Propylene Prices, Chart, Trend, Market & Analysis | ChemAnalyst

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Propylene Pricing Overview
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Market Overview Asia Propylene supply across
Asia was observed getting tighter by the end of
the Q3 with price discussions gradually picking
up particularly in northeast Asia. Various
planned and unplanned outages affected the
functioning of fluid catalytic cracking (FCC) and
steam cracking Naphtha units in Japan. Strong
domestic demand in South Korea restricted the
cargo availability for exports. Demand in China
was more or less stable with buyers indicating
the commissioning of two Propane Dehydrogenation
(PDH) units in July possessing a total nameplate
capacity of 1050 KTPA. Formosa Petrochemical
Corporation (FPCC) announced maintenance shutdown
of its No. 3 cracker located in Taiwan on August
11 for nearly 1.5 months. The cracker has
Propylene production capacity of 600 KTPA. In
addition, Yeochun NCC (YNCC) and SK Global
Chemical were heard starting turnarounds for
their crackers from August to October. With
producers highlighting tight regional supply, CFR
China Propylene prices were assessed at the USD
900 per tonne levels in mid-September. Demand for
Propylene Derivatives was seen gaining strength
by the end of into Q3. For more info
https//www.chemanalyst.com/Pricing-data/propylene
-51 Europe The third quarter Propylene prices
were settled at a narrow range with the demand
outlook largely mixed-to-low owing to fragile
economic conditions. Prompt availability of the
product was affected largely by unexpected
cracker turnarounds in early-August which were
resolved by the first half of September. The
ongoing outage at Borealis Stenungsund, Sweden
cracker further exacerbated the shortness in
product availability. The pricing graph last
showed an upward trajectory in July when it was
assessed around USD 780 per tonne FD NWE and then
gradually tapered off by the end of the quarter.
While refineries continued to run at reduced
rates, primary driver Naphtha was on a slightly
lower edge in August compared to July. Some
players reported lackluster demand for Propylene
derivatives while others surging Polypropylene
consumption as the sweet spot.
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Propylene Pricing Overview
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North America Regional Propylene supply was
affected by the prolonged shutdown of BASF
Totals Port Arthur cracker in Texas cracker. Hit
by the pandemic-induced slowdown, the Americas
combined refinery run rate was maintained around
75-80 pc due to depressed gasoline demand,
further limiting the Propylene production. Series
of force majeures declared due to hurricane Laura
led to temporary disruption in the regional
supply. US Gulf Propylene prices showed an uptick
amid production issues and prospects turning
positive as manufacturing activity gradually
picked up during the quarter. The US DEL
(delivered) Polymer-Grade Propylene (PGP)
contract prices were settled at one-year high to
around USD 715 per tonne and Chemical-Grade
Propylene (CGP) was assessed at USD 683 per tonne
in July. How we can help ChemAnalyst addresses
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material availability, supply chain
functionality, disruption in technology and so
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Propylene Pricing Overview
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Methodology ChemAnalyst gathers information
through primary research surveys conducted with
various Propylene manufacturers, spread across
the domestic and international markets, suppliers
and dealers/distributors to gain insights into
value-chains and demand-supply scenario to assess
the market situation. Thorough study of the
companys annual reports and secondary sources
such as exhaustive search on credible paid
databases, including our internal database is
done to verify the information. All the collected
information is analyzed, evaluated and presented
in chronological order to depict a meaningful and
clear picture of the concerned market. Our
dedicated team of industry experts
comprehensively monitors and analyzes various
aspects of the Global Propylene market. The team
analyzes various industrial segments, strategic
viewpoints and provides an analysis of the
industrys performance in the long run. This
would enable our clients in efficiently plan
their future investments, mitigate risk,
understand the cost dynamics and strike out a
balance amidst market volatility. Critical
examination of the impact of COVID-19 pandemic on
the global supply chains and shift in demand
patterns with change in buying behavior of
consumers across the globe. Several ongoing
development projects across industries are
tracked, followed by the details of major
projects in the development stage, which can
positively or negatively influence Global
Propylene market. Pricing is captured through
exhaustive primary interviews with domestic and
international manufacturers, traders and
importers and customers on monthly and yearly
basis. Finally, region-specific markets for
Propylene are analyzed and region-wise demand
pattern is tracked.
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Propylene Pricing Overview
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About Propylene (C3H6), or Propene is a
colorless, three carbon hydrocarbon with a
naturally pungent smell. At room temperature,
Propylene exists as an extremely flammable gas
which becomes a liquid under pressure. It is the
key chemical building block for a wide range of
chemicals and petrochemicals after Ethylene.
There are three grades of propylene- polymer
grade (having minimum purity of 99.5 per cent),
chemical grade (having minimum purity of 93-94
per cent), and refinery grade (with a purity of
around 60-70 per cent). More than half of the
Propylene consumed globally is used for the
production of polypropylene (PP), a polymer
popularly used for films and packaging
applications and a key material for plastic parts
used across various industries such as the
automotive, textiles and many others. Other
important PP derivatives are Acrylonitrile (ACN),
Propylene Oxide (PO), Oxo-alcohols, Cumene and
Acrylic Acid. The global Propylene industry is
particularly complex because of various methods
of production and variety of end uses it serves.
Propylene is generally produced as a byproduct
from the steam cracking of liquid petrochemical
feedstocks such as naphtha and LPG, and from
residual gases released in fluid catalytic
cracking (FCC) units in refineries. Propylene is
also produced via on-purpose technologies such as
propane dehydrogenation (PDH), hydrodealkylation
(HDA) of toluene, toluene disproportionation
(TDP) and metathesis. Being strongly tied to
several commodity petrochemicals, the overall
Propylene consumption is strongly linked to the
general economic conditions and the expansion of
polymer and petrochemical industries across the
globe.