinese domestic supply remains relatively tight as several PDH plants continue maintenance shutdowns and extended turnarounds through June.
Major facilities including Wanhua Chemical’s Yantai PDH unit and Zhejiang Huahong’s Jiaxing PDH plant remain under maintenance.
Meanwhile, Sinopec kept domestic propylene prices unchanged at CNY9100/ton, while East China and Shandong spot prices also stayed stable around CNY9100-9200/ton.
Offers for South Korean and Japanese cargoes were heard around $1300-1350/ton CFR NEA/China, while buyers’ bids for June cargoes softened to around $1170-1190/ton.
In Taiwan, CPC’s Dalin refinery and Kaohsiung cracker continue facing operational disruptions following recent fire and compressor-related issues, tightening regional supply further.
Overall, market participants expect propylene markets to remain under pressure due to weak demand, although feedstock shortages and regional supply disruptions are likely to prevent any major price collapse in the near term.
Stay ahead of market trends with the Credco app. For any queries, please reach out via WhatsApp at +91 8448083211.