Spot ethylene and propylene prices turn up in Northeast Asia

Ethylene and propylene prices have turned up this week in Asia, according to players in the region. Asian ethylene prices were reported to stand at $1040/ton CFR NE Asia as of Friday, with a $30/ton increase on a daily basis and a $40/ton increase on a weekly basis.

An upward movement is also seen in Asian propylene prices. Propylene prices are reported at $795/ton FOB Korea, up $5/ton from yesterday and about $15-20/ton week-on-week. Spot propylene prices on CFR China basis similarly increased, though not as sharp as ethylene, by about $5/ton on a weekly basis to stand at $835/ton while they remained flat on a daily basis.

This jump in ethylene prices was attributed to the demand from Chinese styrene producers due to the ongoing tightness for this product. Nevertheless, other downstream markets including PE have softened for a second week in a row in China, failing to catch up with the ethylene rise.

As for propylene, the weekly firming was driven by the improved margins for PP production despite falling prices for this product in China’s import market. The recent congestion at Chinese ports and strong domestic market in South Korea also supported the weekly increases in propylene prices, according to traders.