According to an internal source at Xiaoxing Chemical Company (headquartered in Seoul), the company will continue to keep its first propane dehydrogenation (PDH) unit in Ulsan, South Korea, idle.

According to sources on March 27, this facility with an annual production capacity of 200,000 tons has been offline since May 2024, and there are currently no discussions about restarting the facility.

Xiaoxing owns two propane dehydrogenation units in Ulsan, with the second unit having an annual propylene production capacity of 350,000 metric tons.

A trader said: "The profits from propane dehydrogenation are really too poor. I believe there will be more and more facilities making production adjustments... or shutting down directly. Now more propane dehydrogenation facilities are worried about economic efficiency."

According to sources, the second unit began its annual maintenance on February 1 and restarted after maintenance on March 9, with the current operating rate at approximately 90%.

According to assessments by S&P Global Commodity Insights' Platts, on March 26, the CFR price of propylene was $830 per ton, an increase of $10 per ton compared to the previous day (China CFR price).

According to sources, due to thin profits, Xiaoxing suspended production at its 420,000-ton annual capacity purified terephthalic acid (PTA) facility in Ulsan in February. Trade sources also reported uncertainty about whether Xiaoxing's suspension of the PTA facility is a temporary measure or could become a permanent one.

Editor: Lin Mingming