Galaxy Futures: Cost-driven push causes propylene to rise rapidly

Cost-side factors are driving propylene prices to rise rapidly, increasing supply risks. Domestic propylene capacity is decreasing, and some domestic manufacturers are passively reducing production. Under generally rising raw material costs, plant losses are widening, leading to more shutdowns and capacity reductions in propylene enterprises. PDH capacity utilization is expected to continue declining. Japan and South Korea also have propylene plants shutting down or reducing capacity, incurring losses. As terminal demand gradually recovers, supply and demand are supported. Continuous attention should be paid to the Middle East situation and the navigation status of the Strait of Hormuz. (Galaxy Futures)