Material Insights · Understanding the Material World

Propylene

The second-largest olefin, made in crackers, refineries and dedicated propane plants, and turned mostly into polypropylene plastic.

Commodity chemicals · Olefins · No. 24

  • Single chemical
  • Feedstock: Oil, gas or coal
  • about 135-140 Mt produced a year (2025, indicative: 188 Mt capacity x about 72-75% utilisation)
  • 1.5 t CO₂e per t
  • HS 290122
Commodity chemicals · Olefins · Foundation · Matter

China built so many propane-to-propylene plants that capacity jumped 25% in four years and margins fell to almost nothing.

Chart: Illustration: Propylene

Where it comes from

Chart: Map of where it comes from

Propylene comes from four sources: naphtha crackers, refinery catalytic crackers, coal or methanol plants and, increasingly, on-purpose propane dehydrogenation.

Three things to know
  1. Capacity rose 25% from about 151 Mt in 2021 to 188 Mt in 2025, driven by Chinese propane dehydrogenation (PDH).
  2. In late 2025 China's PP-propylene spread fell to $75/t, against $250-350/t needed, and PDH plants ran near 70%.
  3. In April-May 2025 China raised tariffs on US propane to 125% before cutting them to 10%, scrambling PDH feed.
The journey
  1. 1 FeedstockNaphtha, refinery gas oil, propane, coal
  2. 2 ProductionCrackers, refinery FCC or PDH plants
  3. 3 PurificationSplit to 99.5% polymer grade
  4. 4 PolymerisationMost turned into polypropylene
  5. 5 ConversionPackaging, sacks, fibres and car parts
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