Propylene Oxide Prices have been rising in Asia throughout July-August with the prices at USD 2976 per tonne in July increasing to USD 3205 per tonnes in the first week of August and rising further to USD 3434 per tonne in the last week. 

The prices have been increasing due to supply shortages triggered by the declaration of force majeure by Dow which was facing supply shortage of the upstream raw material for Propylene Oxide which is Propylene. 

The demand of Propylene Oxide is increasing in Asia due to the rising demand for the downstream Polyether Polyols and Propylene Glycol. 

Propylene Oxide is a volatile, colourless, flammable liquid having an ether like odour. Propylene Oxide reacts readily with chemicals like Chlorine, Ammonia, Strong Oxidants, and Acids which is why the chemical is subject to fire and explosion hazards. 

As Propylene Oxide is a highly reactive chemical, it is used as a chemical intermediate for the manufacture of several chemicals. The major derivative of Propylene Oxide is Polyether Polyols which is one of the major components having application in the manufacturing of Polyurethanes. Propylene Glycol is the second largest derivative of Propylene Oxide.

Propylene Oxide is produced traditionally by Chlorohydrin or Epoxidation routes. The main application areas for Propylene Oxide include construction and automotive. 

As per ChemAnalyst, “the declared force majeure by Dow which is one of the major players in the Propylene Oxide market will have a upside effect on the market in the short term and the prices are expected to stable in the medium term as the supply regains its previous levels. The prices of the feedstock Propylene are also a major factor affecting the prices of Propylene Oxide.”