Asian propylene prices in spot market fell amid steadiness in the just concluded week after the markets opened after the Dragon Boat Festival holidays.
Uncertainty in propylene price made most traders stay on sidelines. Although crude oil prices hovered above US $75 over the weekend, downstream markets of polypropylene and propylene oxide were still very poor.
The cracker of Zhenhai Refining & Chemical of China Sinopec located in Ningbo with a capacity of 1 million tons / year restarted on June 12, making Chinese buyers cautious.
Downstream polypropylene production line with capacity of 300,000 tons / year may resume operation within next few weeks. However, facilities of styrene monomer / propylene oxide have resumed production.
In Northeast Asia, propylene was quoted at US $1040-1100/ ton (CFR Northeast Asia). In East China and Shandong province, ex-warehouse price was approximately 8800-8900 Yuan / ton. But market sources said some cargoes were quoted at 8500-8650 Yuan / ton (ex-warehouse).
In FOB Northeast Asian market, sales intention was $1070-1110/ ton (FOB Northeast Asia), but buying interest was light.
In Southeast Asia, a wide spread between offers and bids, put limits on sales of spot and cargo. Market trade was light. Intention maintained around $995-1050/ ton (CFR South East Asia).