Propylene oxide Prices, markets & analysis
ICIS provides independent and unbiased pricing information, news and market analysis for the global Propylene oxide market. Our network of price reporters, based in Asia, Europe and the US, deliver local insight for each of these markets, which is published in our individual weekly and daily price reports.
If you buy or sell Propylene oxide or related products, our reports, news and market intelligence will give you the prices and analysis of the factors driving the prices that you need to make confident commercial decisions.
Our editor gives their expert view
Propylene Oxide Overview Transcript
Propylene oxide or PO is a highly reactive liquid and is an important intermediate in the production of polyether polyols and monopropylene glycol MPG.
PO is produced via three main technologies in Asia: chlorohydrin, POSM or styrene monomer and HPPO or hydrogen peroxide to PO processes.
The Asian market has both spot and contract prices, Japan contract prices take a steer from naphtha contract prices, whereas the South Korea contract and the China spot prices are dependent on a key feedstock: propylene.
Japan contract prices take a steer from naphtha contract prices, whereas the South Korea contract and the China spot prices are dependent on a key feedstock: propylene.
Other raw materials such as chlorine and hydrogen peroxide, are also price-determining factors, dependent upon technology used.
In China, which is both the largest producer and consumer in the world, most PO units use chlorohydrin technology. So fluctuations in the local chlorine prices have a significant impact on Chinese PO prices.
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Propylene oxide news and market information products from ICIS
We offer the following regional Propylene oxide analysis and news coverage to keep you informed of factors and developments affecting prices in the Propylene oxide marketplace.
Price Reporting – More information about the price reports we publish on Propylene oxide
Independent price assessments and market coverage by region
Price History – More information about the historical price data we publish on Propylene oxide
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News & analysis
News & Analysis - News & market analysis specifically relating to Propylene oxide
Breaking news of latest developments affecting the markets.
Insight and analysis of factors driving prices.
Upstream of Propylene oxide
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Propylene oxide: Market overview
Updated to Q4 2014
In Europe, propylene oxide (PO) contracts have thus far been unaffected by Shell closing both its PO and styrene monomer (SM) units at Moerdijk, the Netherlands. However, the European market is now extremely tight and contracts are expected to rise significantly next year. Spot PO prices have been quoted substantially higher in the wake of the closures at Moerdijk and are expected to keep rising, although the spot market is relatively small compared to contract business.
In the US, there are four major producers of PO, with the bulk of their production being captive, thus minimal market information is available. Product usage is typically for integrated downstream operations, such as mono propylene glycol (MPG). The ICIS monthly contract assessment is a calculation based on the price of feedstock propylene. An industrial accident at the PO and SM units in Moerdijk in early June has continued to be a cause of concern in the global markets, including the US.
In China, there is a possibility of increased domestic PO supply in the fourth quarter if a local 100,000 tonne/year plant comes on stream as planned. The ability of a 300,000 tonne/year China-based PO plant to consistently operate its two lines normally and start a third line is also being closely watched by market participants. Many market participants expect the availability of spot imports to China to remain tight amid the turnarounds at a couple of plants in other parts of Asia.
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Propylene oxide news & analysis
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Propylene Oxide Methodology
About Propylene oxide
Propylene oxide (PO) is a very volatile, colourless, flammable liquid with a characteristic ether-like odour. PO reacts violently with chlorine, ammonia, strong oxidants and acids causing fire and explosion hazards.
Propylene oxide is a highly reactive chemical used as an intermediate for the production of numerous commercial materials. The largest derivative of PO is polyether polyols, one of the main components used in the manufacture of polyurethanes. Propylene glycol (PG) is the second largest PO derivative.
Propylene oxide is made traditionally by chlorohydrin or epoxidation routes. The propylene oxide/styrene monomer (PO/SM) epoxidation process had been gaining in popularity due to its superior economics. However, new PO technologies that do not made coproducts have now been commercialised.
General downstream PO sectors include bedding and furniture; construction and automotive.
Upstream of Propylene oxide
Downstream of Propylene oxide