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Propylene prices remain firm
May '08
In the just past week, domestic propylene markets around the country started gaining momentum, but overall scope was still limited. On the whole, tight propylene supply in domestic market as well as continued high international oil prices provided support to propylene costs.

Downstream manufacturers held strong resistance to high-priced propylene, few factories made small quantity purchases as required and operating rate was at low-end. Shipments from manufacturers were moderate. There seems to be limited scope for upward movement of propylene price in future, especially due to pressure from downstreams.

Propylene produced by Shenyang Wax, Daqing Petrochemical and others in Northeast China were mainly consumed within the manufacturers. Propylene device in Jinzhou Petrochemical was shut down for maintenance. Two sets of devices of Heilongjiang Petrochemical were also parking for overhaul. Operation of Jinxi Petrochemical was limited at 45 percent. In all, northeastern region was in short supply of propylene.

Propylene price rose by about 200 yuan, driven by the hike in Shangdong region, Northwest China. Xianyang Additives also raised rates 200 yuan to 12300 yuan per ton. Xi'an Petrochemical resumed normal supply. Lanzhou Petrochemical price was adjusted to 11,500 yuan per ton

Propylene manufacturers in North China recorded higher rise in prices. Tianjin Dagang pushed up price by 600 yuan to 12,800 yuan per ton. Zhongyuan Oilfield increased rates by 400 yuan to 12,700 yuan per ton. Tianjin Petrochemical promoted 600 yuan to 12,800 yuan per ton. Overall shipments were in good condition.

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