SupplyThursday, 25 June 2026·India
Asia Propylene: Price Decline Accelerates as Weak Feedstocks and Rising Supply Pressure Market
Asian propylene markets extended their losing streak to eleven consecutive weeks, with prices coming under heavier pressure as crude oil, naphtha and propane values continued to fall. The recent collapse in energy markets has intensified bearish sentiment across the olefins chain, leading to sharper corrections in both Northeast and Southeast Asia.
Unlike ethylene, which experienced a steep correction earlier in the year, propylene prices had declined at a more gradual pace. However, the latest downturn has significantly narrowed the premium between propylene and ethylene as market fundamentals move closer to balance.
Propylene Market Snapshot
Northeast Asia (CFR China)
Latest Price: $960/ton
Weekly Change: ▼ $30/ton
Bid Range: $900-930/ton
Offer Range: $1,030-1,050/ton
Southeast Asia (CFR SEA)
Latest Price: $970/ton
Weekly Change: ▼ $40/ton
Bid Range: $900-930/ton
Offer Range: $1,030-1,050/ton
The price gap between Southeast Asia and Northeast Asia narrowed to just $10/ton during the week following steeper declines in Southeast Asian markets.
Southeast Asia Faces Additional Supply Pressure
Propylene prices in Southeast Asia have fallen around 35% from the highs recorded in early April. Lower feedstock costs, weaker downstream demand and growing regional availability have continued to weigh on market sentiment.
The restart of major Malaysian producer PRefChem has added further pressure to the market. As one of the region’s largest olefins suppliers, its return has increased spot availability at a time when demand remains subdued.
Several July cargoes have already been offered into the market, while additional volumes are expected to emerge in the coming weeks. Supply may rise further as Petronas prepares to restart its No. 2 Kertih cracker by the end of June.
Despite the recent correction, market participants still view propylene fundamentals as relatively tighter than ethylene because global steam crackers produce significantly more ethylene than propylene.
Northeast Asia Extends Downtrend
Northeast Asian propylene prices also moved lower for an eleventh consecutive week, with values now roughly 31% below the peak seen in April.
Chinese domestic supply has increased following the restart of additional PDH units, while higher operating rates in South Korea have also contributed to greater regional availability.
During the week, Sinopec reduced domestic propylene prices by CNY600/ton, while spot prices in East China and Shandong dropped by CNY550-650/ton amid weaker market conditions.
Although several Japanese maintenance shutdowns continue to restrict some supply, the broader market remains well supplied, preventing any meaningful recovery in prices.
Major Plant Updates
Current Maintenance & Shutdowns
ENEOS Kawasaki (Japan): Restart expected in late June
Mitsubishi Chemical Kashima (Japan): Restart expected in mid-July
Mitsui Chemicals Chiba (Japan): Under scheduled two-month turnaround
ENEOS Kashima RFCC (Japan): Offline, restart date not confirmed
Planned Maintenance
ENEOS Mizushima RFCC (Japan): Shutdown scheduled from September
Idemitsu Kosan Tokuyama RFCC (Japan): Planned maintenance from September to November
Outlook
The propylene market remains under pressure from falling energy costs, increasing regional supply and weak downstream demand. While maintenance outages continue to provide some support, the restart of major crackers and improving availability are expected to keep sentiment bearish in the near term. Market participants will continue monitoring feedstock movements and operating rates for signs of stabilization.
Stay ahead of market trends with the Credco app. For any queries, please reach out via WhatsApp at +91 8448083211.
Unlike ethylene, which experienced a steep correction earlier in the year, propylene prices had declined at a more gradual pace. However, the latest downturn has significantly narrowed the premium between propylene and ethylene as market fundamentals move closer to balance.
Propylene Market Snapshot
Northeast Asia (CFR China)
Latest Price: $960/ton
Weekly Change: ▼ $30/ton
Bid Range: $900-930/ton
Offer Range: $1,030-1,050/ton
Southeast Asia (CFR SEA)
Latest Price: $970/ton
Weekly Change: ▼ $40/ton
Bid Range: $900-930/ton
Offer Range: $1,030-1,050/ton
The price gap between Southeast Asia and Northeast Asia narrowed to just $10/ton during the week following steeper declines in Southeast Asian markets.
Southeast Asia Faces Additional Supply Pressure
Propylene prices in Southeast Asia have fallen around 35% from the highs recorded in early April. Lower feedstock costs, weaker downstream demand and growing regional availability have continued to weigh on market sentiment.
The restart of major Malaysian producer PRefChem has added further pressure to the market. As one of the region’s largest olefins suppliers, its return has increased spot availability at a time when demand remains subdued.
Several July cargoes have already been offered into the market, while additional volumes are expected to emerge in the coming weeks. Supply may rise further as Petronas prepares to restart its No. 2 Kertih cracker by the end of June.
Despite the recent correction, market participants still view propylene fundamentals as relatively tighter than ethylene because global steam crackers produce significantly more ethylene than propylene.
Northeast Asia Extends Downtrend
Northeast Asian propylene prices also moved lower for an eleventh consecutive week, with values now roughly 31% below the peak seen in April.
Chinese domestic supply has increased following the restart of additional PDH units, while higher operating rates in South Korea have also contributed to greater regional availability.
During the week, Sinopec reduced domestic propylene prices by CNY600/ton, while spot prices in East China and Shandong dropped by CNY550-650/ton amid weaker market conditions.
Although several Japanese maintenance shutdowns continue to restrict some supply, the broader market remains well supplied, preventing any meaningful recovery in prices.
Major Plant Updates
Current Maintenance & Shutdowns
ENEOS Kawasaki (Japan): Restart expected in late June
Mitsubishi Chemical Kashima (Japan): Restart expected in mid-July
Mitsui Chemicals Chiba (Japan): Under scheduled two-month turnaround
ENEOS Kashima RFCC (Japan): Offline, restart date not confirmed
Planned Maintenance
ENEOS Mizushima RFCC (Japan): Shutdown scheduled from September
Idemitsu Kosan Tokuyama RFCC (Japan): Planned maintenance from September to November
Outlook
The propylene market remains under pressure from falling energy costs, increasing regional supply and weak downstream demand. While maintenance outages continue to provide some support, the restart of major crackers and improving availability are expected to keep sentiment bearish in the near term. Market participants will continue monitoring feedstock movements and operating rates for signs of stabilization.
Stay ahead of market trends with the Credco app. For any queries, please reach out via WhatsApp at +91 8448083211.
