Regional arbitrage window opens in China's propylene market

Source: Mysteel Aug 13, 2026 09:44

China's propylene market is currently witnessing a notable regional divergence, with Shandong supply rises against East China tightness, creating an arbitrage window between the two regions.

In Shandong, propylene market faced a concentrated supply boost from restarted units, while in East China, the market witnessed tightening availability due to plant shutdowns, typhoon-related logistical disruptions, and reduced imports. Cross-regional cargo reallocation has become increasingly active. Shandong province has emerged as the main source of domestic propylene supply

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