Gas & Petrochemicals
Propylene
Propylene is used principally in polypropylene and other chemical derivatives, with polymer-grade, chemical-grade and refinery-grade markets.
MARKET REFERENCES
How the market commonly references price
There is rarely one universal price for a physical commodity. Commercial value depends on the benchmark, specification, origin, destination, timing and logistics agreed between buyer and seller.
- ICIS CFR Northeast Asia / Southeast Asia
- CFR China and FOB regional assessments
- Europe FD NWE monthly contract references
TYPICAL COMMERCIAL STRUCTURE
How physical pricing is often built
Spot trades are commonly negotiated as the regional CFR/FOB assessment ± grade, timing and location differential. Contract markets may reference published monthly settlements or agreed formulas.
PRICE DRIVERS
What moves the physical differential?
- Polypropylene demand
- Steam cracker / PDH operating rates
- Refinery output
- Grade
- Regional freight
PHYSICAL TRADE
Commercial considerations
Commercial terms depend strongly on grade and region; parcel sizes and refrigerated gas logistics also affect economics.
The examples on this page describe common market conventions at a high level. Actual contracts can use different pricing periods, assessments, quality adjustments, Incoterms and negotiated differentials.
Market methodology reference: view source / methodology
PHYSICAL COMMODITY BROKERAGE
Discuss a Propylene requirement.
Share the specification, quantity, origin or destination, delivery basis and timing.