Propylene Market

Propylene, an important feedstock for the petrochemicals industry, is used in the production of polypropylene, acrylonitrile, Oxo-alcohols, methyl methacrylate, acrylic acid, acetone, cumene, polygas chemicals, propylene glycol, propylene oxide, isopropyl alcohol, and other products. More than 65% of the propylene is used in the production of polypropylene. Propylene is used in various end-use industries such as medicine, automotive, construction, clothing, solvents, automotive, and others (packaging films, biocide, etc.)

Asia-Pacific is the largest market for polypropylene, closely followed by Europe, and North America. In Asia-Pacific region major emerging economies such as China, India, and Japan are the major consuming markets for propylene. It is anticipated that China will grow its propylene capacity at the fastest pace of any country in the world over the next five years. Currently it is the second-largest producer of propylene, however it is not able to meet its own buoyant domestic demand, resulting in the construction of more capacity. China is expected to make up for almost 70% of the Asian capacity addition and 45% of the global capacity addition in the next five years. As a result of being a by-product of refinery sources, the availability of propylene has been widespread in the past. However, an interesting development in this market has occurred in North America due to the rapid pace of shale gas production where considerable amounts of natural gas from shale and other unconventional sources are being produced, together with accompanying natural gases such as ethane and propane.