Propylene oxide (PO) is a chemical intermediate made from propylene. Most of it becomes polyether polyols and then polyurethane foam for furniture, car seats and insulation; the rest goes into propylene glycol and surfactants.
China's market
China is the world's largest PO producer. The wastewater-heavy chlorohydrin route used to dominate, but capacity using HPPO (hydrogen peroxide) and co-oxidation routes that also make styrene or MTBE has grown quickly. New plants keep adding supply.
What moves the price
Propylene price — the feedstock cost
Polyether demand — furniture, auto and construction activity
New capacity — large start-ups weigh on prices
Process rules — the phase-out of chlorohydrin plants
Co-product prices — co-oxidation plants also depend on styrene and MTBE margins
About the price on this page
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