Middle East unrest disrupts the chemical market, propylene prices rise to near seven-year highs.

Entering March, the domestic chemical market ushered in a round of price increases, with propylene becoming the leading variety. Data from Zhuo Chuang Information shows that, taking the propylene price in the Shandong market as an example, the average price has climbed from 6400 yuan/ton on February 28 to 9750 yuan/ton on March 9, with a 52.34% increase in just 10 trading days, reaching a near 7-year high. However, with market sentiment fluctuating, the propylene price fell to 8673 yuan/ton on March 10. Zhuo Chuang Information analyst Zhang Kunkun stated in an interview with reporters that geopolitical tensions have led to limited passage through the Strait of Hormuz, causing prices of upstream raw materials such as crude oil, propane, and methanol to rise, and prices of downstream polypropylene, acrylic acid, and butyl alcohol to increase significantly. Support from production costs and concentrated buying from downstream customers have jointly driven up propylene prices.