[Propylene]: Weekly Market Outlook

I. Key Focus Areas

1. Rising International Crude Oil Prices: On Friday (October 23), NYMEX WTI crude oil futures for the December contract rose by USD 3.80/bbl to USD 103.27, a week-on-week increase of +3.82%. ICE Brent crude oil futures for the December contract rose by USD 3.55/bbl to USD 116.72, a week-on-week increase of +3.14%. China INE crude oil futures for the December 2026 contract rose by CNY 15 to CNY 717/bbl during the day session and increased by CNY 27.4 to CNY 744.4/bbl during the night session.
2. Propylene Production Costs: As of October 22, the cost of propylene production via naphtha cracking was approximately CNY 9,707/ton; via PDH (Propane Dehydrogenation) it was approximately CNY 10,306/ton; and via external methanol sourcing, it was approximately CNY 11,844/ton.
3. Market Price Spread: As of October 23, the Shandong propylene market price stood at CNY 10,760/ton, while Polypropylene (PP) powder (Linyi 045 grade) was priced at CNY 10,700/ton, resulting in a narrow price spread between the two.

Core Logic: Rising international crude oil prices, minor fluctuations in production costs, and a narrow price spread between PP and propylene.

II. Price Table

Notes:

1. This table selects mainstream transaction prices from key propylene markets. All prices are VAT-inclusive, denominated in CNY/ton.
2. The prices represent point-in-time data from the two preceding working weeks prior to this report, not weekly averages.
3. The change rate reflects the week-on-week variation.

III. Data Table

Notes:

1. Daily output data compares national sample enterprise daily production over the past two working weeks.
2. Capacity utilization reflects the ratio of actual production volume to installed capacity, serving as an indicator of production activity.
3. Production profit is industry-wide data reflecting the overall profitability in major regions, calculated as the ratio of industry profit to average price.