In the just concluded week, spot price of Asian propylene rose for the second consecutive week, due to support from strong Chinese domestic market and higher price of international crude oil futures. However, logistical problems continued to hinder trade activities, due to congestion at China's major ports.
December shipments slowed down, despite steady supply from Northeast Asia, mainly affected by current transport bottlenecks. Trade talks of January cargo will begin at the earliest in the next few weeks.
In Northeast Asia, spot price rose US $15-20 to $1290-1315 / ton (CFR Northeast Asia / China). In Southeast Asia, spot price increased $30-40 to $1220-1230 / ton (CFR South East Asia).
In FOB Northeast Asian market, purchase intention from buyers grew to $1,200 / ton (FOB Japan), $1230-1240 / ton (FOB Korea) and $1250 / ton (FOB Taiwan). Trade was light, being limited by logistical problems, despite ample supply from Japanese and South Korea.
In FOB Southeast Asian market, purchase intention of buyers climbed marginally to $1100 / ton (FOB South East Asia). Limited supply may continue to hinder transactions.
In China's domestic market, propylene price rose 500 Yuan to 10700-10800 Yuan / ton (ex-warehouse) in the first half of the week in Shandong area, due to support from higher price of crude oil futures and steady price of downstream polypropylene.
But the price fell to 10,600 Yuan / ton (ex-warehouse) in the second half of the week in Shandong area, as buyers stood on sidelines due to abundant supply and slow demand from downstream market.
Fibre2fashion News Desk - India
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