# Propylene: Feedstocks

Why propane, not naphtha, now sets the cost

Source page: https://www.materialinsights.org/chemicals/propylene/feedstocks/

What this tab covers What it is made from and what it feeds: the raw materials and energy per tonne with their share of cost (linked to the commodity table), who is low-cost and why, and the chemicals made from it.

Propylene is made from naphtha and gas oil (crude oil), propane (natural gas liquids) or coal. For co-product routes, cost depends on the main product; for PDH, cost is propane plus about $150-250/t conversion (indicative). Cheap propane from the US and Gulf, and cheap coal in inner China, set who is competitive.

#### Inputs per tonne

| Input | Quantity per tonne | Role | Share of cost | Source |
|---|---|---|---|---|
| [Gas Natural gas](https://www.materialinsights.org/energy/natural_gas/) | about 1.2 t per t propylene via PDH (indicative) | PDH feed; also cracker feed | about 70-80% of PDH cash cost (indicative) | indicative; S&P Global Dec 2025 for volumes |
| [Oil Crude oil](https://www.materialinsights.org/energy/crude_oil/) | co-product allocation (indicative) | steam cracking and FCC | about 70-80% of cracker cash cost before credits (indicative) | indicative |
| [Tc Thermal coal](https://www.materialinsights.org/energy/thermal_coal/) | about 3 t methanol per t light olefins | CTO/MTO in China | not published | indicative |
| **Platinum or chromium catalysts** | small; Oleflex uses platinum-tin | PDH catalyst | about 1-2% (indicative) | indicative |

#### Who is low-cost, and why

US and Middle East PDH and refinery FCC propylene are lowest cost. Chinese PDH running on imported propane sits mid-to-high on the curve, especially when the propane price is lifted by shipping or tariffs. European and Japanese naphtha crackers are highest cost.

#### Raw materials on the commodity table
[Oil Crude oil](https://www.materialinsights.org/energy/crude_oil/)[Gas Natural gas](https://www.materialinsights.org/energy/natural_gas/)

#### What it is made into

| Product | Note |
|---|---|
| [PP Polypropylene](https://www.materialinsights.org/chemicals/polypropylene/) | about 71% of propylene |
| [PO Propylene oxide](https://www.materialinsights.org/chemicals/propylene_oxide/) | about 8% (indicative) |
| [ACN Acrylonitrile](https://www.materialinsights.org/chemicals/acrylonitrile/) | about 6% (indicative) |
| [Phe Phenol and acetone](https://www.materialinsights.org/chemicals/phenol/) | via cumene |
| [AAc Acrylic acid](https://www.materialinsights.org/chemicals/acrylic_acid/) | via propylene oxidation |
| [IPA Isopropanol](https://www.materialinsights.org/chemicals/isopropanol/) | via propylene hydration |

## Other sections

- [Summary](https://www.materialinsights.org/chemicals/propylene/index.md)
- [Overview](https://www.materialinsights.org/chemicals/propylene/overview/index.md)
- [Correlation](https://www.materialinsights.org/chemicals/propylene/correlation/index.md)
- [Production route](https://www.materialinsights.org/chemicals/propylene/routes/index.md)
- [Production](https://www.materialinsights.org/chemicals/propylene/production/index.md)
- [Cycles](https://www.materialinsights.org/chemicals/propylene/cycles/index.md)
- [Trading](https://www.materialinsights.org/chemicals/propylene/trading/index.md)
- [Movement](https://www.materialinsights.org/chemicals/propylene/movement/index.md)
- [Regulation](https://www.materialinsights.org/chemicals/propylene/regulation/index.md)
- [Characteristics](https://www.materialinsights.org/chemicals/propylene/characteristics/index.md)
- [Emissions](https://www.materialinsights.org/chemicals/propylene/emissions/index.md)
- [Relationships](https://www.materialinsights.org/chemicals/propylene/links/index.md)