A Glance of China Oil Market 20260615

Weekly News

PDH restarts to expand supply pressure in propylene market

With an improving global propane trade landscape and lower feedstock prices, producers such as Kingfa (Ningbo) and Bohai Petrochemical will restart their propane dehydrogenation (PDH) units in June-July. The restarts will push the operating rate above 70% and bring sustained supply pressure to propylene market. The combined capacity of PDH units that will resume restarts and have been back online will exceed 4 million t/y. China's PDH operating rate rose to 67.64% this week (June 5-11), up 5.14 percentage points week-on-week. Read Full Story

China sulfur prices hit record high on supply crunch

Against the supply tightness, China's sulfur prices surged to a record high of Yuan 9,600/tonne for mainstream granular product at Zhenjiang port on June 8, with market sentiment suggesting prices could test the Yuan 10,000/t level in the near term, according to OilChem. The relentless rally, which began in late February, has been driven almost entirely by persistent supply-side constraints, upending traditional market expectations that sharp price gains would quickly reverse. Read Full Story

China PE market to face capacity onslaught and demand off-season

With multiple large-scale polyethylene (PE) projects scheduled to begin operations between August and September, domestic supply pressure is set to intensify in the conventional off-peak season, fueling bearish sentiment and raising the likelihood of a downward price correction. A total of 1.90 million t/y new PE capacity is expected to come online in the third quarter of the year, including 1.50 million tonnes of full-density polyethylene (FDPE) and 400,000 tonnes of high-density polyethylene (HDPE). Read Full Story