LPG in World Markets: Rising Propane Weighs on PDH Margins
This current feature was extracted from the latest edition of Poten’s LPG in World Markets, a monthly service published on October 6, 2023.
PDH margins came under further pressure in September due to rising propane prices, forcing Chinese PDH operators to reduce operating rates. The average Far East propane price in September increased 10% to roughly $695/t, while the month-over-month increase in the Chinese domestic propane price was higher. Average propylene and polypropylene prices in the region rose 4% – not enough to offset the increase in feedstock prices.
Chinese PDH plant operators gradually reduced average plant run rates after hitting a 2023 peak of about 85% in the second week of August. By the third week of September, average run rates fell to 65%, according to OilChem.
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