In the previous week, Asian propylene spot price rose fast, mainly due to the drive from crude oil futures and downstream PP price.
However, market dealers suspect sustainability of market gains, as price increase was mainly caused by speculative buying, as end-users in Chinese market were still cautious.
Price may also move up in the next two weeks, due to strong prices of crude oil and naphtha, as well as firm trade of PP, PO, oxygen ethanol and acrylic market in downstream sectors, sources said.
However, higher stocks in China weighed on the market, as local supply was adequate.
In Northeast Asia, spot price jumped US $20-65 to $1180-1250 / ton (CFR Northeast Asia), due to the impact of price increase of PP and propylene in China.
In the FOB Northeast Asian market, it was said, a deal was reached at $1,160 / ton (FOB Korea), but the news was not confirmed. Offers for December shipment rose to a high level of $1100 / ton (FOB Korea).
In Southeast Asia, spot price rose $10-20 to $1120-1130 / ton (CFR South East Asia), as being influenced by offers and bids in the market.
In the FOB Southeast Asian market, price in China rebounded to the middle level of US $1000/ ton (FOB South East Asia). It was said that a single offer was stuck at $1100 / ton (FOB Thailand), but details were unknown.
Purchase interest was limited; due to moderate demand in Southeast Asia and prospects of the main market in China were unclear.
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.jpg?tr=w-120,h-60,c-at_max,cm-pad_resize,bg-ffffff "UBM China (Shanghai)")
-Ltd..jpg?tr=w-120,h-60,c-at_max,cm-pad_resize,bg-ffffff "Thermore (Far East) Ltd.")
