Propylene market in Belgium

Earlier Report Observations

The Belgian propylene market saw its physical volume contract from 1.25 million tons in 2018 to 1.03 million tons in 2021. This downward trend was sharply accentuated in 2020 by the COVID-19 pandemic, which caused a drastic drop in demand for petroleum products and their derivatives. A recovery in fuel consumption from early 2022, accompanied by rising prices, helped the market's value grow to $715 million in 2021 even as volume remained subdued.

A dramatic reversal took place in 2022, with market volume surging by over 38% to 1.41 million tons. This expansion was primarily driven by the spike in global hydrocarbon prices following Russia's invasion of Ukraine, which incentivized production. Concurrently, a period of strong entrepreneurial dynamism in Belgium, marked by the highest net business creation rate since 2017, facilitated the entry of new players into the industrial sector, further boosting activity.

Market volume settled at a high level above 1.3 million tons in 2023-2024. The decline in energy prices in 2023 reduced production costs for petrochemicals, while automatic wage indexation based on the health index helped maintain household purchasing power and downstream demand. By 2024, continued economic stability characterized by high employment and moderated energy costs provided a favorable environment, enabling market volume to grow to nearly 1.6 million tons.

Production propylene in Belgium

In value, 2017-2020, M $ US

Belgium's propylene production declined for the second consecutive year. In 2020, output was valued at 424.8 million US dollars, marking a 15.6% drop compared to 2019. Over the period from 2017 to 2020, production decreased by 4.1%, with a compound annual growth rate of 1.4%. The highest value was recorded in 2018 at 578.1 million US dollars, which represented the largest increase of 30.5%.

Annual dynamics of production in Belgium in value, 2017-2020, M $ US

In kind, 2017-2020, K t

Belgium's propylene production declined for the second consecutive year. In 2020, 838.1 thousand tonnes were produced, down by 6.6% versus the previous year. Between 2017 and 2020, production decreased by 6.3%, equating to an annualized rate of 2.1%. The peak was reached in 2018 with 951.9 thousand tonnes, which saw the largest increase of 6.4%.

Annual dynamics of production in Belgium in kind, 2017-2020, K t

Exports propylene from Belgium

Exports in kind, K t

The market showed signs of volatility over the observed period. Exports bottomed in 2018 at 59.0 thousand tonnes and peaked in 2020 at 124.6 thousand tonnes, differing by a factor of 2.1. In 2020, Belgium exported 124.6 thousand tonnes of propylene, which is 85.8% above the 2019 level. The largest decline was recorded in 2018 at 11.0%.

Annual dynamics of product's exports from Belgium in kind, 2017-2020, K t

Throughout 2017 to 2020, two countries—the Netherlands and Germany—concentrated most of Belgium's propylene exports in kind, while other markets were less significant individually.

Structure of product's exports in kind by countries, 2017-2020

World map of product's exports from Belgium in kind, 2017-2020

Exports in value, M $ US

Cross-border shipments of propylene from Belgium increased for the third consecutive year. In 2020, Belgium exported 98.7 million US dollars of propylene, equivalent to a sharp gain of 35.9% versus the previous year. Between 2017 and 2020, exports increased by 61.7%, equating to an annualized rate of 17.4%.

Annual dynamics of product's exports from Belgium in value, 2017-2020, M $ US

Over 2017 to 2020, the Netherlands (40.0% of exports in value terms), Germany (39.4%), and France (16.5%) made the biggest contribution to Belgium's propylene exports in value terms, jointly accounting for 95.9% of total flows.

Structure of product's exports in value by countries, 2017-2020

World map of product's exports from Belgium in value, 2017-2020

Imports propylene to Belgium

Imports in kind, K t

Propylene volumes imported by Belgium increased for the second consecutive year. In 2020, imports totalled 382.0 thousand tonnes, amounting to a 4.7% increase compared to 2019. Over the period from 2017 to 2020, imports decreased by 7%, with a compound annual growth rate of 2.4%. The lowest value was recorded in 2018 at 354.4 thousand tonnes, which saw the largest decline of 13.7%.

Annual dynamics of product's imports to Belgium in kind, 2017-2020, K t

In 2017 to 2020, France (27.7% of imports in kind), the Netherlands (21.6%), and the United Kingdom (20.6%) formed the main cluster of markets for Belgium's propylene imports in kind, with a combined share of 69.9% of total flows.

Structure of product's imports in kind by countries, 2017-2020

World map of product's imports to Belgium in kind, 2017-2020

Imports in value, M $ US

Cross-border shipments of propylene to Belgium declined for the second consecutive year. In 2020, Belgium imported 275.6 million US dollars of propylene, representing a steep reduction of 25.2% year-on-year. Between 2017 and 2020, imports decreased by 25.4%, equating to an annualized rate of 9.3%. The highest value was recorded in 2018 at 387.2 million US dollars, which saw the largest increase of 4.8%.

Annual dynamics of product's imports to Belgium in value, 2017-2020, M $ US

Throughout 2017 to 2020, France (27.3% of imports in value terms), the Netherlands (23.0%), and the United Kingdom (19.1%) formed the core group of markets for Belgium's propylene imports in value terms, together representing 69.3% of total flows.

Structure of product's imports in value by countries, 2017-2020

World map of product's imports to Belgium in value, 2017-2020