Demand growth of propylene outpacing supplies from steam cracking and refinery sources

01-Jul-15

Propylene is the second most important product of the olefin market, it is predominantly consumed in the production of plastics and in chemicals. Consumed either as Polypropylene, Acrylic acid, Acrylonitrile, Propylene oxide, cumene, oxo-alcohols and epichlorohydrin. Polypropylene is the largest end use for propylene demand, accounting for the majority of its consumption growth. It competes with polyethylene in the films and packaging and competes with other polymers. It is a commodity polymer used in a wide range of end use segments, including packaging, films and in agriculture, construction and automotive applications. The demand growth of propylene has been outpacing supplies from steam cracking and refinery sources, as per Petrochemical Reporter. Propylene pricing has traditionally been lower than ethylene though the situation has become less stable recently, the main driver being US producers switching to lighter feeds. This report analyses the influence of the increasingly lighter feedstocks influence on propylene production. The majority of capacity developments is due to on purpose production particularly methanol to olefins and propane dehydrogenation technology.