Propylene Margins in Asia Projected to Fall Below Zero amid Market Headwinds
Asia Margins to Plunge
According to industry experts, margins on propylene in Asia are expected to dip below zero this year, hovering around minus 20 per ton. This decline is attributed to a sharp decrease in global refining margins since the end of the first quarter of 2024, which has been impacted by low demand.
U.S. Refiners Adjust Operations
During the latest profit season, U.S. oil refiners indicated they would reduce output this quarter due to lower margins and the uncertain geopolitical landscape. This has led to a decline in crude processing by U.S. Petroleum refiners.
In normal circumstances, the refining business operates on low margins and generates relatively little attention compared to the volatile upstream sector. However, European oil refiners TotalEnergies and Neste have recently issued warnings regarding further weakening profit margins amidst decreasing demand.
Comments