High prices may curtail demand from the Chinese petchem sector

LPG Market Outlook

September 2021

The Chinese petrochemical sector will soon, if not already, begin feeling the squeeze of tight supplies and rising prices. Flexible crackers in the region will continue to maximize the naphtha portion of their feedstock slates so long as LPG is at a premium to naphtha, but most of the LPG consumed at these plants is domestically supplied. Most PDH units, on the other hand, must import LPG.

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