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1. Today's Summary

① The FOB Korea closing price was USD 1,360/ton, and the China closing price converted to RMB was 11,431 yuan/ton.

② Driven by rising costs, domestic PP powder producers raised their quotes by 500–650 yuan/ton. As prices surged rapidly, market sentiment shifted toward wait-and-see; offers remained firm but transaction follow-through was weak, resulting in a "high prices, low volume" scenario with sluggish end-user trading. By midday, mainstream PP powder quotes in East China were 11,950–12,000 yuan/ton, while reference quotes in Shandong stood at 11,700–11,750 yuan/ton.

2. Spot Market Overview

Table 1: Domestic Propylene Price Summary (Unit: Yuan/ton)

On October 30, there were 26 information collection points for propylene in Shandong, with 8 valid samples (excluding long-term contracts). Trading volume was approximately 1,000 tons, with prices ranging from 11,800 to 12,000 yuan/ton and an average of 11,925 yuan/ton.

Chempricehub reported on October 30: Shandong propylene prices continued to rise today. Based on inquiries in certain areas, transactions at lower price levels saw increased volume. The mainstream closing reference range adjusted to 11,850–12,000 yuan/ton, with an average of 11,925 yuan/ton, up 200 yuan/ton from the previous business day. Currently, propylene supply remains tight, and producers have strong incentives to push prices higher. However, downstream resistance is growing, buyer follow-up has slowed, and trading activity has become more subdued compared to yesterday. Some low-price deals are hitting the market, suggesting that prices may pull back over the weekend.

3. Production Dynamics

Propylene capacity utilization stood at 68.85%. PDH margins were 1,175 yuan/ton in East China and 1,550 yuan/ton in Shandong. Naphtha cracking margins were USD 64/ton, while MTO process margins were -1,702 yuan/ton.

4. Price Forecast

Prices have surged to high levels, placing significant cost pressure on downstream users. Transaction follow-up within the market remains weak, and trading sentiment has softened. In the short term, prices are expected to pull back over the weekend.

5. Related Product Status

PP Powder: The Linyi PP powder market rose sharply. Supported by strong cost-side drivers, powder producers maintained firm upward quotes, with spot prices moving toward mid-to-high levels. Grade 040 was quoted around 11,660–11,700 yuan/ton delivered, with cash basis prices at 10,902–10,940 yuan/ton. Grade 225 was referenced at 11,700–11,750 yuan/ton.

Propylene Oxide (PO): Mainstream PO negotiations in the Shandong market were at 12,000 yuan/ton ex-factory (cash basis). Supply-side units remained stable. Since yesterday, as propylene prices hit new highs, market sentiment improved. Operating plants experienced good shipments, raising prices significantly under cost pressure. Shipments maintained momentum today, while downstream users adopted a wait-and-see approach, reflecting a trend where prices find it easier to rise than fall. Most buyers continued purchasing while awaiting feedback from end-users.

n-Octanol: Transactions in the Shandong n-octanol market were referenced at 10,200 yuan/ton today. Sharp increases in feedstock propylene prices drove wider price hikes among n-octanol producers. Core downstream users remained cautious about high-priced n-octanol, with market trades primarily consisting of small-scale orders.

6. Data Calendar

Table 2: Domestic Propylene Data Overview (Unit: 10,000 tons)