Asian propylene hits 9-month high amid tight supply, firm feedstocks, plant shutdowns

Asian propylene prices have risen to levels not seen in about nine months amid rising propane prices, several plant shutdowns in Northeast Asia, and an uptick in downstream demand ahead of the Lunar New Year holidays, market participants told Platts, part of S&P Global Energy.

The Platts-assessed CFR China marker has hovered around $820/metric ton over Jan. 26-27, the highest since April 25, 2025, when levels stood at $825/mt.

In feedstocks, the propane refrigerated CFR North Asia 30-60 days price hit $570/mt on Jan. 27, up $60.75/mt since the start of November 2025, as winter set in across the Northern Hemisphere.

Several market sources in China, South Korea, and Taiwan said supply tightness was a key factor for rising propane prices, after several production units were shut down across Northeast Asia, including China.

A South Korean producer said, "Propane dehydrogenation units' operating rates have declined even further due to another surge in LPG prices caused by cold weather in the US. At the same time, several PDH units have experienced shutdowns or load reductions, and overall sentiment has been supported by strength in China's equity market and firm commodity prices."

The producer also said that some PDH and methanol-to-olefins plants were recently shut on short notice, some unexpectedly, further tightening supply.

"Polypropylene inventories remained low at the end of last year, leading to stocking demand at the beginning of this year," the producer added.

Separately, both traders and producers in China said polypropylene demand from end-users had increased in January.

A Chinese PDH producer said the propylene price rise was also linked to "shortages in Japan and South Korea, and increased demand in China." A Taiwanese producer said tight supply was also linked to shutdowns in Taiwan, with CPC extending the maintenance shutdown of its 80,000-b/d residue fluid catalytic cracker at its Dalin refinery to end-January, as reported by Platts Jan. 21.

Among the units shut in China is Wanhua Chemical's 900,000 mt/year propane dehydrogenation plant at Yantai, Shandong province, which was shut unexpectedly on Jan. 13, Platts reported Jan. 15. The plant had not yet restarted at the time of writing, but a source at the company said on Jan. 28 that it would likely restart by the end of January.

"Concerns about future supply reductions due to petrochemical rationalization in the region could also be a factor in the strength," said another South Korean producer, adding that the "market is expected to change depending on the market conditions for derivatives after the Chinese Lunar New Year."