Propylene derivative prices to rally upwards across the globe
- 23-Mar-2022 5:02 PM
- Journalist: Yage Kwon
Propylene, one of the widely used feedstock, has several derivatives employed in distinct downstream industries. Polypropylene is the most utilized Propylene derivative primarily used in automotive industries. Propylene oxide, another derivative, finds its usage in mattresses, car seats, and construction chemicals. Simultaneously, Acrylonitrile is a significant constituent in polymers and elastomeric fibres.
The market for Propylene derivatives witnessed a bullish pricing trend in the last few weeks. The prime reason behind this surge is the growing crude oil price trend. The ongoing conflict between Russia and Ukraine are propelling crude oil prices upward, resulting in fuelling Naphtha prices. Consequently, raising Propylene prices and its derivatives as Naphtha is the feed for Propylene. The rising upstream cost involved in Propylene production, in turn, is affecting the supply rate of the same.
Furthermore, several industries have a strong demand for Propylene derivatives due to their vast properties. As the construction sector is in its growing phase globally, and Propylene derivatives are being used widely in constructions, the demand for the same is increasing. Besides, the need for Propylene products also comes from the automotive, textile, and packaging industries. In addition, the increased freight charges on different ports have severely influenced the market prices of various commodities, including propylene and its derivatives. The shortage of shipping cargoes has also supported the price hike of propylene derivatives. Altogether, the Russia-Ukraine conflict and downstream demand are the major factors giving rise to the market price of propylene derivatives globally.
According to ChemAnalyst, “The prices of propylene derivatives would keep surging in the upcoming weeks as the prices of crude oil would keep soaring, consequently escalating the naphtha prices. Moreover, the demand for propylene derivatives is more likely to upsurge due to growing construction industries worldwide.”