In September, the Asian propylene market saw a relatively concentrated round of plant maintenance on the supply side. Multiple PDH, cracker, and FCC units in China, South Korea, and Japan were shut down or reduced loads successively, with some units' maintenance schedules concentrated in mid-to-late September.
Meanwhile, crude oil prices remained at high levels. On September 21, Brent crude oil briefly rose above $103/barrel, and Asian petrochemical raw material costs continued to face pressure.
Multiple Propylene Units Shut Down in Concentrated September Maintenance
Since the start of September, multiple propylene-related units in Asia have been shut down, with some units' maintenance timelines still undetermined.
| Company | Country/Region | Unit | Propylene Capacity | Status | Time |
|---|---|---|---|---|---|
| Lihuayi Weiyuan | China | PDH | 600,000 tons/year | Operating at approximately 75% load in September | September |
| Lihuayi | China | MTO | 220,000 tons/year | Shut down | September 11 |
| Hyosung | South Korea | PDH No. 2 | 300,000 tons/year | Shut down for maintenance | September 15 |
| ENEOS | Japan | Mizushima FCC | 90,000 tons/year | Shut down for maintenance | September 15 |
| Zhenhua Petrochemical | China | PDH | 750,000 tons/year | Shut down | September 17 |
| Idemitsu Kosan | Japan | Tokuyama Cracker | 255,000 tons/year | Shut down for maintenance | September 18 |
| CPC | Taiwan, China | No. 3 Cracker | 384,000 tons/year | Reduced to approximately 70% load | September 18 |
Among these, Hyosung, Zhenhua Petrochemical, and Idemitsu Kosan's units entered shutdown for maintenance consecutively from September 15 to 18, with a relatively concentrated timeframe.
In addition, CNOOC and Shell Huizhou Petrochemical's cracker is currently operating at approximately 80% load, while Fuzhou United Petrochemical, Fujian Meide Petrochemical, and other PDH units are also operating at approximately 75% load in September.
The September Asian propylene market is not simply experiencing short-term maintenance at a few units, but rather shutdowns, load reductions, and long-term exits occurring simultaneously.
South Korea's situation is particularly noteworthy. YNCC's two cracker units, corresponding to approximately 240,000 tons/year of propylene capacity, have been shut down since the end of August, and the South Korean government is pushing to reduce naphtha cracker capacity.
This means that the Asian propylene supply side is currently facing not only traditional autumn maintenance but also partial cracker capacity adjustments.
Propylene Supply Tightens, Prices Rise
Since the start of September, multiple propylene units in Asia have been successively shut down for maintenance or reduced loads, and supply-side tightening has pushed propylene prices up to near multi-year highs.
Meanwhile, feedstock prices such as propane and naphtha are also rising. Increased raw material costs are further squeezing production margins for PDH and cracker units, and some PP producers have already reduced unit loads or even shut down.
PP is the largest downstream product of propylene, and propylene oxide, acrylonitrile, acrylic acid, isopropanol, and other products are also affected by rising propylene prices. With no significant improvement in end-user demand, the pressure of high-priced propylene on downstream margins is becoming more evident.
With multiple units under maintenance and raw material prices rising, the tight supply situation in the Asian propylene market continues.
