According to available reports, Asian propylene price hit the highest point on Monday, April 14, in last 16 years. Due to tight spot supply for May, buyers had no choice but to accept the sky rocketing prices.
In the past week propylene price for the Asian region rose by US $90 to 100 to reach $1350-1400 per ton (860-893 euros / ton), cost and freight, Northeast Asia.
However, experts suggest prices may not increase further, because some end-users resolutely resist the price breaking through $1400 per ton mark. Few potential buyers opined that it was inevitable to import some raw materials at high price due to the shortage of propylene in China.
On the other hand, supply tension of spot propylene will sustain in April and May, the lower rate of cracker operation in the region will reduce export supply. Since the beginning of this year raw material costs of naphtha have been constantly rising, resulting in lowering cracker operation rate, bringing serious damages to their profit margins.
Fibre2fashion News Desk - China