[Propylene]: Morning Market Update for Propylene (September 17, 2026)

I. Key Focus Points

1. International Crude Oil Prices Declined: On Wednesday (September 16), the NYMEX WTI crude oil futures contract for October delivery fell by USD 3.40/barrel to close at 102.43, a week-on-week change of -3.21%. The ICE Brent crude oil futures contract for November delivery dropped by USD 2.92/barrel to 105.83, a week-on-week change of -2.69%. China's INE crude oil futures contract 2611 rose by CNY 2.2 to CNY 838.4/barrel during the day session but fell by CNY 33.6 to CNY 804.8/barrel in the night session.
2. Propylene Production Costs: As of September 15, the cost of producing propylene via naphtha cracking was approximately CNY 9,378/ton; via PDH (Propane Dehydrogenation) it was approximately CNY 8,311/ton; and via methanol-to-olefins (MTO) using externally sourced methanol, it was approximately CNY 11,312/ton.
3. Price Spread Narrowing: As of September 16, the spot price of propylene in Shandong was CNY 9,810/ton, while Polypropylene (PP) powder (Linyi 045 grade) was priced at CNY 9,930/ton, resulting in a narrow spread between the two.
4. Plant Shutdown: Zhenhua Petroleum’s 750,000 tons/year PDH unit shut down on September 17, with an estimated downtime of around 40 days.

Core Logic: International crude oil prices are falling, production costs are fluctuating within a narrow range, and the price spread between PP and propylene remains tight.

II. Price Table

III. Market Outlook

Although the shutdown of several large-scale PDH units has led to a slight contraction in overall supply, downward pressure on international crude oil prices combined with slowing downstream procurement activity is weighing on market sentiment. Today, propylene market prices are expected to remain stable, though there is a possibility of a weak consolidation trend.

IV. Data Calendar