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Home > News > [Propylene]: Weekly Market Outlook

[Propylene]: Weekly Market Outlook

Published on 2026-09-28

I. Key Points

  1. International Crude Oil Prices Declined: On Friday, September 25, the NYMEX WTI crude oil November contract closed at $92.41/bbl, down $2.20/bbl (-2.33% WoW). The ICE Brent crude oil November contract closed at $104.32/bbl, down $2.28/bbl (-2.14% WoW). The INE crude oil futures market in China was closed for the Mid-Autumn Festival holiday.

  2. Propylene Production Costs: As of September 23, the cost of producing propylene via naphtha cracking was approximately CNY 8,876/ton; via PDH (Propane Dehydrogenation) it was approximately CNY 8,640/ton; and via external methanol sourcing for MTP (Methanol-to-Propylene) it was approximately CNY 12,152/ton.

  3. Shandong Market Prices: As of September 24, the spot price of propylene in Shandong was CNY 9,450/ton, while polypropylene powder (Linyi 045 grade) was priced at CNY 9,800/ton, resulting in a narrow spread between the two.

  4. Fujian Meide Shutdown: Fujian Meide’s Phase II 1 million tons/year PDH unit shut down on September 25. The restart time is TBD.

  5. Quanzhou Guoheng Shutdown: Quanzhou Guoheng’s 660,000 tons/year PDH unit shut down on September 25. The restart time is TBD.

Core Logic: Declining international crude oil prices, minor fluctuations in production costs, and a narrow spread between PP and propylene prices.

II. Price Table

Product Region Sep 18 Sep 24 Change Rate
Propylene Shandong 9,650–9,820 9,430–9,470 -3.42%
Propylene East China 9,750–9,800 9,500–9,550 -2.56%
Propylene Northeast China 9,270–9,380 9,030–9,140 -2.57%
Propylene Northwest China 9,290–9,290 9,052–9,052 -2.56%

Notes:

  1. This table reflects mainstream transaction prices in key propylene markets. All prices are VAT-inclusive and denominated in CNY/ton.
  2. The prices listed represent snapshot values from the two preceding working weeks prior to the current week, not weekly averages.
  3. The change rate refers to the Week-on-Week (WoW) percentage change.

III. Data Table

Propylene Industry Supply & Demand Data
Data Type Sep 17 Sep 24 Change Rate Weekly Forecast
Weekly Output 1.1789 million tons 1.1595 million tons -1.65% ↘
Capacity Utilization (PDH) 79.21% 72.37% -8.64% ↘
Production Profit (PDH) CNY 1,504/ton CNY 1,072/ton -28.72% ↘

Notes:

  1. Daily output data compares sample daily production figures across all enterprises nationwide for the two preceding working weeks.
  2. Capacity utilization reflects the ratio of actual production to installed capacity, indicating overall production activity levels.
  3. Production profit represents industry-wide metrics, reflecting the ratio of industry profit to average market prices in major regions.

Comments

0
  • Sarah Mitchell 2026-09-28 20:06
    With major PDH units in Fujian and Quanzhou offline, capacity utilization is dropping. While crude declines ease feedstock costs, the narrowing spread with polypropylene pressures margins. I expect tight supply to suppor..
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