Improving supplies weigh on propylene prices in major markets
In Asia, spot propylene prices turned down this past week and have gradually softened by a total amount of $50/ton since then. Although the downstream PP market remained strong in China, there are many crackers and propylene units returning from maintenance shutdowns as can be seen in the propylene section of ChemOrbis PP Production News and this paved the way for the loss in spot propylene prices.
In Europe, spot propylene prices have been on a stable to soft note in October following the downturn in September. The gradual weakness of the spot market was attributed to the rising propylene availability in the region. Although the unexpected shutdown at BASF’s two crackers in Germany caused some jitters about the levels of supply for a short while, it did not take long for players to gauge its impact on the market as being short-lived after the crackers were restarted last weekend.
Likewise, spot propylene prices in the US have followed a stable to soft path in October after posting a visible downward trend in September. In the past two weeks, the spot market has reportedly lost around $20/ton as propylene inventories were at a 3-month high, according to traders.
More free plastics newsPlastic resin (PP, LDPE, LLDPE ,HDPE, PVC, GPS; HIPS, PET, ABS) prices, polymer market trends, and more...
- Crude oil caught between demand woes and production disruption
- Tightness drives European PVC market up, prices near pre-pandemic levels
- Major LDPE markets touch multi-year highs on growing tightness
- A prospect for Q4 through uncharted waters of 2020 amid pandemic
- China's import PP markets maintain uptrend under shadow of oil-driven losses in Dalian futures
- Weaker domestic demand prompts Vietnam to export polymers
- European PP market ceases upward trend in September
- Force majeure declarations rock the boat in Turkish PVC market
- China’s PE uptrend fueled by US force majeures; LDPE soars to more than 1-year high
- Stats: China’s cumulative PP imports in Jan-July 2020 reach record-high