March 23, 2024 – On March 23, Shandong Huifeng Petrochemical Co., Ltd. announced a new ex-factory price for propylene, raising it by 500 yuan/ton to 9,100 yuan/ton. The company’s 45,000 tons/year catalytic cracking unit is scheduled to shut down on March 27, 2025, while its 60,000 tons/year catalytic cracking unit is operating normally.

Chempricehub Analysis on Propylene – Bull-Bear Score: +1.5
Shandong Huifeng Petrochemical’s increase of the propylene ex-factory price by 500 yuan/ton to 9,100 yuan/ton indicates tight spot supply. The shutdown of part of its catalytic cracking capacity (45,000 tons/year) may reduce market supply, directly supporting spot propylene prices. Combined with propylene futures performance (e.g., the main contract 2605 settlement price at 8,768 yuan/ton and 2606 at 8,542 yuan/ton), the rise in spot prices is expected to support upward momentum in futures. Operational issues at the unit could further intensify supply concerns, boosting bullish sentiment in the futures market. The score is set at +1.5 (moderately bullish), as the price adjustment is significant but not an industry-wide event.