CrudeThursday, 18 June 2026·India
Asia Propylene: Prices Extend 10-Week Slide as Crude Rout Deepens Market Weakness
Asian propylene prices continued their downward trend for a tenth consecutive week, with values falling across both Southeast Asia and Northeast Asia amid a sharp decline in crude oil prices. The latest drop comes as weaker energy markets, softer feedstock costs and sluggish petrochemical demand continue to pressure the regional market.
Although propylene has been correcting since early April, market participants noted that recent declines have been less severe than those seen during the initial phase of the downturn. Traders said the strong rally triggered by geopolitical tensions earlier this year pushed prices to unsustainable levels, making a correction inevitable. More recently, weak supply-demand fundamentals have become the primary driver of price movements.
Propylene Price Snapshot
CFR China: $1045/ton (▼ $55/ton)
Bid Range: $1020-1030/ton
Offer Range: $1100-1150/ton
CFR Southeast Asia: $1065/ton (▼ $55/ton)
Bid Range: Below $1050/ton
Offer Range: Below $1150/ton
Southeast Asian propylene prices have now fallen by approximately $435/ton from the peak recorded in early April. Market players continue to point to increasing supply from Malaysia's PRefChem as one of the key factors behind the prolonged weakness. The producer has resumed operations at its Pengerang facilities and has been actively offering spot cargoes into the market, adding to regional availability.
The spread between propylene and ethylene widened again during the week. With ethylene trading around $880-895/ton and propylene at $1045-1065/ton, the gap remained near $165-170/ton. Traders noted that propylene generally enjoys tighter supply fundamentals because steam crackers produce significantly more ethylene than propylene.
Market sources reported that PRefChem continued to market several spot cargoes for late-June loading, while Vietnam's Nghi Son Refinery and Petrochemical also offered export volumes into the regional market. Buyer interest remained cautious, with bids slipping below the $1050/ton CFR Southeast Asia mark.
Regional supply is expected to rise further as Petronas prepares to restart its No. 2 Kertih cracker later this month. Meanwhile, some outages continue to provide partial support. Long Son Petrochemical's cracker in Vietnam remains shut, Thailand's Rayong Olefins cracker has yet to announce a restart date, and ExxonMobil's older Singapore cracker remains permanently closed.
In Northeast Asia, propylene prices also extended losses as rising Chinese inventories and increasing production weighed on sentiment. Spot values have now fallen by roughly $315/ton from the highs seen in early April.
Chinese supply continued to grow following the restart of several PDH units. Operating rates among PDH producers climbed further during the week, reaching the highest level since March. Market participants said growing domestic availability has increased pressure on producers, while demand remains relatively weak.
Offers for mixed South Korean and Japanese-origin cargoes were reported at $1100-1150/ton CFR Northeast Asia/China, while bids for July-arrival cargoes fell to around $1020-1030/ton. Domestic spot prices in East China and Shandong also moved lower despite Sinopec maintaining its official propylene pricing.
In Japan, several crackers remain under maintenance, including units operated by ENEOS, Mitsubishi Chemical and Mitsui Chemicals. However, traders believe the impact of these outages has been largely offset by rising Chinese production and weaker regional demand.
Overall, market sentiment remains bearish as lower crude oil prices, increasing supply availability and cautious buying activity continue to weigh on the propylene market across Asia.
Stay ahead of market trends with the Credco app. For any queries, please reach out via WhatsApp at +91 8448083211.
Although propylene has been correcting since early April, market participants noted that recent declines have been less severe than those seen during the initial phase of the downturn. Traders said the strong rally triggered by geopolitical tensions earlier this year pushed prices to unsustainable levels, making a correction inevitable. More recently, weak supply-demand fundamentals have become the primary driver of price movements.
Propylene Price Snapshot
CFR China: $1045/ton (▼ $55/ton)
Bid Range: $1020-1030/ton
Offer Range: $1100-1150/ton
CFR Southeast Asia: $1065/ton (▼ $55/ton)
Bid Range: Below $1050/ton
Offer Range: Below $1150/ton
Southeast Asian propylene prices have now fallen by approximately $435/ton from the peak recorded in early April. Market players continue to point to increasing supply from Malaysia's PRefChem as one of the key factors behind the prolonged weakness. The producer has resumed operations at its Pengerang facilities and has been actively offering spot cargoes into the market, adding to regional availability.
The spread between propylene and ethylene widened again during the week. With ethylene trading around $880-895/ton and propylene at $1045-1065/ton, the gap remained near $165-170/ton. Traders noted that propylene generally enjoys tighter supply fundamentals because steam crackers produce significantly more ethylene than propylene.
Market sources reported that PRefChem continued to market several spot cargoes for late-June loading, while Vietnam's Nghi Son Refinery and Petrochemical also offered export volumes into the regional market. Buyer interest remained cautious, with bids slipping below the $1050/ton CFR Southeast Asia mark.
Regional supply is expected to rise further as Petronas prepares to restart its No. 2 Kertih cracker later this month. Meanwhile, some outages continue to provide partial support. Long Son Petrochemical's cracker in Vietnam remains shut, Thailand's Rayong Olefins cracker has yet to announce a restart date, and ExxonMobil's older Singapore cracker remains permanently closed.
In Northeast Asia, propylene prices also extended losses as rising Chinese inventories and increasing production weighed on sentiment. Spot values have now fallen by roughly $315/ton from the highs seen in early April.
Chinese supply continued to grow following the restart of several PDH units. Operating rates among PDH producers climbed further during the week, reaching the highest level since March. Market participants said growing domestic availability has increased pressure on producers, while demand remains relatively weak.
Offers for mixed South Korean and Japanese-origin cargoes were reported at $1100-1150/ton CFR Northeast Asia/China, while bids for July-arrival cargoes fell to around $1020-1030/ton. Domestic spot prices in East China and Shandong also moved lower despite Sinopec maintaining its official propylene pricing.
In Japan, several crackers remain under maintenance, including units operated by ENEOS, Mitsubishi Chemical and Mitsui Chemicals. However, traders believe the impact of these outages has been largely offset by rising Chinese production and weaker regional demand.
Overall, market sentiment remains bearish as lower crude oil prices, increasing supply availability and cautious buying activity continue to weigh on the propylene market across Asia.
Stay ahead of market trends with the Credco app. For any queries, please reach out via WhatsApp at +91 8448083211.
