Propylene's 7.32% daily surge exacerbates downstream profit crunch

Propylene prices, particularly in Shandong jumped on July 14, with a surge of 7.32% amid cost and supply tailwinds, while all five major downstream derivatives posted deepening daily losses ranging from 27.80% to 235.50%, signaling a severe cost-transmission breakdown.

Shandong propylene prices skyrocketed by 7.32% on July 14, reaching Yuan 8,600–8,840/t, driven by geopolitical cost pressures from Middle East tensions and tightening domestic supply-demand dynamics. While the rally improved producer margins and prompted PDH plant restarts, it inflicted severe profit erosion across all major downstream derivatives. China's Propylene Prices