In the China domestic propylene market, prices for feedstock naphtha and propane are hovering high and profitability of petrochemical makers is deteriorating. Under such circumstances, several propylene facilities have reduced or suspended production.

In East China, the restart timing is unclear for a propane dehydrogenation (PDH) plant in Jiaxing, where turnaround is conducted for some of its facilities. In addition, another PDH plant in Taixing is scheduled to undergo turnaround shortly. Thus, supply of propylene is perceived to be tight.

On the demand side, margins for most derivatives such as polypropylene (powder grade) are worsening except butyl alcohol. Therefore, some acrylic acid facilities lowered operation rates in November and demand for propylene receded. Supply/demand is not tight up until now.