News and Articles

In March 2024, the propylene prices in China experienced significant volatility, starting with a supply-side squeeze due to the shutdown of multiple production units. This initial decrease in production led to a temporary tightening of supply and contributed to a short-lived increase in propylene prices. However, the price trajectory was wobbly and eventually fell.

As the month progressed, these affected production units began to gradually resume operations. This shift brought the market from a state of scarcity to surfeit by mid-month. The resulting oversupply pushed prices downward, further aggravated by by a simultaneous decline in demand.

On the demand side, March saw a greater decline in the consumption of downstream derivatives such as 2-EH and isobutyraldehyde. This slump was primarily driven by weakened demand in the main downstream market of polypropylene, which also displayed high volatility and only average buying enthusiasm.

By the end of March, despite the overall oversupply, prices saw a slight rebound as downstream investors sought to capitalize on lower prices, purchasing dips in the market. However, the outlook for April remains cautious. With the potential restart of additional propylene units and the introduction of new production capacity, supply is expected to increase further. While there are plans to restart some downstream maintenance equipment, which might provide a modest boost to demand, the market is likely to continue facing an oversupply situation. Consequently, the overall expectation is that the price of propylene will continue to experience downward pressure in the coming month.

Read More About Propylene Production Cost Reports - Get Free Sample Copy in PDF

According to Procurement Resource, China's propylene prices faced volatility in March 2024 with initial shortages due to production shutdowns causing a brief price surge. However, as operations resumed, an oversupply emerged, driving prices down amid weak demand for downstream derivatives like 2-EH and isobutyraldehyde. However, prices saw an upturn in the last week of March 2024 amidst positive demand outlook.