In the previous week, spot market prices of Asian propylene went up, mainly due to higher offers in Southeast Asia. Supply has reduced compared to previous months and a large number of regional cargoes were sold to Northeast Asia where price level was relatively higher.
Price in Shandong Province rose, and the unexpected repair of a cracker prompted sales intention up to US $1,250 / ton (CFR Northeast Asia). However, buying interest from buyers was limited, as downstream derivatives markets were mixed.
Polypropylene producers still felt the price of $1200 / ton (CFR Northeast Asia) unbearable, buying intention from propylene oxide plants and other profit-making derivatives production plants was at $1200 / ton (CFR Northeast Asia).
In Northeast Asia, spot assessment of propylene in the region remained stable at $1180-1220 / ton (CFR Northeast Asia), reflecting the level of market bargaining.
Price in Shandong Province rose to 10,000 Yuan / ton (ex-warehouse) that brought sales target of sellers to $1,250/ ton (CFR China). But the price fell back to about
9600-9700 Yuan / ton (ex-warehouse) on Friday.
In East China, domestic price of propylene rose 300-400 Yuan, to 9,400 Yuan / ton (ex-warehouse).
In the FOB Northeast Asian market, no deal could be reached. Limited supply from South Korea pushed selling intention up to $1,200 / ton (FOB Korea). Most traders said it would be too risky to purchase at such high prices.
In Southeast Asia, propylene spot price rose $40-50 to $1120-1160 / ton (CFR South East Asia), due to higher offers. Supply was tight, due to the limited supply from Vietnam after a new polypropylene plant was put in to operation; in addition, most cargoes were bound for China.
In FOB Southeast Asian market, spot prices held steady. September cargo basically finished transactions, while October shipment has not yet started trade activities.