【Lead】This week, the overall operation trend of the propylene industrial chain has improved slightly. The supply side remains generally loose, while the comprehensive operating rate index of downstream products has risen. Coupled with the improved profit margins of some downstream products, downstream plants’ acceptance of propylene prices has increased, strengthening the support for propylene demand and providing a certain boost to the propylene market.
This week, domestic propylene market prices rebounded after hitting the bottom, with market supply and demand game as the main feature. The weekly average price of propylene in Shandong this week was 5,738 yuan/ton, a month-on-month decrease of 0.95%; the weekly average price in East China was 5,855 yuan/ton, a month-on-month decrease of 1.01%.
This week, the price trends of the industrial chain were mixed with limited overall fluctuation range. The prices of major raw materials showed differentiated ups and downs with small overall volatility, having a limited impact on propylene costs. The average propylene price fell slightly month-on-month and rebounded after hitting the bottom. Prices of downstream derivatives also had both ups and downs: among them, the price of propylene oxide rose relatively significantly, while the price of acrylic acid fell relatively noticeably. Most downstream plants replenished stocks at low prices.
Industry operating rate edges up with relatively loose supply.
This week, the propylene operating rate reached 79.57%, an increase of 0.97 percentage points from last week. During the week, the PDH units of Haiwei and Juzhengyuan, as well as the MTO unit of Hengtong, underwent maintenance, which had a limited boost to market supply. The propylene industry maintained a loose supply condition, and some units adjusted their operating loads, leading to a slight overall rise in the industry’s operating rate this week.
Downstream Comprehensive Operating Rate Index Rises, Propylene Demand Improves
This week, the comprehensive operating rate index of propylene downstream industries stood at 66.31%, an increase of 0.45 percentage points from last week. Among them, the operating rates of PP powder and acrylonitrile rose relatively significantly, while those of phenol-ketone and acrylic acid declined noticeably. This week, the overall downstream operating rate index increased, driving up the rigid demand for propylene from downstream plants. Additionally, with propylene prices at a low level and profit margins of some downstream products improving, downstream procurement enthusiasm for propylene has risen, providing a slight boost to propylene demand.
Profitability of Downstream Products Improves Slightly, Enhancing Acceptance of Propylene Prices
This week, the profitability of propylene downstream products was mixed. With the propylene price center at a relatively low level, the cost pressure of some downstream products eased. Specifically, PP powder shifted from profit to loss this week, while the profitability of PO (propylene oxide) increased. The loss margin of n-butanol expanded, while that of 2-ethylhexanol, acrylonitrile, and phenol-ketone narrowed. Additionally, the profitability of acrylic acid and propylene-based ECH declined. Overall, the profitability of downstream products improved slightly but moderately, which has enhanced their acceptance of propylene prices.
Post time: Nov-14-2025